| Type | Privately Held [1] |
|---|---|
| Industry | Educational Software |
| Founded | Washington, D.C. 1997 |
| Headquarters | Washington, D.C., United States |
| Area served | Worldwide |
| Key people | Michael L. Chasen President, Chief Executive Officer, Director Matthew L. Pittinsky Chairman of the Board |
| Products | Blackboard Learn Blackboard Transact Blackboard Connect Blackboard Mobile Blackboard Collaborate Blackboard Analytics |
| Services | E-Learning Consulting |
| Revenue | US$ 447.32 million (2010)[2] |
| Operating income | US$ 34.02 million (2010)[2] |
| Net income | US$ 16.64 million (2010)[2] |
| Employees | 1780 (Q1 2011)[3] |
| Parent | Providence Equity Partners[4] |
| Website | www.blackboard.com |
Blackboard Inc. (NASDAQ: BBBB) is an enterprise software company with its corporate headquarters in Washington, D.C.[5] and is primarily known as a developer of education software, in particular learning management systems. Blackboard was founded by CEO Michael Chasen and chairman Matthew Pittinsky in 1997 and became a public company in 2004. The company provides education, mobile, communication, and commerce software and related services to clients including education providers, corporations and government organizations. Blackboard's six platforms are: Learn, Transact, Connect, Mobile, Collaborate and Analytics. The company has been a leader in the development of Internet-based education software. As of December 2010[update], Blackboard software and services are used by over 9300 institutions in more than 60 countries.
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Blackboard was founded in 1997 by Michael Chasen and Matthew Pittinsky and began as a consulting firm contracting to the non-profit IMS Global Learning Consortium.[6] Chasen and Pittinsky started Blackboard upon leaving KPMG Consulting where they both had worked as part of the company’s Higher Education Practice.[7] In 1998, the company merged with CourseInfo LLC, a small course management software provider that originated at Cornell University and was founded by Daniel Cane and Stephen Gilfus, creating the second widely-used course management software on the market (preceded by WebCT which was developed starting in 1995 and in widespread use by the end of 1996).[7] The combined company became known as Blackboard Inc. The first line of e-learning products was branded Blackboard CourseInfo LLC,[8] until the CourseInfo brand was dropped in 2000.[9]
In 2001, Blackboard acquired AT&T Campuswide and CEI Special Teams, developers of ID cards that can be used for security and commerce.[10] Blackboard began expansion overseas in the early 2000s, growing to include Asia, Australia and Europe in its service area.[11] As of January 2001, the company was providing its software services to over 1,500 clients.[12] Through a partnership with a Chinese education company, Blackboard also began providing software services to many universities in China.[13] By the late 1990s and early 2000s, Blackboard had become the leading learning management system.[14] Blackboard went public in June 2004 under the stock market ticker BBBB.[15]
In October 2005, Blackboard announced that it was acquiring WebCT Inc., its largest rival in the education software industry.[16] Through the acquisition, Blackboard gained over 1,400 institutional customers as well as 274 employees.[16] In the two years leading to the merger, Blackboard's most significant growth was in the elementary and secondary education client sector.[16] According to market research company Eduventures, the merger with WebCT increased Blackboard's share of the higher-education market to between 65 and 75 percent.[17]
Over the next five years, Blackboard invested in a series of new products and acquisitions, as well as organic growth, to expand the company's product and service portfolio beyond the learning management system market.[18] Among these: Blackboard Connect formed in 2008 from the acquisition of NTI Group[19] and Saf-T-Net Inc.,[20] providers of text message alerts, in 2010; ANGEL Learning, an education software developer whose acquisition expanded Blackboard's client base to nearly 6,000 educational institutions, companies and government agencies, in 2009;[21] Stanford University student-run TerribyClever Design, LLC, whose iPhone application provided the basis for the Blackboard Mobile division to develop the service for other university campuses, in July 2009;[22] Blackboard Collaborate brought together Wimba, Inc. and Elluminate, Inc., in July 2010; Blackboard Analytics formed when Blackboard acquired iStrategy, a data analysis firm, in December 2010;[18] Blackboard Student Services was developed from Presidium Inc., a provider of administrative and academic support services, in January 2011.[23] As of December 2010[update], Blackboard software and services are used by over 9,300 institutions in more than 60 countries.[24]
On July 1, 2011, Blackboard agreed to a $1.64 billion buyout by an investor group led by Providence Equity Partners. The deal is expected to take the company private and retain existing management.[25] Many analysts consider such an acquisition to be controversial, and not in accordance with Providence's track record of investing in products that are useful.
