It seems inevitable in this business that the big fish always seem to want to swallow the smaller ones. Particularly when the smaller ones are attractive catches. In the case of Blackboard, it will be interesting to see if the acquistion serves customers well or simply reduces competition. I've been concerned for the last five years as our annual Blackboard renewals have steadily increased 5-7% a year despite the relative lack of comparable improvement in the product and in the face of tough economic circumstances for customers.
Will the Blackboard acquisition (now Blackboard Collaborate) create a stronger incarnation of Elluminate? We'll hope so as our faculty have yet to find a collaboration product superior to eLive! However, Blackboard will need to demonstrate that this isn't simply a way to reduce the competition and create a smaller competitive environment for their products. Time will tell...
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Spoke to Elluminate folks yesterday. The new Blackboard Collaborate division will operate as an independent division within Blackboard. Maurice Heiblum (current Elluminate CEO) will be the new CEO. Products from both companies (Elluminate and Wimba) will be rolled into the new division and will be sold separately for at least the next 16 mos. Blackboard expects to share with customers the new division's roadmap at EDUCAUSE in October.
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