In the past, online courses and degree programs were viewed as low quality or financially unsustainable, but a variety of factors are now allowing online programs to flourish. Universities throughout the country are adopting School as a Service (SaaS) programs, which offer a way to build, market, and manage online degree programs. A number of technological advancementsas well as a new generation of tech-savvy studentshave made it easier for professors and students to work together online.

These programs are attractive because they allow students to access higher education in a more affordable, convenient way. Online learning makes it possible for professors and students to share information and work together via collaborative workspaces, chat features, social networking, and mobile devices.

In the last decade, the online education market has grown significantly and actually outpaced university enrollment. The Babson survey found 6.1 million studentsor 31 percent of total post-secondary enrollmentwere taking at least one online college course in Fall 2010. In addition,data from Eduventuressuggests that in 2010, nearly 14 percent of college students took more than 80 percent of their college courses online, and nearly 30 percent of graduate students are enrolled in online classes.

These numbers show the growing popularity of school-as-a-service programs. But which companies are leading the pack? While some have been offering online educational services for years, most have sprung up only recently. Check out a few of the top organizations making waves in SaaS:

1. 2tor

This startup is the first of its kind to offer full degree programs online at top-tier universities, and it comes highly funded. In April, 2tors total investments were just under$97 million. The service partners with universities to help them build, market, and manage their own online degree programs.

2tor creates programs only for top-tier universities and has partnered with just four universities to date the University of Southern California, the University of North Carolina at Chapel Hill, Washington University in St. Louis, and Georgetown University. So far, 2tor has built six online masters degree programs in business, nursing, social work, law, public administration, and education. 2tors exclusivity is allowing it to lead the way as a top-tier SaaS provider.

2. Academic Partnerships

Academic Partnerships works with post-secondary institutions to develop and market online programs, much like other SaaS startups. But this company is distinguished by the fact that it focuses exclusively on public institutions. In the past, public universities werent apt to adopt the online model, but in recent years, theyve been using SaaS to reach a higher number of learners.

Since 2008, Academic Partnerships has partnered with nearly 25 public universities across the country, including Arkansas State University and Ohio University. Its web-based, public model stands to play a significant role in increasing access to higher education for all in the coming years.

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Online education has gotten better. Here are 4 companies that may make you smarter