InformationWeek

ustomer demand for integrated E-learning products sparked more consolidation in the fragmented online-training market last week. Content provider SmartForce LLC acquired learning-management system developer icGlobal Corp., and live E-learning provider Centra Software Inc. bought content-management provider MindLever.com Inc.

The acquisitions address several common concerns among businesses interested in adopting E-learning technology--interoperability, content customization, and firewall issues--and represent a shift toward more complete E-learning systems. Still, "there's no true end-to-end solution out there," says Howard Block, a Bank of America securities equity analyst.

IcGlobal's learning-management system, software that manages Web-based and classroom training, will allow SmartForce to deploy E-learning via company intranets and behind firewalls. "A number of our customers, due to internal IS policies and other reasons, wanted their [learning-management system] inside the firewall," says SmartForce CEO and chairman Greg Priest. SmartForce, with its offerings previously limited to an application service provider model, had to rely on partners for this capability. By bringing the product in-house, SmartForce will circumvent integration challenges that often occur because E-learning standards are still imperfect, Priest says.

With MindLever, Centra will provide increased content customization for companies. That's because Mind-Lever develops software that captures, stores, and tracks learning objects--small modules of online content that can be reused and personalized for specific needs.

While such acquisitions provide increased functionality, they won't necessarily build momentum for much-needed E-learning standards. "While consolidation might speed standards development because fewer players are there," says Robertson Stephens analyst Cynthia Hatstadt, "it might be drawn out as companies focus on integrating technology from their acquisitions and take their eye off the standards issue."