Blog
Expert persepectives driving innovation and success in education technology.
Understanding the Higher Education Landscape (Part 2 of 2)
Beth Davis, DSS VP & General Manager Climb CS US
12-09-2025
This post is part of our comprehensive 6 part series on Education SaaS channel sales:
-
The Education Market Decoded: What Vendors Need to Know to Succeed
-
Understanding The Higher Education Landscape Part I & Part II (this blog)
-
K12 Industry Insights
-
EDU Events Insights
Segments, Budgets, and Why Channel Partners Matter More Than Ever
In Part 1 of our higher education insights, we broke down the major institution types and why segmentation is the key to entering higher ed strategically.
Once you know the segments, the next question is where the opportunity actually lives. And that depends entirely on knowing how segments behave, how budgets are structured, and where your product fits in an environment that does not buy the way traditional B2B markets do.
The Shifting Postsecondary Landscape
The changing market dynamics of workforce readiness, shifting demand for entry level jobs due to AI, and drop in undergraduate enrollment (down 8% since 2019 (NCES)) are all driving change for postsecondary education in the US. Skills-based training, short-term credentials, employer-sponsored programs, and Short-Term Pell are reshaping priorities around speed, relevance, and workforce alignment.
Colleges are partnering with employers and state agencies at a scale not seen before. Google Career Certificates. Amazon’s Career Choice. Colorado’s Care Forward. These skills-and-workforce aligned programs are no longer alternatives, they are becoming widespread and accepted routes connecting education to employment. We’ll dive deeper into the skills-based segment in a future post. For now, here’s the point:
If you don’t understand how each segment behaves, the pressures they are facing, and how each segment budgets, you can’t position your solution for success.
Why Segmentation Matters
Higher ed isn’t one market. It’s a collection of markets that happen to share a taxonomy. Flagships, regionals, community colleges, private nonprofits, and online institutions each have distinct governance models, buying patterns, and funding sources.
When vendors understand those differences, they can:
-
Target precisely
-
Align to the right budget owner
-
Avoid getting trapped between committees
-
Position ROI in the language each segment uses
-
Build multi-year relationships instead of one-year pursuits
And this is exactly where channel partners change the game.
Climb EDU uses decades of institutional data and reseller experience to help vendors understand what each segment buys, how budgets move, when procurement opens, and how to translate institutional nuance into an actual go-to-market strategy.
No vendor should have to guess which segment their product resonates with — or why.
That’s what the channel is built for.
How IT Budgets Actually Break Down
Even as AI, cloud migration, and modernization pressures rise, the structure of central IT budgets has remained surprisingly stable. Based on IPEDS/NCES finance data and EDUCAUSE category definitions, here’s the high-level breakdown:
Category | Average Share of IT Budget | Primary Focus |
|---|---|---|
Enterprise IT (ERP, CRM, HR) | 16% | Efficiency, integration, compliance |
Academic & Instructional Tech | 17% | Teaching, learning, digital engagement |
Infrastructure | 19% | Scalability, modernization |
Security & Compliance | 10% | Cybersecurity, identity, governance |
End-User Support | 13% | Devices, help desk, continuity |
Strategic Projects & Contracts | 25% | Innovation, analytics, transformation |
Across every category, institutions face tradeoffs. Your product doesn’t compete with similar products — it competes with every other dollar the institution could spend.
This is why “strategic projects” look appealing but are often the least predictable line. For sustainable growth, you need to know which budget category you belong in and how that category is funded at different types of institutions.
Channel partners help vendors map their solutions to those categories — because that’s what determines whether a product gets funded.
How Spending Differs by Segment - Themes and Product Category Focus
Knowing how focus product areas tie to segment specific dynamics is exactly the kind of intelligence channel partners bring to the table.
Public Flagships & Systems
-
Infrastructure-heavy
-
High-performance computing, identity management, research network
-
Cloud modernization + cybersecurity dominate roadmaps
Regional Publics & Community Colleges
-
Student success platforms
-
Retention analytics
-
Enrollment CRMs
-
Workforce-based positioning is especially effective here
Private Nonprofits
-
LMS modernization
-
ERP/HR system upgrades
-
Wi-Fi and classroom tech refresh cycles
Online Institutions & For-Profits
-
Learning management
-
Analytics
-
CRM optimization
-
AI-driven advising
-
Tech spend maps directly to revenue
Knowing these patterns is crucial — and this is exactly the kind of intelligence channel partners bring to the table.
Budget Categories Are Destiny
If I could give vendors one truth about higher ed, it would be this:
No matter how exceptional your product is, it must fit cleanly into a defined campus budget line.
Sometimes brilliant, high-impact products die on campus because they didn’t fit a budget category. That’s it. Not because of the features, price or outcomes, just the budget line. Higher ed does not buy “in-between” products. Round peg, square hole.
Every campus has rigid budget methodologies. Thet don’t flex because your product is innovative, the only flex when:
-
It fits a known budget category
-
That category has available funding
-
A champion can justify it within that category
-
ROI aligns to enrollment, retention, or efficiency
This is where channel partners play an undervalued — but critical — role.
Climb EDU helps vendors identify their true budget category, understand how that category is funded in each segment, and shape institutional language that gets real approval.
The Strategic Context
Presidents, provosts, and CIOs are reframing technology decisions around institutional value:
-
Enrollment growth
-
Retention
-
Workforce outcomes
-
Efficiency gains
-
Compliance and risk
-
Technical debt reduction
This shift creates opportunity — but only for vendors who understand segmentation, budget categories, and the fiscal rhythm of higher ed.
That’s where Climb EDU sits.
Our data, reseller ecosystem, and institutional relationships help vendors:
-
Understand which segments to target
-
Position products in the right budget category
-
Time outreach to fiscal cycles
-
Navigate procurement and consortium rules
-
Support customer success and renewal
That’s the multiplier effect of a strong channel partner.
What CIOs Are Prioritizing (EDUCAUSE 2025)
Over the next 18 months, CIOs expect to invest in:
Trend | What It Means | Vendor opportunity |
|---|---|---|
AI & Automation | Top priority; focus on efficiency + responsible use | Workflow automation, chatbots, predictive analytics |
Enrollment & Retention | Undergrad enrollment still down ~8% | Tools tied to persistence, advising, CRM integration |
Cloud Modernization (ERP/SIS) | Majority accelerating modernization | Multi-year migration pathways and risk reduction |
Security & Compliance | Board-level concern | Identity, endpoint security, governance frameworks |
Data Integration & Analytics | Institutions want unified, usable data | Open APIs, interoperability, governance tools |
Flexible Learning & Credentialing | Growth of noncredit/short-term programs | Digital credentials, skills tracking, employer alignment |
These priorities reinforce a clear trend:
Institutions aren’t buying technology, they’re buying outcomes. And channel partners help vendors show that value at the right moment.
The Bottom Line
2026 will reward clarity, timing, and alignment.
Institutions are under pressure to modernize faster, prove ROI sooner, and deliver outcomes that matter to students, employers, and communities.
They’re not just seeking technology.
They’re seeking partners who understand how higher education really works.
That’s the role Climb EDU has played for more than 75 years — translating institutional complexity into a predictable, actionable go-to-market strategy for vendors and resellers. Reach out to me if you want help mapping your solution to the segments and budgets where it will perform best.
%20(2).png)