A survey conducted by CUNY's undergraduate studies program, involving 1500 students across the New York City, reveals that Blackboard online application is unfavorable. Students only use it because it is the only option, and claim the web application, is bloated, not intuitive and behind on the times in terms of website design. One undergraduate says, "Sure, it gets the job done. I get access documents and notifications from Professors. But, there are features in Blackboard, that we never use. Mainly because they are hidden within the website, taking as much as 4-5 clicks to reach. Secondly, they seem half-baked, and all-in-all unusable. We hope Blackboard undergoes major changes".
Blackboard Inc. is a provider of enterprise software and mobile applications, communications and commerce services, primarily to the education industry.[26] It is best known as a developer of learning software for higher education, K-12, and professional education institutions. It also offers its products and services to businesses and government organizations.[27] The firm provides its own products and services directly to clients, and also partners with other companies to offer software and services that extend and enhance the Blackboard Learn platform.[28] Since the late 2000s, the company's strategy has been undergoing a change away from reliance on its learning management system, towards greater diversification. Blackboard launched four separately licensed products and complementary services between 2008 and 2011, including communications, mobile, collaboration and analytics tools through technologies gained in the acquisition of companies such as iStrategy, Wimba and Elluminate.[18]
Blackboard operates as a public company, following its initial public offering in 2004.[15] The company is structured into six product platforms, each of which has its own president. Blackboard's leadership comprises president and CEO, Michael L. Chasen, COO, Matthew Small, CFO, John Kinzer, together with the platform presidents. The platform presidents are: Ray Henderson, president of Blackboard Learn; David Marr, president of Blackboard Transact; Edward Miller, president of Blackboard Connect; Maurice Heiblum, president of Blackboard Collaborate; and Kayvon Beykpour, vice president of Blackboard Mobile.[29] The company's headquarters are in Washington, D.C. and it has offices in Asia, Australia, Europe and in several locations in North America.[26]
Early investment for the expansion of Blackboard was raised as venture funding from a number of investors, including Pearson Plc, Dell, AOL, The Carlyle Group and Novak Biddle Venture Partners.[12][30] Blackboard made a profit in its first year, and its sales in 1998 approached US$1 million.[7] Blackboard began reporting its financial results in 2002,[31] and its annual income for that year was $69.2 million,[13] an increase of over $50 million since 2000 when its income was $12.1 million.[11]
In 2004, the company held an initial public offering;[31] sale of shares in the IPO raised an estimated $70 million for Blackboard.[14] Blackboard's end of year financial results for 2004 reported total revenue of $111.4 million and net income of $10 million.[32] In March 2006, Blackboard announced that in 2005 its total revenue was $135.7 million, and net income was $41.9 million.[14] The following year, the company's revenue was $183.1 million, however it experienced a net loss of $10.7 million due to acquisitions during the year.[33]
Over the late 2000s, revenue continued to rise, with a 31% increase in 2007 to $239.4 million total revenue,[34] increasing to $312 million in 2008,[22] and $377 million in 2009.[35] For the financial year 2010, Blackboard reported revenue of $447.32 million and net income of $16.6 million.[2]
The first product to be offered by Blackboard was its course management software, originally launched in 1998.[15][8] The latest version, Blackboard Learn 9.1, was released in April 2010.[36] Blackboard Learn is a learning management system[37] that comprises four modules: a learning system that provides online course delivery and management for institutions; a community and portal system for use in creating online campus communities; a content management system for centralized control over course content; and a system to record and analyze student assessment results.[38][22][39] Blackboard Learn 9.1 combines features from legacy Blackboard versions, ANGEL Learning and WebCT platforms with social learning tools. WebCT's Vista and Campus Edition course management systems continued to be offered following Blackboard's merger with WebCT, however as of April 2011[update] Blackboard had begun phasing these products out.[40] As of September 2011[update], Blackboard continues to support and provides updates to the ANGEL Learning course management product, ANGEL Learning Management Suite 8.0.[41]
