InformationWeek

IBM plans to make a considerable investment in E-learning. Proponents of distance learning say it can help meet key business goals by allowing companies to quickly train employees and speed delivery of products and services to the markets they serve. "It's a great and growing space, and gaining momentum," says Fred McCrea, a research analyst with Thomas Weisel Partners.

According to E-learning company Hungry Minds Inc., IBM's entrance could provide a big boost to the industry. "We're among the early movers, and we're looking for validation," says Hungry Minds CEO Stuart Skorman. "It takes [a company the size of] IBM doing this to get it off the ground."

The move is also expected to help Lotus deliver on its new strategy in which the company plans to focus on three areas: distance learning, knowledge management, and its core messaging and collaboration software.

"It's my intention to have Lotus established as the franchise player in the knowledge-management and distributed-learning space," says Lotus CEO Al Zollar. The rate of new technology development is outpacing companies' abilities to train workers, he says. Consequently, businesses aren't realizing the benefits of newly implemented technologies as quickly as they should. "We're finding that in some cases, the time to training is exceeding the time to market," Zollar says.