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Distributed Learning in the New Economy
While the term e-commerce to many brings to mind the purchase of “atoms” such
as clothing or books, online, in the case of education and training, the real
opportunity is not so much in the commerce of products, in our view, but the
commerce of services. Technology, especially the internet, provides opportunities
for filling unmet education needs, creating the ability to reach more students with
more targeted content at a lower cost. Technology has already begun to infuse all
aspects of education in our country today, from school children who use the
internet to participate in virtual field trips to Africa, to adults who earn master’s
degrees online while juggling family and work responsibilities, to corporate
employees who access up-to-date IT courseware at their desktops.
While the internet has already begun to transform the entire education and training
industry, including the K-12 and corporate training sectors, we believe the
immediate opportunity for investors lies in the postsecondary market.
Power of “.edu”
Education is the fuel for the New Economy, making the concept of a four-year
degree (where learning is limited to a finite period of time) obsolete and lifelong
learning a reality. Unfortunately and ironically, at a time when education is more
important than at any point in our history, it is also becoming less accessible and
more costly.