Student Information Systems U.S. Higher Education Market Share, Insights, and Trends: 2004-2008 By Vicki Tambellini President, The Tambellini Group

Student Information Systems Market Share, Insights and Trends: 2004-2008 • The Tambellini Group Page 2 of 9

Executive Summary With respect to the selection of top-tier Student Information Systems by US higher education institutions, the five-year period from 2004 through 2008 was shaped by a number of factors influencing decision makers including vendor consolidation, companies attempting to maintain legacy system customers, and tightening economic conditions. During this period, the higher education market nonetheless experienced a steady stream of colleges and universities purchasing new Student Information Systems from top-tier higher education software vendors. Between 2004 and 2008, nearly 10% of U.S. higher education institutions selected a new SIS. SunGard Banner, Oracle PeopleSoft Enterprise Campus Solutions, Jenzabar EX, Datatel Colleague Student, SunGard PowerCAMPUS Student, and Campus Management products were most often selected in 2008. Overall, in 2008, SunGard Higher Education was the leader in both SIS contracts and the number of institutions that purchased SunGard Higher Education SIS products (comprised of Banner or PowerCAMPUS). Despite strong competition, the data shows that between 2004 and 2008, SunGard Higher Education held the leading position for the aggregate of the 5 years. During the same period Jenzabar increased its win rate, by approximately 4%, to 18% of the institutions or individual campuses that selected a new SIS. When broken down by type of institution making the selection, the leader for 2008 varies. Private not-for-profit, 4 year institutions preferred Jenzabar EX while public, 4-year or above preferred Oracle. Datatel Colleague was preferred by public, 2-year institutions in 2008. There is also a difference in vendor selections based on institution size. The largest institutions selecting a top-tier SIS vendor during the five-year period were nearly evenly divided between Oracle PeopleSoft Enterprise Campus Solutions and SunGard Banner. Fifteen of the largest institutions that made selections between 2004 and 2008 are listed in the report by name and vendor selected. During the five-year period, the most active year for new purchases was 2005, and in that year alone nearly 400 institutions selected a new SIS. The full report includes insight into this phenomenon and its etiology. Research data for this report was compiled by The Tambellini Group (TTG). TTG maintains, updates and delivers the most comprehensive database of institution technology profiles available today. In 2001 the company began tracking this data in response to client requests. While other firms have historically provided some information and opinions regarding market trends, the data to support these opinions has typically been provided by vendors minus any detailed customer lists. Without the benefit of detailed, verified technology profiles, institutions, vendors, consultants and venture capitalists were generally left on their own to try to find enough critical technology data to support important decisions. Because customer data can be hard to access from vendors, institutions now rely on The Tambellini Group to provide detailed information. TTG’s higher education institution technology profile database is used by institutions to find peers with similar technology implementations for benchmarking comparisons and vendor references. The individual institution profile data, which is made available for free to full-time higher education employees, is accessible on edu1world.org, which is a project of The Tambellini Group. Since 2008, institutions have been self-reporting purchases and updating their technology profiles with edu1world for easy cataloging and retrieval of information. This is especially helpful for institutions that wish to maintain an inventory of technology purchases without dedicating internal resources for managing the data. Vendors, consultants and venture capitalists also utilize the database to gain insight into market share data and other facts about vendor sales history that are not available from any other single source. Prior to the availability of this database, it was difficult to track and understand market-share data by vendor and vendor product. Once captured, the data is stored in a consistent manner and categorized for easy retrieval. This report is meant to provide specific data for each of the vendors that we are able to track. The data is provided by institution size and by institution type to give the reader insight regarding which vendors are most often selected by institutions in each category. Institutions considering investments in SIS systems may find the report useful. Others who track the market may also benefit from the detailed market share data by vendor. Source: The Tambellini Group research based on available data between 2004-2008. Copyright © 2009 The Tambellini Group, LLC • TheTambelliniGroup.com • edu1world.org

Student Information Systems Market Share, Insights and Trends: 2004-2008 • The Tambellini Group Page 3 of 9