Though Blackboard's Learn software is proprietary, developers are able to extend the functionality of the system, and create customized course management and delivery by developing software and applications known as Building Blocks.[9] Building Blocks allows third-party developers to create customizations and extensions for Blackboard Learn through open APIs and web services.[42] The Blackboard Vista and Campus Edition products are extensible through a technology called PowerLinks. In November 2010, Blackboard applications were certified by the IMS Global Learning Consortium to allow instructors and others to share education content and resources across different systems.[43] In 2011, Blackboard launched CourseSites, a free version of its Blackboard Learn and Collaborate software, for which it provides hosting and support.[44]
Blackboard Collaborate launched in July 2010,[18] providing users with web-based video and audio conferencing.[45] It is used by K-12 schools and higher education institutions for professional development, and distance learning through virtual classroom settings where courses are held online and students are able to interact with each other and the course teacher in real time. The platform is also used by businesses for distance learning and for conferencing.[46][47]
Blackboard launched Blackboard Mobile in 2009.[18] The Blackboard Mobile platform provides students with access to teaching and learning content and campus information through native mobile applications.[48] Only a few mobile operating systems have been catered for. There are two applications offered by Blackboard Mobile: Blackboard Mobile Learn, which allows students to access course materials, check grades, and participate in discussions,[49][48] and Blackboard Mobile Central, which provides information about campus life and services.[50]
The company began providing its Blackboard Connect service in 2008,[18] for use by school districts and higher education institutions to send out mass phone, text and e-mail notifications.[22] The service can be used for routine alerts and notifications, academic or instructor notifications, or by school districts and communities to share time-sensitive information, such as in the case of natural disasters and campus emergencies.[51][52]
Blackboard Transact is used at higher education institutions and includes a transaction processing system tied to university ID cards, which can be used for meal plans, vending machines and laundry services, and an e-commerce front end for the transaction system.[53] The Transact system is NFC-compatible and its ID cards use contactless technology.[54] Blackboard Transact also includes a program for off-campus vendors that allow students to pay for goods using their college's campus card.[53] The platform was originally named the Blackboard Commerce Suite.[38][22]
Blackboard Analytics was developed after Blackboard acquired iStrategy, a data analysis firm, in December 2010.[18] The Blackboard Analytics platform is a system for data warehousing and analysis, with applications for educational institutions to analyze student numbers, class scheduling, and financial information. The platform was launched as a business intelligence tool specifically for higher education institutions and uses data from colleges' student information, human resources and financial information systems.[55]
Blackboard's services include: managed hosting, consulting, strategic services, training and student services. Blackboard's managed hosting organization provides web hosting to support clients' IT infrastructure and online learning. Blackboard's first data center opened in August 1999 and as of August 2011[update], Blackboard operates eight data centers in the U.S., Canada, the Netherlands and Australia. In total, the data centers support about 8.5 million active users and approximately 950 education, corporate and government clients worldwide.[56][57] The company also provides services through its strategic consulting group, which offers varying degrees of consulting and training. Its services include customized mobile services for clients, and training and consulting for Blackboard software implementation and use.[58]
In early 2010, Blackboard launched Blackboard Student Services, following the acquisition of Presidium Inc.[59] Student Services provides management services for student admissions and enrollment, financial aid, and student accounts and retention. It also provides IT and helpdesk support to students and faculty for learning management systems.[60]
