The coming year promises to be transformative for higher education as institutions find new ways to manage enrollment targets, operating costs, and shifting student expectations. Several existing and emerging trends have the potential to alter the higher ed landscape as we know it in 2025.
Disruption isn’t necessarily a bad thing. It often leads to innovation and more efficient ways to meet the needs of students, faculty, and administrators. The good news is we have the tools and the know-how to address these challenges head-on. Institutions focused on building foundational capabilities in the coming months are best positioned to leverage technology effectively and position themselves for continued success.
Here are the trends I predict will significantly impact higher ed this year and what we can do to take advantage of them.
1. More Urgent Digital Transformation Plans
Institutions need access to valid, reliable, and meaningful data to operate effectively. Thousands of schools still rely on proprietary, on-premise student information systems (SIS) with fragmented data sources, which limits their ability to make data-enabled decisions. Given that migrating to cloud-based solutions can take 18+ months, it’s important for schools to start the process now. Although the process is difficult given the significant change management associated with large cloud migrations, it will enable them to operate more efficiently and compete more effectively. I anticipate we’ll see SIS cloud migrations at the top of the priority lists at many institutions.
2. Heightened Focus on Cybersecurity
Cyber attackers have targeted higher education for years because they know they are a rich source of student and institutional data and the digital infrastructures at most schools are outdated. Hackers continue to find new ways to access networks and data, especially as the number of connected devices and applications swells. Institutions need to stay vigilant to cyber threats while also complying with various data privacy laws. I count 18 states with privacy regulations in addition to U.S. federal and European Union requirements. It’s an extremely complex situation only made more difficult by the shortage of cybersecurity professionals, especially at smaller schools. In 2025, institutions will focus on automating network security protocols and finding outside resources to augment their security capabilities.
3. Expanded Use of Shared Services
Smaller schools need access to the same technology and technical expertise as larger schools, just on a reduced scale with a more limited budget. I anticipate that smaller schools will seek strategic partners to manage critical IT and other specialized services to support data access, reliability, and usability. It’s a smart way to reduce costs while maintaining essential day-to-day services, enhancing security protocols, and being prepared for technology advancements.
4. Continuation of Mergers and Acquisitions
Financial pressures and the threat of closures will continue to drive acquisitions of some smaller schools. Mergers create significant challenges to combine the data, applications, and systems of the two institutions. However, the benefits to both sides are worth it in streamlining operations, retaining existing students, and growing enrollment. Given the breadth and depth of our functional and technical expertise, we can help schools to navigate the challenges and drive positive results.
5. Adoption of Data-Enabled Technologies
As institutions embrace digital transformation, they build out the foundation needed to take advantage of data-enabled technologies such as artificial intelligence (AI). With the initial hype of AI behind us, I anticipate in 2025 that schools will start to deploy AI-enabled solutions that feed off rich data sources to personalize recruitment efforts, improve retention, invigorate online classes, and predict demand for course offerings, as a few examples.
6. Refinement of Enrollment and Retention Strategies
The declining number of high school graduates and international enrollments continues to intensify the effort to recruit and retain students. I expect to see schools expand how they leverage data to personalize recruitment campaigns, target secondary audiences (such as adult learners and transfer students), and nurture existing students. The success of this strategy relies heavily on having the right infrastructure in place to support centralized data access, emerging technologies, and analytic tools.
7. Shift to Career-Focused and Flexible Learning Opportunities
Like changing recruitment and retention methods, institutions will continue to adapt their academic programs to meet the evolving needs of the workforce. They will highlight outcomes based on data about job placement rates, alumni success stories, and collaborations with area businesses to illustrate tangible benefits. They will evaluate current course offerings and pivot when it makes sense to expand hybrid learning models, professional development programs, and skill-based credentials. This effort may involve launching new programs in high-demand fields, such as data science and cybersecurity, or retooling existing programs to incorporate emerging technologies.
8. Consolidation of Ed-tech Solution Providers
Many higher education software and service providers have discussed how they could combine forces to serve colleges and universities better. I think we’ll see M&A activity pick up over the next two years. These consolidations will further the need for institutions to standardize business processes and accelerate cloud migrations as legacy systems will eventually become unsupported.
I’m excited about the positive impact these eight trends might make in 2025. Higher education institutions that prioritize foundational improvements by aligning their data, technology, and talent are best suited to successfully address mounting challenges like demographic shifts and affordability concerns.
I can’t wait to see how schools that adopt AI and predictive analytics are able to improve decision-making and enhance student experiences. However, the real breakthrough will come from integrating systems and breaking down data silos. Institutions that invest in building these foundational capabilities will be better positioned to leverage emerging technologies, drive measurable outcomes, and fulfill their mission to support lifelong learners.
— Kim Fahey, CEO Collegis Education