U.S. Higher Education Market Share, Insights and Trends: 2004-2008 Overview Between 2004 and 2008, approximately 777 U.S. higher education institutions, defined as individual campuses, selected a new student information system (SIS) from a top-tier higher education software vendor. The Tambellini Group tracks 7,986 U.S. higher education institutions. The top-tier vendors analyzed were Campus Management, Datatel, Jenzabar, Oracle, SAP and SunGard Higher Education. Data for several other vendors is included in the category of “other”. In the final year of the five-year period reviewed, SunGard Higher Education was the leader in both SIS contracts and in the number of institutions that purchased SunGard Higher Education SIS products (comprised of Banner or PowerCAMPUS). The data shows that between 2004 and 2008, SunGard Higher Education held a consistent ability to win approximately 36%-37% of the SIS institution selections with its Banner product. During the same period, Jenzabar increased its win rate, by approximately 4%, to 18% of the institutions or individual campuses that selected a new SIS. During this time both vendors offered significant incentives to existing customers to encourage them to implement new products. SunGard Higher Education announced that all customers running its IA Plus product suite would not have vendor software maintenance support by January 2010. This and other financial incentives from vendors encouraged customers to evaluate and purchase new SIS systems between 2004 and 2008. Also worth noting is that in 2008 Oracle increased its win rate of individual campus selections to 19% compared to its 5-year average of 11%. Later in this report vendor selection by enrollment size is shown. Vendor Products by Percent of Institutions Selecting New SIS from a Top-Tier Vendor (Selected by U.S. Institutions between 2004-2008) Top-Tier Vendors (Listed Alphabetically)

2004 - 2008

2008

Campus Management

10%

4%

Datatel Colleague Student

12%

9%

Jenzabar CX

1%

less than 1%

Jenzabar EX

14%

18%

Oracle PeopleSoft Enterprise Campus Solutions

11%

19%

less than 1%

less than 1%

SunGard Banner Student

36%

37%

SunGard PowerCAMPUS Student

11%

9%

4%

4%

SAP Student Lifecycle Management

Other *Percentages do not add up to 100% due to rounding.

2005 Market Influences Over this five-year period, the annual number of institutions selecting a top-tier student information system vendor peaked in 2005. In that year, 51% of the total institutions selecting a new SIS chose SunGard Banner, 14% chose Jenzabar EX, 13% Datatel Colleague, 10% Campus Management, 6% SunGard PowerCAMPUS, 2% Jenzabar CX, 1% chose Oracle PeopleSoft Campus Solutions, and 3% other. Any discussion of SIS market share data for 2005 must include mention of the unique product offerings and company acquisitions that took place. SunGard Higher Education offered a special licensing program to customers that were using older SunGard SIS products (IA Plus). This program called LEAP (License Equity Acknowledgment Program) was marketed aggressively in 2005. The LEAP program made it Source: The Tambellini Group research based on available data between 2004-2008. Copyright © 2009 The Tambellini Group, LLC • TheTambelliniGroup.com • edu1world.org

Student Information Systems Market Share, Insights and Trends: 2004-2008 • The Tambellini Group Page 4 of 9

financially desirable to migrate from older SunGard Higher Education SIS products such as IA Plus to the company’s flagship product, Banner. At the same time, Jenzabar offered its customers attractive options to migrate to its newer EX platform. In January 2005, Oracle completed its acquisition of PeopleSoft. This acquisition between the two Fortune 100 companies had a direct impact on the higher education SIS market. With each company having software applications for the higher education market, technology decision makers pulled back from committing to purchase software products from Oracle because there was uncertainty as to which product line Oracle would continue to support. There was turmoil in the higher education market as many feared that Oracle would decide to discontinue support of the PeopleSoft Higher Education software applications in favor of the Oracle-developed products. Due to this uncertainty, the data shows that many institutions turned to other top tier vendors such as SunGard Higher Education and Jenzabar to provide their SIS applications. Even after the acquisition of PeopleSoft was complete, colleges and universities waited for definitive commitments from Oracle before purchasing software applications from the company. By 2008, Oracle was demonstrating a clear commitment to the higher education community and many institutions, especially large university systems and multi-campus institutions, began to license Oracle’s PeopleSoft software applications. Examples of Oracle’s commitment to the market include the company’s decision to keep the PeopleSoft products and product names for higher education and to continue to support and enhance the products. Type of Institutions Selecting a Top-Tier SIS Vendor (Selected by U.S. Institutions in 2005 Alone)

*Percentages may not add up to 100% due to rounding ** Unknown = Institutions that do not report student counts to IPEDS (eg. administrative units, small private institutions, etc.).

