How OpenLearning’s New 5-Year Deal Could Transform Vocational Education
OpenLearning Limited has inked a five-year SaaS agreement with Education Centre of Australia, committing to support at least 2,500 students annually with its AI-powered learning platform. The deal highlights OpenLearning’s growing footprint in vocational and professional education sectors.
- 5-year usage-based SaaS contract with Education Centre of Australia
- Minimum A$155,000 revenue guaranteed over contract term
- Platform to serve at least 2,500 students annually across multiple colleges
- ECA’s substantial shareholding and board representation noted
- Focus on AI innovation and outcome-based assessments
OpenLearning’s New Partnership
OpenLearning Limited (ASX, OLL), an AI-driven learning management system provider, has formalised a five-year software-as-a-service (SaaS) agreement with Education Centre of Australia (ECA). The contract guarantees a minimum revenue of A$155,000 over the term, based on servicing at least 2,500 unique students annually. This agreement marks a strategic step for OpenLearning as it deepens its engagement with vocational and professional education providers.
Why ECA Chose OpenLearning
After evaluating several LMS options, ECA selected OpenLearning for its scalability and innovative AI features, particularly its examination and outcome-based assessment tools. The platform’s ability to support active learning and real-world application aligns well with ECA’s diverse educational offerings, which include ELSIS (English language courses), ECA College (vocational qualifications), and the ECA Professional Year program designed to ready IT graduates for the workforce.
Voices from ECA
Sharon Oh, General Manager of ELSIS and ECA College, emphasised the platform’s role in enhancing the student experience by enabling seamless transitions from academic projects to workplace applications. Meanwhile, Luciano D’Ambrosi, General Manager of ECA Professional Year, highlighted the platform’s interactive nature, which fosters collaboration, mentor support, and active learning; key elements for preparing agile IT professionals.
Governance and Strategic Implications
Notably, ECA holds a significant shareholding in OpenLearning, with representation on its board. The agreement was reviewed and approved by the OpenLearning Board, excluding the conflicted director from ECA. While the minimum fees are not currently material to OpenLearning’s financials, the partnership underscores the strategic value of aligning with a major shareholder and expanding the platform’s footprint in Australian higher education.
Looking Ahead
With the agreement effective from September 2025, OpenLearning’s revenue from this contract will scale with student usage beyond the minimum threshold. The deal also reinforces OpenLearning’s position in the competitive education technology landscape, particularly as it continues to innovate with AI-powered tools that meet evolving educational needs.
Bottom Line?
This deal cements OpenLearning’s foothold in vocational education, but future growth hinges on expanding student adoption beyond the minimum contract terms.
Questions in the middle?
- How quickly will student usage exceed the minimum 2,500 threshold to boost revenue?
- Will OpenLearning secure similar agreements with other major education providers?
- How will AI-driven features evolve to maintain competitive advantage in LMS offerings?
