Udacity is now valued at over $1b. This seems a long way from the dream of open (libre and free) learning of the early MOOC pioneers (pre-Thrun):
“Earlier this year, Udacity’s revenue from Nanodegrees was growing nearly 30% month over month and the initiative is profitable, according to Thrun. According to one source, Udacity was on track to make $24 million this year. Udacity also just became a unicorn—a startup valued at or above $1 billion—in its most recent $105 million funding round in 2015.”
This should also be a wake-up call to universities that believe their value is measurable by the employability of their graduates. Udacity has commitments from huge companies like IBM, BMW, Tata and others to accept its nanodegree graduates. Nanodegrees are becoming a serious currency in the job market, at lower cost and higher productivity than anything universities can match, with all the notable benefits of online delivery and timeframes that make lifelong learning of up-to-date competencies a reality, not an aspiration. If we don’t adapt to this then universities are, if not dead in the water, definitely at risk of becoming of less relevance.
I recently posted a response to Dave Cormier’s question about the goals of education in which I suggested that our educational institutions play an important sustaining and generative role in cultures – not just in large-scale societal level culture, but in the myriad overlapping and contained cultures within societies. Though I have reservations about the risks of government involvement in education, I am a little fearful but also a little intrigued about what happens when private organizations start to make a substantial contribution to that role. There have always been a few such cases, and that has always been a useful thing. Having a few alternatives nipping around your heels and introducing fresh ideas helps to keep an ecosystem from stagnating. But this is big scale stuff, and it’s part of a trend that worries me. We are already seeing extremely large contributions to traditional education from private donors like the Gates and Zuckerberg foundations that reinforce dreadful misguided beliefs about what education is, or what it is for. With big funding, these become self-fulfilling beliefs. As long as we can sustain diversity then I think it is not a bad thing, but the massive influence of a few (even well-meaning) individuals with the spending power of nations is very, very dangerous.