Source: The Tambellini Group research based on available data between 2004-2008. Copyright © 2009 The Tambellini Group, LLC • TheTambelliniGroup.com • edu1world.org

Student Information Systems Market Share, Insights and Trends: 2004-2008 • The Tambellini Group Page 5 of 9

Vendor Selection by Institution Type Between 2004 and 2008, private not-for profit institutions accounted for 39% of the institutions selecting a new SIS from a top-tier vendor, followed by 2-year public institutions (26%), 4-year public institutions (18%), private for-profit (13%), and administrative units (4%). When analyzing the top-tier SIS vendors selected by different institution types, we noted marked differences in vendor selection. In 2008, Jenzabar was selected more often than other vendors among institutions that are private not-for-profit. Oracle was selected most often by public four-year institutions, and Datatel was selected most often by public two-year institutions. Among private for-profit institutions, Campus Management has historically been a market leader. In 2008, SunGard Higher Education was awarded the SIS contract with DeVry, Inc. the parent organization of DeVry University, which was one of the largest higher education contract awards of the year. The company serves students in more than 90 locations. In addition to a significant software license agreement, SunGard Higher Education was also the recipient of a large implementation contract. SunGard Banner was selected to replace Oracle’s student system application, which was discontinued after Oracle acquired PeopleSoft. Vendor Products by Percent of Institution Type Selecting New SIS from a Top-Tier Vendor (Selected by U.S. Institutions between 2004-2008)

Private not-for-profit, 4-year or above Jenzabar EX SunGard PowerCAMPUS Student Datatel Colleague Student SunGard Banner Student Oracle PeopleSoft Enterprise Campus Solutions Campus Management Jenzabar CX Other

2004  -­‐  2008   25%   22%   14%   14%   8%   6%   3%   8%  

2008   35%   21%   12%   7%   7%   5%   2%   12%  

2004  -­‐  2008   61%   28%   4%   2%   2%   1%   1%   1%  

2008   29%   57%   4%   4%   0%   4%   4%   0%  

2004  -­‐  2008   53%   20%   12%  

2008   21%   32%   21%  

*Percentages may not add up to 100% due to rounding and “other” selections.

Public, 4-year or above SunGard Banner Student Oracle PeopleSoft Enterprise Campus Solutions Datatel Colleague Student SAP Student Lifecycle Management SunGard PowerCAMPUS Student Jenzabar EX Campus Management Other *Percentages may not add up to 100% due to rounding and “other” selections.

Public, 2 year SunGard Banner Student Datatel Colleague Student Jenzabar EX

Source: The Tambellini Group research based on available data between 2004-2008. Copyright © 2009 The Tambellini Group, LLC • TheTambelliniGroup.com • edu1world.org

Student Information Systems Market Share, Insights and Trends: 2004-2008 • The Tambellini Group Page 6 of 9

Jenzabar CX

5%   5%   1%   1%  

16%   5%   5%   0%  

Other

4%  

0%  

Oracle PeopleSoft Enterprise Campus Solutions SunGard PowerCAMPUS Student Campus Management

*Percentages may not add up to 100% due to rounding and “other” selections.

Vendor Selection by Institution Size Although schools with 5000 or more students make up only 13% of the market, they made 29% of the SIS purchases during this period. A factor in the selections by large institutions was the change at SunGard Higher Education regarding support for its older product line. Customers were faced with moving to Banner or to a competitor’s SIS product and the majority of the selections were made by 2008. Institutions Selecting Top-Tier Student Information System Vendor by Enrollment Size (Selected by U.S. Institutions between 2004-2008) Percentage of Institutions Making a SIS Selection by Enrollment Category 2004 - 2008

Percentage of Institutions by Enrollment Category Compared to the Total Number of Institutions Tracked

< 2,500

45%

65%

2,500 and 4,999

16%

9%

5,000 and 9,999

13%

6%

10,000 and 19,999

10%

4%

20,000 and 29,999

4%

2%

30,000 or more No IPEDS Categorization

2%

1%

10%

13%

Institution size is based on IPEDS FTE data.

