Part 1: The EdTech Landscape is Changing—Are Schools Losing Control?
Artificial Intelligence (AI) is fundamentally transforming software development, ushering in a new era of technology that is redefining how applications are created and utilized. This has sparked conversation across a number of places in my recent travels that is heralding the End of SaaS (Software as a Service), where AI-driven agents and automation are poised to outpace traditional software solutions. While I haven't been hearing these conversations in the education space, schools are very much downstream of this potential disruption as schools have grown increasingly dependent on consolidated SaaS platforms—often at the cost of flexibility, customization, and autonomy.
The Problem: Consolidation in EdTech
If you've been in education for 10-15 years you've seen first-hand the phenomenon that I'm about to articulate. The EdTech landscape has undergone a wave of consolidation, with smaller companies being absorbed into larger entities, limiting competition and reducing the variety of tools available to educators. Jack McDermott details the process of this consolidation in great detail in his article Visualizing Consolidation in the K-12 Edtech Industry where he follows the start and development of a couple of the largest providers in the edtech space Rennaissance Learning and Power School.
Through his work, he illustrates how corporate consolidation has risen dramatically in education. Rennaissance (15) and Power School (27) represent what was once 42 separate companies with bursts of M&A (mergers and acquisitions) at times when private investment or equity became available.
While these acquisitions promise integrated, seamless experiences, they also shrink the field of options available to schools, making it harder to find tools tailored to their specific needs.
In addition, there are a host of other issues that schools now face including:
Security Concerns: The centralization of student and faculty data under a handful of major EdTech providers has created an attractive target for cyber threats. The recent data breach at PowerSchool, which compromised the personal information of millions of students and educators, illustrates the inherent risks of placing too much reliance on a single provider. Schools are left in a precarious position, dependent on vendors whose security policies may not align with their needs.
Homogenization of Tools: As EdTech firms grow, their products often become broader in scope to appeal to larger markets. This results in one-size-fits-all solutions that fail to accommodate the diverse pedagogical needs of different institutions. The result? A growing disconnect between what schools need and what vendors are willing to offer.
Cost & Vendor Lock-In: With fewer competitors in the market, major EdTech providers hold significant leverage over pricing and contracts. Schools locked into long-term agreements often struggle to pivot to new, potentially better tools without incurring steep financial penalties.
The AI Factor: How AI is Disrupting Traditional SaaS
While it can be full of noise, Twitter appears to be the central nervous system of AI activity where developers and technology explorers share the latest on the bleeding edge of technology. In my travels, I am starting to see some patterns merge with ones that I think are going largely unnoticed in education. AI will have profound impacts on the future direction of software and education is no exception. What might we expect? Some initial thoughts:
AI as a Teacher’s Assistant: AI-driven agents are stepping in to automate routine tasks— providing feedback, adjusting learner pathways, and even facilitating student engagement. These tools offer a level of responsiveness and adaptability that traditional software simply cannot match, reducing administrative burdens and freeing educators to focus on higher-value interactions with students.
The Future of Student Data: As more learning takes place in AI-enhanced environments, questions around data ownership and security become more pressing. When student data is concentrated within a handful of large, for-profit entities, schools face significant risks—ranging from privacy breaches to sudden shifts in business models that leave them scrambling for alternatives.
Customization at Scale: AI is greatly reducing the barrier to building on the web. Low code and no code solutions are becoming increasingly accessible and easy to use and could present a real pathway forward for anyone to create their own tools to solve their own problems. We're at the precipe of a new era of the web.
Closing Thoughts
The consolidation of the EdTech market poses significant challenges for schools striving to maintain control over their learning environments and having access to the right tools at the right time. The emergence of AI-driven tools offers a compelling alternative. Rather than relying on a handful of dominant players, schools can leverage AI and no-code development to craft solutions that are uniquely suited to their needs.
The landscape is shifting, and the question isn’t whether schools will adapt—but how quickly they can embrace the change. In Part 2, we’ll explore how educators and institutions can harness AI-driven, no-code, and open-source tools to reclaim control, reimagine digital learning, and build a more resilient educational ecosystem.
sync up soon
mike
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