Continuous learning in the modern workforce isn’t just a bonus for a savvy company. Before, managers could get by with a handful of training videos and company policy print-outs. Now, workers demand more powerful tools to equip them for the future. While cloud LMS solutions are a remarkably effective way forward, comparing so many options is an overwhelming task.

In this article, we’ll cover the most common questions. What are the most popular cloud LMS solutions? How do you choose the right one for your business? Read to find out!

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Best Cloud-Based LMS

Based on our research team’s analysis, these are the top five web-based learning management systems:

LearnUpon

LearnUpon is an online learning and development platform that helps train employees, customers and partners. It offers a wide range of capabilities such as course creation, user management, gamification, eCommerce, and reporting and analytics. With various user groups, administrators can segment, contact and automate processes for more than one group at a time. The platform supports both self-paced and instructor-led training.

Run data-based custom reports to monitor performance. Source

Highest Rated Modules According to Our Data

• Content and Course Management — 100
• Ecommerce — 100
• Reporting and Dashboards — 100
• User Management and Gamification — 100
• Assessments — 82

Top Benefits

• Efficient Operations: You can automate administrative tasks to save time spent on creating users, granting access, accepting enrollments and synchronizing data. The software also lets staff members sign in with a single sign-on functionality, so you don’t need to remember multiple passwords or log on to various systems separately.
• Scalable Learning: A scalable training platform allows you to add users and course content without storage or hosting limitations. You can create additional portals to roll out training for new users and integrate with third-party applications to conduct training across different time zones, shifts and locations.
• Better Security: LearnUpon provides industry-leading privacy and security standards to facilitate a safe training experience for customers and learners. The Amazon Web Services-powered platform complies with ISO 27001:2013 and SOC 2 guidelines and has a 99.99% uptime.
• Better Communication: Collaboration tools like discussion forums, group and private messaging, content co-authoring and real-time notifications help team members stay connected and updated at all times.
• Easy Access: The solution is quick to set up and use, and can be used from anywhere and at any time. It supports all major operating systems like Windows and Mac and comes with an iOS and Android-compatible mobile app.

Primary Features

• Course Creation: The platform supports multi-format learning programs with a range of content options, including webinars, SCORM and xAPI files, documents and videos. The solution validates content during upload to help you correct errors before publishing and lets you report on learner data like total interactions and time spent per course.
• Reporting and Dashboard: You can generate and view automated, real-time data reports on a central dashboard. You can filter reports based on date ranges, departments, user type and other micro parameters, and export and share them in Excel and PDF formats.
• Portals: You can create unique learning portals for different types of users with unique sets of features and content. The solution lets you edit and share courses between portals, centrally deploy content changes across portals, and define the number of enrollments and timeframes.
• Gamification: The solution offers game-based tools like “levels” to measure how far learners’ have progressed through a course and badges to reward high-performing learners. They can share their achievements with other team members through the leaderboard.
• Integrations: External integrations for various systems like CRM, eCommerce, communication and HRIS are available. You can connect the software with popular third-party apps like HubSpot, LinkedIn Learning, Degreed and Lattice.

Pricing

The solution offers three pricing plans:

• Essential: 50 to 150 users
• Premium: 150 to 300 users
• Enterprise: 300+ users

You can contact the vendor for pricing information about each plan.

Limitations

• Some users expressed that the features are limited.

Features Not Fully Supported According to Our Data

• Mobile Collaboration — Not supported
• Group Chat — Not supported
• Anonymous Grading — Not supported
• LTI Compliance — Not supported
• Breakout Rooms — Supported with partner integrations

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Docebo

Docebo is an AI-powered training platform that allows you to train employees, partners and customers, and is built for administrators and learners alike. It facilitates employee onboarding, talent development, compliance training, sales enablement and more. You can create engaging courses and tests, measure learner progress, host virtual classes, and deliver and sell courses on an eCommerce platform.

Create, manage and export tests. Source

Highest Rated Modules According to Our Data

• Ecommerce — 100
• Reporting and Dashboard — 100
• User Management and Gamification — 100
• Content and Course Management — 88
• Mobile Capabilities — 87

Top Benefits

• Easy Access: The solution supports all standard eLearning formats, like SCORM 1.2 and 2004 and Tin Can (xAPI), so you can deliver up-to-date content accessible to all learners.
• Global Learning: Your training program can be translated into over 40 out-of-the-box languages along with localized date formats. This cuts down on implementation time and allows employees, customers and partners from different regions to access the platform.
• Diverse Content: You can create content in a variety of eLearning formats, like SCORM 1.2 and 2004, AICC with PENS support and Tin Can (xAPI), and also add multimedia elements to courses.
• Flexible Learning: The platform supports many learning models, like instructor-led training, online training, blended learning and social learning. It allows you to adjust your training program to individual and collective needs without compromising effectiveness.
• Customized Interface: You can create a unique system interface that reflects your brand identity and offers a consistent experience to users using a range of white-labeling and branding elements such as templates, logos, colors and custom domains.