 

*Percentages may not add up to 100% due to rounding. ** Unknown = Institutions that do not report student counts to IPEDS (eg. administrative units, small private institutions, etc.). Source: The Tambellini Group research based on available data between 2004-2008. Copyright © 2009 The Tambellini Group, LLC • TheTambelliniGroup.com • edu1world.org

Student Information Systems Market Share, Insights and Trends: 2004-2008 • The Tambellini Group Page 7 of 9

Specific top-tier SIS vendors selected by U.S. higher education institutions differed by institution enrollment size. Institutions Selecting Top-Tier Student Information System Vendor by Enrollment Size (Selected by U.S. Institutions between 2004-2008)

<  2,500   SunGard   Jenzabar   Campus  Management   Datatel   Other   Oracle   SAP       5,000  and  9,999   SunGard   Oracle   Datatel   Campus  Management   Jenzabar   Other  

2004-­‐2008   37%   25%   16%   11%   7%   4%   less than 1%  

               

2,500  and  4,999   SunGard   Datatel   Jenzabar   Oracle   Campus  Management   Other   SAP  

2004-­‐2008   46%   21%   17%   9%   7%   1%   0%  

  10,000  and  19,999   SunGard   Oracle   Datatel   Jenzabar   SAP  

  2004-­‐2008   62%   27%   8%   1%   1%  

 

 

                 

   

   

 

 

   

 

20,000  and  29,999   SunGard   Oracle   Datatel  

Jenzabar   SAP      

  2004-­‐2008   72%   13%   10%   3%   2%   1%  

2004-­‐2008   58%   27%   9%   3%   3%  

   

               

30,000  or  more  

Oracle   SunGard   Datatel          

*Percentages may not add up to 100% due to rounding

Source: The Tambellini Group research based on available data between 2004-2008. Copyright © 2009 The Tambellini Group, LLC • TheTambelliniGroup.com • edu1world.org

2004-­‐2008  

58%   33%    8%          

Student Information Systems Market Share, Insights and Trends: 2004-2008 • The Tambellini Group Page 8 of 9

Representative Sample Largest Institutions Selecting Top-Tier Student Information System Vendor: 2004-2008 (Selected by U.S. Institutions between 2004-2008) Institution

