Surviving an Edtech Provider's Acquisition: Advice for Higher Education IT Professionals

Change is a constant in the ever-evolving higher education IT landscape. The commercial technology sector serving higher education stakeholders is characterized by rapid innovation, fierce competition, and frequent corporate restructuring. As educational technology companies launch, merge, undergo acquisitions, or pivot in new directions, the tools and platforms that institutions rely on can shift unexpectedly. For higher education IT professionals, staying ahead of these changes is crucial—not only to ensure the continuity of the educational services offered by their institutions but also to protect their own roles and relevance in an increasingly dynamic ecosystem.

Understanding the Landscape: The Impact of Edtech Acquisitions

When an educational technology provider changes ownership, the ripple effects can be far-reaching and profound. Service agreements may be altered, software functionality can change unexpectedly, and, in some cases, products may be discontinued. These shifts can have several consequences.

1. Disruptions in services and support
2. Unexpected costs and budget reallocations
3. The need for rapid adaptation of systems and processes
4. Potential data migration and security challenges
5. The need to retrain staff and end users

Higher education IT professionals must be able to anticipate these changes so they can effectively prepare for and respond to them. The stakes are high: a poorly managed transition results in lost productivity and frustrated users. It could also damage the reputation of the IT department and the institution.

Building a "Future-Safe" IT Infrastructure

To safeguard against fallout resulting from education technology company mergers and acquisitions, higher education IT professionals should develop a multifaceted approach that combines awareness, relationship building, and strategic planning. Avoiding every potential problem is unrealistic; however, increasing the likelihood of a smoother transition is possible. The following key strategies can help IT professionals build a more resilient IT infrastructure:

Know Contracts Inside and Out

Understanding the terms of your service agreements is the first line of defense against unexpected changes. Pay close attention to the following:

• Service continuity requirements clauses
• Data ownership, migration, and destruction terms
• Exit strategies and transition support obligations
• Change of control provisions
• Service-level agreements (SLAs) and performance metrics

By identifying these critical elements in advance, IT professionals can better anticipate and mitigate potential disruptions. Consider working with the institution's legal team to review contracts and negotiate terms that provide maximum protection and flexibility.

Diversify the IT Service Portfolio

If feasible, avoid overreliance on a single vendor by distributing services among multiple providers. Following are a few strategies to consider:

• Use different providers for distinct services (e.g., learning management systems, student information systems, and research computing).
• Stagger contract end dates to prevent simultaneous disruptions.
• Explore open-source alternatives alongside proprietary solutions.

This approach reduces risk, provides leverage in negotiations and transitions, and fosters a more competitive environment among vendors, potentially leading to better service support.

Evaluate Vendors

Staying informed about the financial health and market position of critical technology service providers can help IT teams understand how each company compares to its peers, as well as each provider's specific strengths and potential weaknesses. Here are some ways to do this:

• Perform periodic reviews of service providers' financial health. Shareholder reports are a great way to stay informed about publicly traded companies, and industry research and news summaries provide insights about privately held firms. Companies like Gartner and Dun & Bradstreet also offer helpful information and resources.
• Compare providers to their competitors in terms of features, support, and market share.
• Stay abreast of industry trends and potential acquisition targets.
• Monitor venture capital and private equity activity in the commercial technology sector.

Conducting ongoing assessments can help IT teams anticipate changes and make informed decisions about technology partnerships. Establishing a formal vendor management program within the IT department can systematize this process.

Prioritize Data Portability and Interoperability

Repopulating forms and files whenever there is a platform change is time-consuming and frustrating. Here are a few ways to make moving institutional data between platforms easier:

• Choose solutions that are built on open standards and APIs.
• Maintain ownership and easy exportability of institutional data.
• Check data interoperability among mission-critical platforms regularly.
• Develop and maintain comprehensive data dictionaries and schemas.

Data portability reduces vendor lock-in, facilitates easier integration between systems, and supports data-driven decision-making across the institution.

Develop and Practice Contingency Plans

Over the last several years, weather-related emergencies have underscored the importance of being as prepared as possible for the unexpected. Taking the following steps can help ensure IT teams are ready in the event of a weather-related service disruption.

• Create and maintain backup plans for critical systems.
• Review and update backup plans regularly.
• Conduct drills to ensure that teams and backup systems are ready.
• Establish clear roles and responsibilities for emergency response.
• Develop communication templates for various scenarios.

By rehearsing responses to potential disruptions, IT teams can minimize downtime and maintain service continuity. Including stakeholders from across the institution in the planning process helps to ensure comprehensive coverage.

Develop Internal Capabilities to Respond to Change

Building strong in-house expertise reduces dependence on vendor support. Following are a few ways to strengthen internal proficiency:

• Develop troubleshooting and maintenance skills.
• Foster capabilities for customized solution development.
• Maintain detailed documentation of customizations and integrations.
• Create a culture of continuous learning and skill development.
• Establish a "center of excellence" for key technologies.

