Instructure started with a single solution, Canvas Learning Management System (LMS), and has grown to become the edtech leader as a next-generation ecosystem. In less than a decade, Canvas disrupted the industry and displaced the previous LMS market leader, who once held a commanding 80 percent market share and now sits at 15 percent market share. There are several reasons why Canvas was able to disrupt the edtech industry.
Unlike competitors, who deployed expensive on-premise solutions for customers, Instructure launched as a nimble SaaS solution committed to open standards. Canvas's flexible and extensible software allowed institutions to customize based on their unique needs. Instructure hired former educators (consistently with over 30 percent of employees coming from the education industry) and built a workforce that understands the needs of educators.
Instructure has organically grown the Instructure Learning Ecosystem, with Canvas LMS serving as the hub of learning for the majority of students in the United States. With close to half of higher education students and a third of K-12 students in the U.S. using Instructure daily, and a growing international market share, Instructure is the consistent hub of learning that students, educators, and professionals will use throughout their lives.
To capitalize on market opportunities, Instructure has acquired several companies over the past few years, since becoming a publicly traded company again. Now a true learning ecosystem, Instructure addresses more market segments than ever. The emergence of the lifelong learner means recent acquisitions of Parchment and previously Concentric Sky, makers of Badgr open enormous opportunities to Instructure as it helps serve the new traditional learner. Credentials have become critically important as these learners take personalized learning journeys and need the ability to demonstrate skill mastery.
Instructure's recent trajectory demonstrates that it's doing more than focusing on one segment of the lifelong learning journey. By building on its home-grown solutions and strategic acquisitions, Instructure is not just the technology that powers learning; it's becoming a true ecosystem of education engineered to span a learner's lifetime.
Instructure is well-positioned to turn each learning experience into an opportunity. For many learners, this opportunity means the possibility of a job or advancing to the next level. While many edtech companies are focused on one aspect of learning, Instructure is the only one positioned to capitalize on these trends to help learners acquire the skills they need to improve their quality of life.
Most learners already engage and spend their time on Canvas LMS. Instructure is the connective tissue for this large audience across segments. Instructure already has most of the top customers. For example, all ten of the top ten universities in the United States use Canvas.
A Vibrant Customer Community
Instructure customers' affinity for the company is second to none. Over time, Canvas has grown into the one LMS that services multiple education segments from K-12 to higher education, non-traditional students or professional learning organizations. Instructure is there for the lifelong learning that happens at each stage, with Canvas at the center of learning experiences for everyone.
With over 900 partners, Instructure's partner network is four times larger than any of its competitors, allowing customers to choose to work with their preferred solutions. Within a year, Instructure has around 50 new partners who are focused on the AI space. With the largest customer base and a vibrant community, Instructure offers other companies compelling partnerships.
Unlocking AI
Instructure is well positioned to ride the second wave of disruption presented by generative AI. With the most users and a higher research and development capacity than its competitors, Instructure can invest in future innovation. Most of the work inside and outside of class is attached to the LMS in one way, shape, or form. Instructure's partners' applications launch billions of times a year through Canvas, as students and teachers spend hours per day on the platform.
- How students can utilize ChatGPT to enhance their understanding of complex subjects or improve their writing skills:
- Personalized learning: ChatGPT can provide students with interactive, personalized learning experiences that can help them understand concepts and retain information better.
- Intelligent Tutoring: ChatGPT can act as an intelligent tutor, providing students with feedback and support as they work through problems and concepts. Its ability to generate human-like text can also be used to create engaging response content, such as interactive stories and flashcards.
- Content Generation: ChatGPT can be used to generate unique educational content by converting content from one modality like a written passage, into others like simulations or screenplays. It can also be used to create content that contrasts 2 opposing positions as a stimulus for learners to develop durable skills like critical thinking.
- Language Learning: ChatGPT can help non-native speakers improve their language skills through interactive conversations, and making content more accessible to them.
The Addition of Parchment to the Instructure Learning Ecosystem
The addition of Parchment to the Instructure Learning Ecosystem means connecting the evidence of learning with the employment opportunities or admissions in other learning opportunities. Parchment is much more than a transcript business. Perhaps the most interesting component of their business is its pathways business, which reduces the friction in enrollment, helps with course and credit transfer, and deals with recruitment initiatives. Adding these abilities to the number one LMS means Instructure will soon have the ability to provide a rich record of a learner's entire academic experience.
Adding Parchment to the Instructure Learning Ecosystem means it can combine the transcript, diploma, badges, and supporting evidence of skill mastery to create a much more in-depth view of a learner's abilities. This gives Instructure access to a whole new set of sales opportunities and a wider total addressable market.
Instructure is the only edtech provider poised to solve these real problems. Many students encounter friction in the system when they attempt to dual enroll, or when they try to transfer credit or find new courses to enroll in. The United States Government Accountability Office reports that the average transfer student loses 43 percent of their transfer credits when moving to a different college or university
This acquisition significantly expands the stakeholders Instructure can serve. Traditionally, it was only K-12 and higher education. Now, Instructure has the capability to serve professional learning audiences.
