The Great EdTech Consolidation. Is it Coming?

Are we going to experience a Great EdTech Consolidation? Yep, but also a shift. 

As the education sector evolves, we are witnessing a significant consolidation in the global EdTech market. This is particularly relevant as schools and districts around the world anticipate a reduction in their EdTech spending due to funding cliffs, like ESSER, and shrinking budgets. 

But we are also seeing a shift to Safety Technology and AI solutions focusing on automation, efficiency, effectiveness, and adapting learning technologies. 

I am not sure we have ever experienced a shrinking EdTech Market and an EdTech Arms Race at the same time.

And I predict that it is going to get very interesting. 

All over the world, schools and districts who leapt at numerous technologies to solve COVID-related problems of practice, are going through the process of consolidating down to true Return on Instruction and Investment (ROII) producing technologies and deduplicating these technologies where they can. 

In other words, they are going to start doing more with less 

and if they have more than one solution, that does similar things, they are consolidating down to one. 

This in turn, will cause a consolidation of the overall EdTech market as some will rise to the top and others will be gobbled up or cease to exist. 

At the exact same time, safety technologies and AI technologies are taking off in a big way.

Legislation is being passed to provide schools and districts with funds specifically for safety and security technology enhancements. 

And some very promising AI technologies are starting to overtake traditional applications, promising better pricing and ROII. 

For Edtech providers that are worried about the impacts here are some tips from my perspective: 

1. Reintroduce Yourself (and your value) to Your Current Customers. Throughout the past few years, many solutions with amazing capabilities were purchased by schools and districts who did not realize the full value of what they were purchasing. They might have only wanted, or needed, part of a solution but bought the whole thing, or some schools might have bought solutions X while others schools in the same district bought solution Y. Moving forward educators will need to know why your solution is the one to standardize to.

   
   

2. Understand the Shift to Centralization and Standardization That is Happening. During COVID, many districts relaxed the “rules” on buying technology solutions and let schools and departments buy what they needed to get through the crisis. However, central offices are recentralizing technology spend. If you have never met with the central office staff, and have only worked directly with schools, it's time to meet the CIO, CTO, Tech Director, etc. 

   
   

3. Leverage Data and Analytics: Utilize data analytics to understand the usage and effectiveness of your products. Data-driven insights can help you demonstrate the value of your product to decision-makers in the education sector.

   
   

4. Focus on Integration and Compatibility: Ensure your technology integrates seamlessly with existing systems. Interoperability is more than a buzzword. It’s the only way that school districts are going to survive moving forward. Many of us do not have the staffing to build and maintain integrations, and this heavily drives our purchasing decisions. 

   
   

5. Prioritize Usefulness and Ease of Use. During the pandemic, schools and districts may have been willing to accept decreased ease of use if a solution was seen as very useful. And some may have even gone with solutions that were easy to use even if they were not very useful. However, Usefulness and Ease of Use drive adoption. Adoption drives ROII.  And ROII drives the repurchasing of a solution. 

Let's Wrap IT Up

The EdTech landscape is at a crossroads, marked by both consolidation and remarkable technological advancements. I believe that the key for solution providers in this evolving market is adaptability and a deep understanding of the changing needs of educational institutions. 

As we navigate this transition, our focus should be on creating solutions that not only meet the immediate requirements of schools and districts but also pave the way for future innovations in learning and teaching. 

The journey ahead is challenging yet filled with opportunities for those who are prepared to rethink, reimagine, and reinvent their approach to EdTech. 

I'm excited to embrace this change, recognizing that the ultimate goal remains the same: enhancing education and empowering learners and educators.