SIS Vendor Selected

Enrollment

CUNY System Office

Oracle PeopleSoft

220,000+

Nevada System of Higher Education

Oracle PeopleSoft

101,000+

Tennessee Board of Regents

SunGard Banner

91,000+

Ivy Tech Community College Central Office

SunGard Banner

60,000+

Oracle PeopleSoft

60,000+

Colorado Community College System

SunGard Banner

57,000+

Ohio State University - Main Campus

Oracle PeopleSoft

51,000+

Arizona State University at the Tempe Campus

Oracle PeopleSoft

51,000+

DeVry University Corporate Office

SunGard Banner

48,000+

Alamo Community College District Central Office

SunGard Banner

46,000+

Texas A & M University

SunGard Banner

45,000+

Purdue University - Main Campus

SunGard Banner

44,000+

Campus Management

42,000+

New York University

Oracle PeopleSoft

40,000+

University of Arizona

Oracle PeopleSoft

36,000+

University of Colorado System Office

Education Management Corporation - Art Institutes

Methodology The Tambellini Group offers no specific guarantee regarding the accuracy or completeness of the information presented, but we make every reasonable effort to present the most reliable information available. The Tambellini Group gathers publicly available data on student information system selections from a variety of sources including press releases, institution materials (i.e. project websites and presentations), news articles, and vendor case studies. In 2009, The Tambellini Group entered into an alliance with Datatel, which provides additional research data. Whenever possible, multiple data sources are used to verify the data, including primary research. Data for this report was also provided by Jenzabar. Campus Management, SunGard Higher Education and Oracle were contacted but declined to participate in providing data for the report. Campus Management often licenses its SIS products to private and proprietary schools and finding all of their contract wins is very difficult. Data for Campus Management is not complete. Three Rivers, another SIS provider, is also very difficult to track. They are generally successful in private colleges, and procurements are easily hidden from public review and research. Three Rivers has been invited to submit data for inclusion in the 2010 report. SunGard Higher Education and Oracle closely guard their customer lists. The vast majority of their customers are easy to research and locate given sufficient time. The Datatel data that we acquired in 2009 also helped us to validate SunGard Higher Education and Oracle customer decisions between 2004 and 2008. Student information systems include capabilities for admissions, financial aid, student billing, registration, grades, transcripts, academic advising, and student services. The top-tier vendors included were based on the number of new student information system selections by institution, as well as contracts, during the period evaluated. SAP was included because of the company’s leading position as a provider of software solutions globally. Additionally, SAP has sold its SIS software product to institutions outside of the U.S. between 2004 and 2008. Source: The Tambellini Group research based on available data between 2004-2008. Copyright © 2009 The Tambellini Group, LLC • TheTambelliniGroup.com • edu1world.org

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The “Other” category of vendors includes data for: • ACCESS Group • Agresso Americas • Blackbaud Student Information System • Jenzabar PX-ESP • RJM SONIS • SCAN Camus Café • SunGard Matrix • Three Rivers CAMS Enterprise Institution type and enrollment figures are from the U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS). The number of institutions was calculated based on the institution being recognized by the U.S. Department of Education, not necessarily the total number of campuses. If the institution did not report to the U.S. Department of Education, the institution was assigned its own unique identifier and was counted once. State systems purchases were broken down into the actual number of institutions within the system for reports based on institution. For More Information This report is available online at www.edu1world.org in the community called: “2010 Research Reports.” Access to this community is available to members of the edu1world.org community who have paid for a 2010 annual subscription to research reports. The annual fee for an institution with unlimited users is $3,500. The annual fee for non higher education organizations with unlimited users is $15,000. Participation in the 2010 Research Reports community provides access to the 2009 SIS report, the 2010 SIS report, which will be available in Q2 2010, up to 10 hours per year of consulting insight and access to member-only webinars where the research reports will be reviewed and discussed. Single user copies are available for $1,500 for full-time higher education employees and $2,500 for non-higher education employees. If your institution is planning to select a new student information system and needs to benchmark peer institutions based on type of institution and enrollment size, please contact us through our website at thetambellinigroup.com or edu1world.org. Detailed reports with institution names, vendor products selected and selection dates are also available for purchase. For additional reports and consulting services, please visit www.thetambellinigroup.com. About The Tambellini Group The Tambellini Group is an independent professional services firm that advises executives, conducts market research, manages higher education contract negotiations with technology vendors, and publishes thought leadership on business and technology issues. The Tambellini Group specializes in the higher education, K-12, state and local government, federal, healthcare, and non-profit sectors. The Tambellini Groups owns the majority interest in edu1world.org. Edu1world.org provides access to an online higher education institution technology profile database. The database is accessible to all members of edu1world.org. Membership is free for all full-time higher education employees and is available to vendors for a nominal monthly fee. Copyright and Terms of Use Copyright ©2009 The Tambellini Group, LLC. All rights reserved. No portion of this report may be reproduced in whole or in part without attribution to The Tambellini Group, LLC. Only the person or organization who has licensed this report may access and use the report. You may print and use a single copy of this report as part of a single user license of the report. You may not distribute this report to others inside your company unless you have specifically licensed the rights to distribute the report for internal use. The Tambellini Group offers no specific guarantee regarding the accuracy or completeness of the information presented, but we make every reasonable effort to present the most reliable information available. The Tambellini Group assumes no liability for errors, omissions or discrepancies in the information contained in this report. Source: The Tambellini Group research based on available data between 2004-2008. Copyright © 2009 The Tambellini Group, LLC • TheTambelliniGroup.com • edu1world.org