Since Blackboard was founded in 1997, use of online learning management software by higher education institutions and other organizations has increased rapidly. The company's growth is closely linked with this development in education software.[18] [61] In the late 1990s, Blackboard co-founders Pittinsky and Chasen noticed that there was a trend in higher education towards greater use of Internet-based education programs. According to Pittinsky, at that time, the Internet had not yet had a significant impact on teaching in higher education and Blackboard was founded to develop and market Internet-based learning management software.[7] The education software industry focused on the development of course management applications, particularly those based online. In 1998, Blackboard was a key participant in an IMS Global Consortium project to develop standards in online education,[6] and its Blackboard CourseInfo software became the market leader in providing and managing online learning environments for distance learning and supplementing "traditional" courses.[8] In 1999 Blackboard was the first company to offer a free online classroom, for teachers and professionals to create online courses.[62]
During the early 2000s Blackboard and rival company WebCT held the majority share of the education software market and were leaders in the move by colleges to wider use of online learning applications.[12][61] The services and products offered by learning technology companies diversified, and Blackboard and WebCT began to offer technology packages that provided administrative functions, in addition to online courses.[12]
Since the late 2000s, the increasing use of mobile devices and the appeal of mobile applications to students have become driving factors in the development of mobile learning systems.[49][48] In 2009, Blackboard acquired a company which had developed an iPhone application for students at Stanford University, and made the application available for other campuses and mobile devices.[22][38]
The United States Patent and Trademark Office granted Blackboard with U.S. Patent 6,988,138 for "Internet-based education support system and methods" in January 2006. The patent established Blackboard's claims to certain features of course management systems.[63] The firm announced the patent on July 26, 2006, and on the same day it filed a patent infringement lawsuit against rival education software company Desire2Learn Inc.[63][64] According to news reports, the awarding of the patent and the lawsuit against Desire2Learn led to concerns about patentability in the electronic learning community.
A website, BoycottBlackboard.org, was set up anonymously, calling for a boycott of Blackboard products and offering an online petition to be signed by those who opposed the patent. In addition, some critics of the patent and lawsuit created a Wikipedia entry for the History of virtual learning environments to document existing examples of course management software.[63] The Software Freedom Law Center filed a request with the U.S. Patent Office to re-examine Blackboard's patent in November 2006, and in January 2007 the request was approved on the basis of prior art cited by the Center raising "substantial" questions.[65] To address the concerns raised within the education software and academic communities, in February 2007, Blackboard announced that it had made a pledge to not assert its patent rights against open-source and non-profit software developers.[66][67]
In February 2008, a federal jury in Texas ruled in favor of Blackboard Inc. in its patent infringement suit against Desire2Learn, finding the rival company liable for infringing on Blackboard's patent.[68] One month later, in March 2008, the U.S. Patent Office issued a preliminary decision following its re-examination of Blackboard's patent application, which rejected the 44 claims made by the company. The Patent Office stated that it would give a final decision following a review of the patent.[69]
Following the ruling by the federal jury in February 2008, later that year Desire2Learn lodged an appeal with the United States Court of Appeals for the Federal Circuit. A ruling was made by the Court of Appeals on July 27, 2009 that the 38 patent claims made by Blackboard in its suit against Desire2Learn were invalid.[70] The dispute was resolved, when Blackboard and Desire2Learn announced on December 15, 2009 that each company was settling all ongoing litigation between them and had made a cross-licensing agreement.[71][72] In April 2010, Blackboard abandoned patent 6,988,138, and in November that year the company's legal counsel announced the patent's "official termination" and stated that Blackboard had ended its appeals.[73]