How Data, Tech and Talent Will Define Higher Ed in 2025

By Kim Fahey, CEO, Collegis Education

As 2024 draws to a close, the higher education landscape reflects a year of both significant challenges and noteworthy achievements. Institutions have embraced innovative strategies to overcome enrollment declines, enhance operational efficiency, and leverage technology to deliver impactful student experiences. Many schools reported double-digit enrollment growth across various student populations, including first-year, transfer, and graduate students, showcasing the power of adaptability and forward-thinking solutions.

However, these wins are also obstacles that higher education institutions must continuously tackle with agile and nimble solutions to bolster enrollment and leverage data, technology and talent to effectively optimize and enhance the learner experience. Institutions that continue to innovate, adapt, and collaborate will position themselves for success as they navigate the top trends we expect to see over the next year.

1. Mergers Will Accelerate. And So, Will the Complexity
Financial challenges continue to plague small colleges and universities, making mergers a likely solution in 2025. Mergers offer a potential lifeline but bring complex challenges, especially around integrating technology.

Aligning disparate systems, software applications, and hardware platforms is no easy task. Potential pitfalls include data integration issues and the need for extensive training on new systems – making it critical that institutions engage technology partners who can navigate the complexities and streamline business processes.

Beyond just aligning technologies, merging institutional cultures is equally vital. Ensuring that faculty, staff, and students from merging schools feel supported can make or break a merger’s success. Transparent communication and change management initiatives will be key to ensuring a smooth transition.

2. The Security Landscape Is Only Getting Tougher
Cybersecurity threats are growing and evolving, which means increasing regulatory scrutiny too. In fact, today there are more than 18 state data privacy laws in place. Coupled with stringent federal requirements such as the Gramm-Leach-Bliley Act (GLBA) and international standards like the General Data Protection Regulation (GDPR), schools face mounting pressure to protect sensitive student and faculty data.

For smaller institutions, this added regulatory burden is increasingly challenging due to limited in-house expertise and resources to prevent breaches. Vulnerabilities exploited by increasingly sophisticated attacks, including phishing and social engineering. As we look to 2025, it’s imperative that institutions – large and small – prioritize investing in next-gen security solutions, implement continuous monitoring, and train staff regularly to mitigate these growing risks. Staying ahead of these threats will help protect reputation and maintain trust.

3. Cloud Migration Will No Longer Be Optional
While the cloud has long been touted as the future of higher education technology, many institutions still rely on expensive, on-premise systems. These legacy environments are slow to scale and can’t fully leverage the latest technological innovations. Not only does the cloud offer enhanced flexibility, scalability, and security, but it also future-proofs institutions, allowing them to embrace the latest technological advancements.

But the time to act is now. Cloud migration can take upwards of 18 months, depending on the size and complexity of the current systems, so institutions that continue to delay this transition will find themselves at a disadvantage and struggling to keep up. However, those who get ahead of the curve will reap the benefits of a modernized infrastructure that supports operational efficiency and the student experience.

4. Shared Services Will Help Offset Costs
Smaller institutions face the same technological demands as larger universities but often lack the budget and resources to build the infrastructure. In response, shared services and consortium models are gaining traction, allowing schools to pool resources, reduce costs, and share expertise. These models allow multiple institutions to collectively purchase software, share data centers, and leverage cloud solutions, increasing purchasing power and access to cutting-edge technologies.

As financial pressures grow, embracing shared services will become a necessity for many institutions. Schools adopting this model will better compete with larger institutions and increase resilience in a rapidly changing landscape.

5. EdTech Consolidation Could Provide Greater Impact
Consolidation within the edtech industry will continue to accelerate as larger players acquire smaller, niche companies. On the surface, this trend promises streamlined technology solutions and integrated platforms for student management, learning, and analytics.

However, whether consolidation is good for schools is yet to be seen. While consolidation can lead to improved efficiency and greater interoperability, it also poses a risk as some recent mergers and acquisitions have resulted in poorer customer service. Schools will need to carefully assess the long-term impact of these acquisitions, weighing the pros of integrated platforms and potential downsides.

As we look ahead to 2025, the momentum gained last year serves as a strong foundation for continued advancement. By building on the past year’s successes and addressing the challenges ahead, schools can continue to thrive in a dynamic educational landscape. The key will be bold, forward-thinking strategies prioritizing innovation, efficiency, and collaboration, enabling higher education to adapt and excel in supporting the entire student lifecycle in an increasingly tech-driven world.