Moodle's market value?

Re: Moodle's market value?

by James Steerpike -
Number of replies: 2
Private equity will want at least a 10% return on their investment in Canvas. Once they pay their staff and commissions, they will need about $250 million in sales and outgoing charges, every year. Something like finding 2 500 universities and corporates every year to pay $100 000 each to buy new software. Or 25 000 institutions to pay $10 000 each year under a maintenance agreement. Or some combination of the two.
Against a product which is free to license. I wouldn't want to put my money on that bet.
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In reply to James Steerpike

Re: Moodle's market value?

by Visvanath Ratnaweera -
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So this "Private Equity" has to suck that much from the education. What is then left for the education?
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In reply to Visvanath Ratnaweera

Re: Moodle's market value?

by Matt Bury -
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Hi Visvanath & James,

One possible scenario may be that Canvas may be used as a gateway to access educational content for both students & publishers, i.e. charge for access at both ends. There's a lot of money to be made by being gatekeeper & the profit margins are higher because you don't have to actually produce anything.

Look at academic publishing in general. Elsevier make 40%+ profit margins from doing nothing more than providing an automated online repository system for published journal articles. Universities & their staff do all the work & find the money to do the actual research, write the papers, do the editorial work, do the peer-review, etc.. Then Elsevier & others charge extortionate fees to universities for access to those papers.

Imagine if they could do something similar with online educational resources? Pearson Education are already trying but running into difficulties. Maybe there's an opportunity for Instructure there?

I seriously hope I'm not giving anyone ideas sad

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