Cloud-Based Learning Solutions - Skillsoft

Cloud-Based Learning Solutions: Making the Right Choice for Your Enterprise

Section 5

Understanding cloud-based licensing

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Recently, there has been a dramatic agility by offering a wider set of audience and if the training will Set your initial audience level at
shift in the way both consumers choices so changes can be made be compulsory or elective. Most a volume that is realistic so that
and companies want to do as needs and priorities evolve. suppliers will enable you to add you leverage the volume discount
business. According to recent more licenses over the term at and then add increments of
Forrester research21, large numbers It is important to understand that the same price per license so licensing blocks over the term
of software companies have a subscription-based licensing that you don’t over invest. if/when your needs expand.
made the shift to a subscription- approach provides employees
based business model. Today, with a gateway to access content Classroom based purchasing vs. cloud-based licensing
subscription licenses are the from (a) designated content
staple for cloud-based learning collection(s) typically for a year. VS.
and talent management, sales Under a subscription model, the
force automation, human resource supplier has already taken into Trying to find parallels between a classroom and cloud-based licensing is like comparing apples to oranges; they have
management and purchasing account the fact that employees distinctly different business models.
software. According to the same have different learning needs and
research, many purchasing preferences, so the model assumes
authorities22 call our current times that employees will access just
the “subscription economy.” a portion of the content from the
cloud that is made available.
Why? Because cloud-based
suppliers provide companies with Subscription-based models also
cost efficiencies and convenience recognize volume advantages;
that a cost-of-goods purchasing therefore, the more employees
approach just doesn’t satisfy. under contract, the lower the
Cloud-based licensing also price per license. To set the right
provides buyers with greater foundational subscription level,
consider your target learner

21 An Executive Primer To Customer Success Management, A Forrester Consulting Thought Leadership Paper Commissioned By Gainsight. April 2014.
22 An Executive Primer To Customer Success Management, A Forrester Consulting Thought Leadership Paper Commissioned By Gainsight. April 2014.

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Section 5

Cloud-based pricing trends

For the past 10 years, the learning According to the PPI, the The most popular measures for a significant savings that
cloud-based learning’s value can make the purchase
market has seen a gradual shift average price in the Computer are often associated with cost even more compelling.
avoidance, time savings and Suppliers will often tier
away from classroom delivery Training category rose just over increases in skill or capability. their term discount pricing
advantages to correspond
toward cloud-based learning 12% between 2007 and 2014.

models. During this period, cloud- Therefore, any prices you may have

based learning providers have researched a few years ago likely

applied a tremendous amount won’t apply in today’s cloud-based solving these problems, not just with the number of years
listed at the bottom of a long list specified in the contract duration.
of investment to expand their learning market. Some cloud-based

topical coverage and the features learning providers have been of products. Ask the provider how Before entering into multiyear term
they measure value and if they with a supplier, ensure that the
within their learning solutions. The innovating rapidly to emerge from provide a mechanism within their supplier has the sustainability to
service offering to evaluate that remain in business for the long haul.
Producer Price Index (PPI)23 is a the global economic crisis even value over the program’s duration. It is not recommended to enter into
The most popular measures for multiyear term agreements with
helpful resource to understand the stronger than they were before. cloud-based learning’s value brand new startups or companies
are often associated with cost that have been in business less
trends of pricing within the cloud- While price must be part of the avoidance, time savings and than five years. The industry has
based learning industry. This index conversation, in a subscription increases in skill or capability. been in existence for approximately
is calculated by the U.S. Bureau of economy it is typically not the
Labor Statistics and measures the
conversation. Organizations

Anchor your investment in normally purchase elearning

the business value associated to address issues with scale,
speed to market, resourcing, 20 years so when entering multiyear
with the learning solution. efficiency, expertise or some While pricing has increased in agreements, search out providers
this field overall, most cloud- that have longevity and the financial
average change in selling prices other capability gap. As based learning providers desire backing to remain in business well
received by domestic producers you review the proposals offered multiple-year contracts and will into the future.
over time. by your shortlisted suppliers, provide a discount to attract them.
make sure the pricing proposed
Inquire about multiple term price
is aligned with the value related to
advantages as they often provide
23 www.bls.gov/ppi, July 7, 2014.

