Disruption in Tertiary Education – Harvard in the clouds

Technological disruption and the rise of MOOCs are forcing traditional universities to rethink centuries-old teaching models.

Dhanu Narenthiran · Venture Insights1 April 2017Period: April 201712 min read

Last updated 10 June 2026

A$34B→

Total Australian higher education industry spending (FY14)

40%↑

Proportion of Australian jobs at risk of automation by 2030

Locked

+1more stats

Companies covered:CourseraedXUdacityGoogleMicrosoftBMWKhan AcademyFutureLearnLinkedInLynda.comUdemy

Abstract

This report analyses the significant disruption occurring within the Australian higher education sector, an industry that generated A$34B in FY14. It examines how technological advancements, increasing device penetration, and the democratisation of information are driving the rise of Massive Open Online Courses (MOOCs). The analysis explores two potential future scenarios: one where traditional universities maintain control by integrating digital methodologies, and another where employer-backed MOOC providers disrupt the long-standing dominance of established institutions through targeted, job-specific skills training.

Key Takeaways

The Australian higher education market generated A$34B in FY14, with public universities accounting for $27.7B or 80% of total revenue.
Education is Australia's third-largest export, contributing A$19.2B in 2015 and growing at a rate of 13% year-on-year.
Automation poses a significant threat to the workforce, with 5 million Australian jobs (40% of current roles) likely to be automated by 2030.

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Frequently Asked Questions

The sector is a significant economic engine, generating A$34B in total spending in FY14 and contributing A$19.2B to Australian exports in 2015. The transition to cloud-based classrooms requires robust digital platforms to support this massive scale of economic activity.

Global enrollment in Massive Open Online Courses (MOOCs) exceeded 58 million students by 2016, driven by high device penetration and the democratisation of information. This shift represents a fundamental restructuring of an industry that has remained largely unchanged for centuries.

Public universities are highly vulnerable, as 41% of their revenue currently relies on government grants. They face direct competition from employer-backed MOOC providers who are targeting the 40% of Australian jobs at risk of automation by 2030 with specific, job-ready skills training.

Disruption in Tertiary Education – Harvard in the clouds

Abstract

Key Takeaways

Frequently Asked Questions

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