Primary Features

• Ecommerce: You can process orders and transactions, view purchase histories, manage course subscriptions and sell training materials on a branded eCommerce website.
• Reporting and Dashboard: You can create custom reports to view and analyze information about course progress, learner performance, training engagement and more on a centralized dashboard. You can apply filters to reports, change visibility permissions, and schedule and automate report delivery via email.
• Course Catalog: The platform helps you create private and public catalogs showcasing a range of multidisciplinary courses. You can configure visibility settings for certain catalogs, allowing specific users to interact with a selection of courses.
• Gamification: You can recognize learners for completing the highest number of courses or receiving the highest number of “helpful” votes in forums. You can also create leaderboards for different departments to showcase users with the highest number of points.
• Mobile App: Its mobile app, Go.Learn, allows learners to access the platform directly from their smartphones and tablets. They can self-enroll in courses, track progress, download and play offline content, and more, all on the go.

Pricing

The solution offers quote-based pricing.

Limitations

• Upgrade issues are common.

Features Not Fully Supported According to Our Data

• Mobile Collaboration — Not supported
• Drip Feeding — Not supported
• FERPA Compliance — Not supported
• On-Demand Recording — Supported with partner integrations
• Virtual Classroom — Supported with partner integrations

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Brainier

Brainier is an enterprise learning tool that provides training management, content curation and specialized speakers to deliver information. It’s cloud-based, mobile-compatible, and designed for collaboration and building a broader community around development efforts. It integrates with multiple partners in talent management, succession planning and other technology.

Rank learners on the company leaderboard. Source

Highest Rated Modules According to Our Data

• Content and Course Management — 100
• Ecommerce — 100
• Mobile Capabilities — 100
• Reporting and Dashboard — 100
• User Management and Gamification— 91

Top Benefits

• Better Engagement: You can improve employee engagement with personalized learning paths, collaboration tools such as discussion groups and video check-ins, gamification elements, and social and blended learning formats.
• Enhanced Security: The platform has passed multiple inspections and lives up to many industry standards. It complies with the GDPR standards and the EU-U.S. Privacy Shield Framework to work with EU and worldwide databases.
• Easy Integrations: Off-the-shelf software integrations use APIs to transfer data from existing systems like CRM, LCMS and eCommerce into the LMS. It streamlines data interoperability and allows you to evaluate all training activities in tandem on a single dashboard.
• Analytical Insights: Using built-in analytical reporting tools, you can easily monitor course and learner data, generate valuable insights and measure program effectiveness.
• Quality Content: The built-in content library provides access to a range of multidisciplinary courses, and off-the-shelf content curated by professional speakers and industry experts. This makes it easier for learners to access quality and updated training materials anytime and anywhere.

Primary Features

• Integrations: For companies looking for HR tools, talent management software, CRM systems or other workforce technology, it has many partners to expand overall capabilities. This includes Edcomm, ExponentHR, Salesforce, Skillsoft, TalentGuard, Vado and more
• Ecommerce: You can upload and sell existing content to learners inside and outside of your organization on an eCommerce platform. Allow users to browse the course catalog, apply coupon and promo codes on purchases and pay using various options like credit card, PO number and rewards points.
• Customization: The system allows you to brand or white-label platform elements using your company’s logo, colors, interactive templates and other attractive tools.
• Content Library: It offers multiple SCORM and AICC-compliant courses on topics such as business, compliance, computer training and safety. This includes course materials, video streaming, discussion prompts and testing questions.
• Mobile App: Learners can sign in to the mobile app on their smartphones to access training content, course libraries, progress reports and more.

Pricing

You can request a quote on the website.

Limitations

• It doesn’t support two-factor authentication.

Fully Supported According to Our Data

• Automated Grading — Not supported
• FERPA Compliance — Not supported
• Anonymous Grading — Not supported
• Skills Catalog — Not supported
• Interactive Whiteboards — Supported with partner integrations

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SkyPrep

SkyPrep allows administrators to create, administer, publish and sell eLearning content. It helps create learning materials, gamify learning elements, measure learner progress and generate analytical reports. The platform serves many industries including automotive, biotech, customer service, education, healthcare, finance, hospitality, manufacturing, product development and more.