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Section 5

Navigating the contract process

While every negotiation has its has a Software as a Service to your stakeholders in order forms to the MLA that represent
nuances, there are some best (SaaS) contracting template, to get employees trained by the specific solutions under
practices to apply toward the they are rarely adequate to a certain time frame. The license, the pricing and the
purchase of cloud-based learning capture the intellectual property typical implementation period contract term beginning and
solutions that will alleviate avoidable elements involved with a for cloud-based learning is end dates. Since the MLA
time delays. learning content solution. Also, 4-6 weeks so work backward serves to govern the overall
suppliers recognize that liability from that date and anticipate business relationship and
• U se the supplier’s protections are a two-way the negotiation of a new legal terminology, it is a good
contracting paper, not street so it is common for a supplier agreement to take idea to have it reviewed by
your own. The supplier is cloud-based learning partner two to three months. As you your legal and/or procurement
accustomed to contracting to have thought out these engage your legal and/or teams while you conduct your
for their software service provisions in its standard terms procurement representatives, pilot and refine the specific
on a daily basis. They have and conditions. It is also routine keep things simple. Explain that solutions you will license.
already spent much effort for an organization to assume the learning supplier partner
in outlining the customary intellectual property liability hosts proprietary learning • A void unnecessary
terms and conditions that are when they choose to customize content. Outline the license concerns. Most cloud-based
acceptable to a vast number the supplier’s material. level you require, the content learning suppliers have
of organizations representing solutions you need to contract provisions and protections
a wide range of industries. • Get your legal or for and the term length. against storing any data that
Enforcing your organizations’ procurement representatives is considered sensitive. It is
contracting paper will involved very early in • Understand the anatomy of typical for their learning
inevitably cause many the process. Inform your the agreement’s structure. transcript tracking to include
negotiation redlines, hours of internal legal and procurement Frequently, cloud-based name and company email
legal involvement and it will teams of your required learning suppliers will establish address. All other fields
surely push back your launch implementation date and the a Master Licensing Agreement are often optional. Most
date. Even if your organization commitments you have made (MLA) and then apply order cloud-based learning providers

53

Cloud-Based Learning Solutions: Making the Right Choice for Your Enterprise

Section 5

Navigating the contract process

also don’t need complex that they can explain how Share On
Service Level Agreements the learning solutions will be
(SLAs) so pushing to institute used by employees if your 54
them within your agreement legal or procurement teams
is likely unnecessary. Keep in have inquiries along the way.
mind that learning partners do Business-level stakeholder
not constitute a service that involvement will help maintain
will severely impose on your the sense of urgency to
bottom line if your employees progress through the legal
cannot access the training aspects swiftly.
for a brief period of time.

• Track progress within an
action plan. Every process
benefits from sound and
steady project management.
Map out the timelines for
contract review cycles,
determine who should be
the point person for any
questions that arise, and
institute periodic check points
to keep things moving. Keep
your business stakeholders
involved and apprised so

Cloud-Based Learning Solutions: Making the Right Choice for Your Enterprise

Section 6

Skillsoft: a global leader in
cloud-based learning

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Cloud-Based Learning Solutions: Making the Right Choice for Your Enterprise Share On

Section 6 Questions?

Skillsoft: a global leader in Contact us to learn
cloud-based learning more at 866-757-3177 or
www.skillsoft.com/Contact-us.asp
We improve the performance of organizations
by improving the performance of their people. 56

Skillsoft is a pioneer in the field of and custom learning programs
learning with a long history of tailored to our customers’ needs.
innovation. Skillsoft provides
cloud-based learning solutions We serve over 6,000 customers
through innovative technology and more than 19,000,000 learners
for our customers worldwide, worldwide and provide continuing,
who range from global enterprises, hands-on support to assist them in
government and education maximizing their ongoing success.
customers to mid-sized and
small businesses. To learn more, visit www.skillsoft.com.

Our courses, books and videos
have been developed by industry-
leading learning experts to ensure
that they build talent and develop
a more knowledgeable, productive
and valuable workforce. Our
customer support teams draw on
a wealth comprehensive learning
e-library to develop both packaged

Cloud-Based Learning Solutions: Making the Right Choice for Your Enterprise

Resources at-a-glance

Section 1 Asset Type URL Share On
White Paper www.skillsoft.com/LearnCloud
Title Video www.skillsoft.com/Areva Audience
Learning in the Cloud: 10 Factors to Consider HR, L&D, IT
White Paper www.skillsoft.com/TalentCrisis HR, L&D, Procurement
Areva on ILT course-to-elearning HR, L&D, Business Unit Leader
course conversion White Paper www.skillsoft.com/5Calls HR, L&D, IT
HR, L&D, Business Unit Leader
Challenge the Status Quo with a Smarter White Paper www.skillsoft.com/8Truths HR, L&D
Approach to the Global Talent Crisis Video www.skillsoft.com/Hitachi
Audience
Five Calls to Make When Developing a Mobile URL HR, L&D
Learning Strategy www.skillsoft.com/Measure HR, L&D, Business
www.skillsoft.com/IR Unit Leader
The Eight Truths of Social Learning. Now.
Continued on next page
Hitachi on the decision to build or buy
57
Section 2 Asset Type
Blog Post
Title Case Study
Why do you want a measurement strategy?

Ingersoll Rand: Enhancing a learning culture
through focused objectives