These investments provide a safety net while positioning IT professionals as valuable problem solvers within the institution. They can also lead to greater innovation and efficiency as IT team members become more adept at tailoring solutions to meet the specific needs of the institution.

Engage with the User Communities Supported by Vendors

Vendor-supported user communities offer a great way to get the most out of vendor relationships. Here are a few ways to engage with user communities:

• Join user groups and advisory boards.
• Share experiences and insights with other institutions.
• Build relationships with the people who develop and support your products.
• Attend industry conferences and workshops.
• Contribute to open-source projects related to your key technologies.

These connections can provide early insights into potential changes and increase collective influence on service providers. Many of these engagement opportunities also offer IT professionals opportunities for professional development and peer learning. In some cases, they even lead to new professional opportunities.

Implement New Technologies Gradually

When adopting new systems or platforms, phased implementations are generally recommended because they limit risk exposure. Here are a few best practices to follow:

• Maintain parallel systems during transitions when possible.
• Use pilot programs to test and refine before full-scale rollouts.
• Develop comprehensive training programs for end users.
• Establish clear success metrics and evaluate progress regularly.
• Share news of progress with stakeholders regularly.

This measured approach allows for smoother transitions and easier course corrections, if needed. It also facilitates stakeholder buy-in and allows time for cultural adaptation to new technologies.

Design Flexible Enterprise IT Systems

Using middleware and abstraction layers to create an IT architecture that can better accommodate changes can help ease transitions. This approach can even enable IT teams to design critical infrastructure with vendor changes in mind. Following are some strategies for designing flexible enterprise IT systems:

• Reassess and update the IT architecture regularly to maintain agility.
• Embrace cloud and containerization technologies where appropriate.
• Implement a service-oriented architecture approach.

A flexible IT ecosystem is more resilient to external changes and can adapt more quickly to new technologies. It also supports easier integration of new tools and services as they become available.

Enable and Facilitate Open Communications with Vendors and Stakeholders

Fostering strong personal relationships with service providers and institutional stakeholders makes conversations that arise during times of change easier. Here are some suggestions for creating an effective communication structure before it is needed:

• Establish key points of contact within vendor organizations.
• Set clear expectations for communication, including when and how the vendor should provide notifications about changes.
• Keep institutional leaders informed about the potential impacts of market shifts.
• Develop a communication strategy for various scenarios.
• Solicit feedback regularly from end users regarding their needs and pain points.

Open lines of communication can provide early warnings of significant changes to or within vendor organizations and help IT teams navigate transitions more smoothly. Proactive and transparent communication can also help increase the trustworthiness and credibility of the IT department across the institution.

Preparing for the Future

In an industry where mergers and acquisitions are common, preparation is the key to resilience. Here are a few more strategies to help IT departments plan for and withstand change:

Embrace a Portfolio Management Mindset

View institutional technology tools and services as a portfolio that needs to be managed actively. Assess risks and rewards, innovation and stability, and cost and value regularly. Be prepared to divest from underperforming or high-risk solutions and reinvest in areas of strategic importance.

Cultivate Innovation Partnerships

Look beyond traditional vendor relationships and explore partnerships with startups, research institutions, and innovation labs. These collaborations can provide early access to cutting-edge technologies and help institutions stay ahead of the curve.

Develop a Technology Roadmap

Create a long-term vision for the institutional technology ecosystem. Align this roadmap with the institution's strategic plan, and use it to guide decisions about technology adoption and vendor selection.

Invest in Change Management

Technological changes often require cultural and organizational changes as well. Investing in change management practices can help institutions adapt to new technologies and processes more smoothly.

Stay Informed about Regulatory Changes

Keep abreast of changes in data privacy laws, accessibility requirements, and other regulations that may impact your technology choices. Ensure that vendors are committed to compliance and can adapt to changing regulatory landscapes.

Navigating the Future with Confidence

Change is inevitable. The educational technology landscape is driven by innovation, market forces, and changing stakeholder needs. To be successful during periods of corporate transition, higher education IT professionals must develop a keen awareness of industry trends, cultivate strong relationships with internal institutional stakeholders and outside vendors, and maintain a flexible approach. While preventing changes from occurring may not be possible, IT professionals can mitigate the impacts resulting from shifts in technology company ownership by planning ahead.

Implementing the strategies outlined above can help IT teams create a resilient IT ecosystem that is prepared for whatever the future holds and position the IT department as a strategic partner that is integral to the success of the institution. By learning to skillfully and confidently navigate the complex and evolving world of educational technology, potential disruptions can become opportunities for growth and innovation.

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Ellen D. Wagner is Founder and Managing Partner at North Coast EduVisory LLC.