John Ambrose, Sr. VP, Strategy & Corporate Development February 6, 2009 Learning in Today’s Economy Learning modalities that will grow the most among Best-In-Class Informal Learning 29% Online Classroom 42% Classroom 42% Mentoring/coaching Self-paced e-learning 20% 40% 56% 59% 60% SkillSoft Overview • SkillSoft is the largest public company in the world with a sole focus on e-Learning • Uniquely positioned to help global enterprises leverage e-learning for maximum business impact • Dual excellence in e-learning content & technology – Content Depth, Breadth & Currency • 27,000+ titles of high-quality e-learning content in 19 languages • Offerings cover wide spectrum of enterprise learning needs with courses, simulations, online books, video, live virtual ILT classes, 24x7 online mentoring – Software as a Service (SaaS) Technology Excellence • SkillPort® - LMS platform for delivering, managing, and reporting on e-learning • OLSA (Open Learning Services Architecture) – web services technology integrating SkillSoft’s advanced learning structures with 3rd-party LMS platforms and portals 3 SkillSoft Corporate Highlights Sales & Service • Large direct sales & support organization with approximately: – 220 commissionable field sales personnel • Serving over 3,000 customer organizations globally – Approximately 50% of the Fortune 500 and 25% of the Global 2000 in business, government and education – Over 10 million licensed users • Telesales focus on SMB market Product Development • Targeted investment of 16%-17% of revenue for R&D initiatives for fiscal 2009 • Systematic customer feedback process ensures market focus 4 Corporate Reach into China and India • Global customer base of 3,000 customers, 10 million end users • Employee population shift continues… – Ex., IBM: 90,000 of 200,000 Global Services employees in India – Ex., Accenture: More employees in India than in US operations Course Localization Strategy • A sustainable content resource to support changing business needs – 3,300+ U.S. English courses – 3,350+ localized courses in 18 languages – ~1,000 new and localized titles to be developed this year – 40 courses recently launched in Chinese Business Skills 1,025+ English titles 2,080+ localized Desktop 430+ English titles 830+ localized • IT Professional 1,730+ English Titles 400+ localized Legal Compliance 70+ English titles ES&H 130+ English titles 80+ localized *Estimated titles, SkillSoft courseware libraries, November 2008. 6 Books24x7 On-Demand Solution Content: Strong breadth & depth – – – – – Thousands of books & white papers 500+ leading publishing imprints Full text, graphics, charts, etc. 22,100+ Titles, with 4,030 new titles in past 12 months First localized collections include: French, German and Spanish Search: Immediate drill-down for just-enough, just-in-time information – – – ITPro 7,430+ titles Patented search technology All content tagged & indexed Precise, relevancy-ranked results OfficeEssentials 425+ titles BusinessPro 4,770+ titles 7 ExecBlueprints Exclusive Executive content 790+ titles ExecSummaries 330+ Top Business Titles EngineeringPro 2,190+ titles FinancePro 880+ titles Well-BeingEssentials 1,030+ titles GovEssentials 1,000+ titles AnalystPerspectives 2,450+ titles ITIL® 16 titles Leadership Development Channel Acquisition of Targeted Learning Corporation • Rich portfolio of video content of top business authors & executive leaders Featured Speakers Include: • 1,000+ on-demand and live video titles, including: – 880+ QuickTalks (3-to-5 minutes) – 150+ Video training programs Pat Lencioni Ken Blanchard Stephen Covey John Kotter Marshall Goldsmith Dan Goleman (20-to-120 minutes) – 6-to-8 live executive leadership web events each year (~90 minutes) • Subtitling available for international audiences Anne Mulcahy Jeff Immelt Sir Howard Stringer CEO, Sony CEO, Xerox CEO, GE 8 India Presence • More than 10 years presence • Direct strategy • Currently in Bangalore, Hyderabad, Mumbai and Delhi Map: w:user::Planemad under Creative Commons 9 India: Observations / Unique Challenges • GDP growth1 impacted by financial crisis – 2009: 5.3-5.7% forecasted – 2008: 7% – 2007: 9% • English is the language of business in India • Internationally-focused vs domestically-focused companies • Culturally great respect for education • Educational system not adequate to prepare volume of workforce needed for pace of growth • Companies investing up to $1,000+ per employee 1Morgan Stanley Report Dec 8, 2008 10 Mainland China • More than 10 years presence • Partner strategy • Ideal market characteristics for e-learning: – – – – Large geographies Large audiences Eager workforce Expanding web access 11 12 China: Observations / Unique Challenges • GDP Growth1 slowing – 2009: 8-9% • Investing in local partner • Higher demand for localized content, rich graphics, interactivity • Acceptability of English – Business Skills vs IT • Books24x7 in Chinese – Government regulated physical book market • More Asian images • Corporate investment in employee development is relatively new concept 1Chief Economist, China State Information Centre, Jan 5, 2009 13 Usage Observations: India, China, USA • Usage in India more constant around the clock 14 Consumption per Session • Reflects difference in combination of language skills and usage mode 15 PDF Chapter Downloads • Suggests India has highest comfort with on-screen reading 16 Top Topic USA India China 1 Project Management Communication Communication 2 Communication Project Management Project Management 3 Time Management Java Emotional Intelligence 4 Java Oracle Business Writing 5 Teamwork Database Time Management 17 Topic Search Terms USA India China 1 Merge, replication Linux+ tuning 2 Pro JavaServer Faces java Struts, framework 3 Beginning, regular,expression SCJP (Sun Certified Java Programmer) Database Design 4 Server+ unix Business Office Applications 5 Javascript C# Service Oriented 18 Opportunities for Content Owners • Participation with global aggregation partner offers fast track – Digital security and usage monitoring – Royalties based on usage • Corporate sales channel reduces piracy concerns • Monetize English language content in both India and China immediately • Seeking sources of local language book content, esp Chinese • Course bundling with book titles • Video content • Hosting options for private branded publisher site 19 Thanks!! John Ambrose jambrose@skillsoft.com 20