Pathlore Lowers Prices To Entice Customers To Expand

In their quest for bigger and better business opportunities, E-learning suppliers have often partnered with other E-learning companies and consulting services firms and acquired complementary software. But Pathlore Software Corp. is going down an uncharted path. The learning-management-system supplier is cutting prices to entice old customers to expand their E-learning systems.

Pathlore says that with its Fast Path program, its present customer base of 2,500 will be offered reduced software licensing fees, up to 12 free online courses (courtesy of content partners MindLeaders, NetG, and SkillSoft), and reduced implementation costs for new E-learning initiatives. Enrollment in the Fast Path program will save participating companies $7 to $28 per user, compared with the original pay structure, says Dave Evangelisti, Pathlore's VP of marketing.

But why would Pathlore slash costs in a booming market? "The average Saba [Software Inc.] deal is significantly larger than that of the average Pathlore deal," says Mike Brennan, an International Data Corp. senior analyst. 'But I don't think this is a panic button." This is a move to enhance the entire market. In this emerging space, the need to demonstrate success for early adopters is critical, Brennan says.

"Perhaps Pathlore is not growing as rapidly as others in the space," says Conny C. Weggen, a W.R. Hambrecht & Co. equity research analyst. But the future still seems bright for Pathlore because it has plenty of customers and has already reached profitability, she says. "And we believe learning-management systems, with their basic foundation for E-learning and offline training management, are evolving as a necessary element to the enterprise infrastructure."