Until COVID-19 arrived, the business models of the education sector endured decades of operating without disruption.

And IT services provider – and ASX tech stock – Data#3 (ASX:DTL) reckons there is more to come. Data#3 released a report The Future in Forecast about what lies ahead for businesses with technological adaption.

It predicted many changes caused by COVID-19 to hang around such as remote working, cloud-based business models and reliance on cybersecurity.

But the report put a particular focus on how education will be disrupted.

“Learning institutions and environments have evolved tremendously throughout the digital age, and this shows no sign of diminishing,” it said.

“From remote learning to interactive technology tools, education institutions stand to gain just as much as commercial organisations through the effective adoption of digital environments and the appropriate tools.

“Considering the beneficiaries of such adoption – the youth of today and global workforce of tomorrow – the stakes for effective digitisation and adoption within schools are high.”

Dats#3’s predictions included:

    • Increased use of virtual reality
    • “Blended learning delivery models” which would involve a mix of remote learning and lectures, although less of the latter
    • Learning applications to be delivered in Software as a Service (SaaS) of cloud models.

 

ASX stocks to benefit

It goes without saying the ASX’s cohort of edtech stocks will benefit from increased adoption of technology in education.

Two of these edtech stocks are 3P Learning (ASX:3PL) and OpenLearning (ASX:OLL) which online educational programs. The latter offers theirs under a SaaS model.

There’s also digital textbook provider ReadCloud (ASX:RCL) and exam tech stock Janison Education (ASX:JAN).

If predictions about virtual reality (VR) come true then another stock that might benefit is Vection (ASX:VR1). It’s not only the only ASX stock in VR but according to the company, it’s the only global stock focused on VR for enterprise use.

At the moment its primary business is to help engineers, especially after it acquired VR platform Mindesk last year. But its CEO Gianmarco Orgnoni told Stockhead last year Vection open to other opportunities that might come its way.

As for predictions about increased reliance on cloud computing, this would benefit several stocks, particularly data centre plays NextDC (ASX:NXT), DXN (ASX:DXN) and recently listed DC Two (ASX:DC2).

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