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Cornerstone Continues to Invest in Learning Suite With Acquisition of Saba

Cornerstone is acquiring Saba, a learning management system, to further invest in its learning offerings and gain reach in the market. With this acquisition, the organization intends to accelerate product development.

It will do this through:

  • Larger product teams, specifically the research and development team.
  • Increased user base, which will help increase revenues.

Both the CEO of Cornerstone, Adam Miller, and the CEO of Saba, Phil Saunders, point out the alignment between the two organizations in terms of a shared vision and goal of developing people.

Source: Cornerstone at SoftwareReviews

According to Josh Bersin, this decision has a variety of positive implications, such as:

  • Focusing on innovation as a result of increased talent in the product team.
  • Filling out its C-suite as Cornerstone will continue to work with Phil Saunders as COO.
  • Making Cornerstone’s Learning Suite highly competitive through this investment, along with other acquisitions and product developments over the past year.
  • Remaining a strong player in human capital management (HCM) and learning management systems (LMS) against other large enterprise applications.

Our Take

Cornerstone is heavily investing in the LMS space, based on its two recent acquisitions, Clustree and Saba. Despite having multiple HR suites, it seems that Cornerstone is focusing on its LMS offerings in order to become the leader in this area.

Cornerstone’s decision to further develop its LMS suite aligns with tech talent trends. Within organizations, there is strong interest to build out internal training programs, specifically in the tech industry, as stated in the Info-Tech 2020 IT Talent Trend Report. Employees continually need to upskill due to the changing nature of work. This is forcing organizations to make learning and development a priority, and it may be why HR technology organizations such as Cornerstone are focusing on LMS.

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