Learning Management System Cost

When looking to integrate a learning management system, many companies consider only initial costs. But the truth is that every LMS takes time and money, and calculating the actual learning management system cost can be a complex task. Sometimes the integration of a ready-made solution appears even more expensive than custom development.



Break the Real Learning Management System Cost

For many companies, the decision to change the learning management system is easy. In fact, the Brandon Hall Group survey shows that 44% of organizations are dissatisfied with the existing LMS and 48% are exploring new learning technologies. The decision to integrate the software is easy: when trying to decide which LMS to buy, the difficult part appears. The key to this decision is the cost of learning management systems-the same Brandon Hall Group study found that systems accounted for 38 percent of the average learning technology budget.

When deciding to change or integrate the software, many companies consider only the initial and monetary costs of potential products. The reality is that the initial and hidden costs are too much when converting the system - and these costs can include time and money.


This is a simple example in the market. A 500-employee company is looking to upgrade to a solution with complete analytics and customization options and narrowing its options for open-source Moodle and cloud-based eCoach. The management examines two systems and sees that Moodle is free, while eCoach costs $ 699 per month. They made a logical decision and then turned to Moodle. But a few months later, after the "free" LMS sank thousands of dollars and countless hours, the company lamented its decision.

Tickets can be sold so cheap, attracting potential customers, and then raise the cost after cost increases, until it is completely different from the original price,products are also bundled with the hidden costs of many organizations.


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Pricing Model

The most obvious cost of software is its pricing model. Learning management systems can be broadly divided into two categories:

  • Cloud-based
  • Self-hosting

Each category has a different pricing method.

Cloud-Based - The cloud-based learning management system may be paying for the user, paying for the use, or charging only a license fee. Pay-per-user for how to work in one of two ways: they can use the LMS for each registered user to enter each user or practical cooperation with LMS LMS and content organization fees charged is called for 'active' users). An example of a pricing system is $ 5 per month per registered user. Some of the LMSs that use this pricing model are Latitude Learning and Skillsoft. Each use of the payment model charges the organization every time it "uses" the learning management system. These templates can make a big difference because "using" can mean many different things - some examples of common definitions of "use" are: each user charges for each course, and each user visits each of them for each course. The fee charged by the module. The license fee is a one-time fee to access the LMS for a period of time. For example, a provider may charge an annual fee for your LMS, regardless of how many people use the LMS.
Self-Hosted - Self-hosted LMSs are systems that are used by organizations to host them, which can mean that they are hosted in a company or on a third-party server. The pricing model for self-hosted learning management systems encompasses perpetual licensing, periodic licensing, and free templates. A term license is a monthly or annual fee-based learning management system, and a perpetual license has a unique one-time fee to ensure that the learning management system is used when the customer needs it. The free template is open source software such as Moodle, which is accessible to anyone who does not have free access.

The Inverse Relationship Between Hard and Hidden Cost

Often, a learning system with the highest "fixed cost" has the lowest hidden cost. Pay in advance $ 25,000 for access to self-hosted LMSs, which may seem very difficult at first glance, but when you think pricing includes system installation and customization by trained professionals, they are also responsible for employee training and Customer Support continuity, you may find that you have found a bargain. In addition, these difficult costs are easier to predict than hidden costs.

The point here is not that organizations that want to change the learning management system should choose a hard-hit organization. However, the key is that you should pay for all learning management systems in some form: through money, time, or other resources. When trying to change the LMS, many companies consider only hard costs. It's time to start thinking about the productivity of your business software - contact us to discuss custom development.