Gamification features help drive employee engagement and innovation. Source

Highest Rated Modules According to Our Data

• Collaboration — 100
• Ecommerce — 100
• Reporting and Dashboard— 100
• User Management and Gamification — 100
• Content and Course Management — 93

Top Benefits

• Global Reach: The platform can be translated into 14 different languages, including Spanish, German, Russian, Chinese and Italian, making it easier for international users to access the system.
• Timely Compliance: It ensures compliance with industry-specific laws and regulations through insightful reports, workflow automation, audit logs, notifications for deadlines and more. It prepares your workforce for inspections and audits through comprehensive compliance training.
• Multi-Location Management: You can create sub-platforms for different segments of learners, and easily navigate and manage them from a central location.
• Customizations: Customization options allow you to add your company’s logo, color theme, layout and other visual elements to the platform to align it with your brand’s identity.
• Data Security: The platform ensures data security with SSL-certified infrastructure, HTTPS protocol, login verification, encrypting data at rest, IP and domain restriction, PCI-DSS compliance and more.

Primary Features

• Course Management: You can create online courses using authoring tools and populate them with multimedia elements like PDFs, PPTs and videos. Assign learners to courses, add descriptions and completion deadlines, and attach custom certificates to each course.
• Gamification: You can recognize learners with badges, points and rewards for completing courses within set timeframes, reaching new milestones, scoring the highest grades and other similar scenarios.
• Reporting and Analytics: A range of analytical reports that help track assessment results and learner progress, course completion rates, class participation trends and more. You can customize reports based on your preferences, add filters to sort data and view them on an interactive dashboard.
• Collaboration: An advanced suite of collaboration tools enables users to communicate and share knowledge about course content through discussion forums, send messages to instructors, administrators and peers, and connect virtually through video conferencing
• Personal Calendar: The company calendar allows you to plot meetings, test dates, quiz deadlines, group activities and more, and is accessible by all users on desktop and mobile devices.

Pricing

The solution offers three plans with different feature sets:

• Lite: Includes 100+ active users, custom branding, SCORM packages and email support.
• Professional: Includes advanced reporting, API and SSO, gamification and workflow automation.
• Enterprise: Includes multiple platforms, migration services, multi-year discounts and custom SMTP.

You can contact the vendor for pricing information about each plan.

Limitations

• The solution offers limited analytical capabilities.
• Some users reported that the API didn’t connect well with other programs.

Features Not Fully Supported According to Our Data

• Course Ratings — Not supported
• Anti-Plagiarism Software Integration — Not supported
• Video Assessment — Not supported
• FERPA Compliance — Not supported
• Breakout Rooms — Supported with partner integrations

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Absorb LMS

Absorb LMS is an enterprise-level learning and training solution that helps organizations streamline their eLearning processes using content creation, collaboration and progress reporting tools.

Its mobile app, Absorb Learning, delivers digital training content in multiple formats, including SCORM, xAPI, PDF, MP4 and Microsoft Office files. It also offers third-party integrations with apps like Salesforce, ADP and Zoom, and connects with any system via API.

Create separate collaborations for each activity. Source

Highest Rated Modules According to Our Data

• Content and Course Management — 100
• Ecommerce — 100
• Mobile Capabilities — 100
• Reporting and Dashboard — 97
• User Management and Gamification — 91

Top Benefits

• Continuous Training: Employees can download all training materials, like courses, documents, videos and presentations, for offline use to enjoy an uninterrupted learning experience.
• Streamlined Administration: Through integration with CRMs, HRISs and other legacy solutions, it centralizes and streamlines workflows for new hires, employee promotion, new customers and more.
• User-Friendly Interface: You can optimize all training content for various devices like iPads and smartphones to provide an easy-to-use interface to learners.
• Learner Engagement: It offers several tools and features to keep learners interested in the training process. For example, upon login, users can click on large static images and videos linked to external pages or the LMS. It also provides targeted social content, leaderboards, polls, news articles and other social learning functions to boost engagement.
• Centralized Access: The solution’s single sign-on capabilities allow users to access all training content and systems by simply logging into their universal user account.

Primary Features

• Machine Learning: The platform offers a machine learning-enhanced search option that provides learners with targeted content and gives better results through algorithms. Administrators also get insights into what their employees are searching for, the results they found and the results they used.
• Mobile App: The iOS and Android-compliant mobile app that enables learners to access training content anywhere and anytime. They can easily download eLearning materials like PDF documents and PPTs to their device for offline use, and sync their course progress to the LMS once they’re back online.
• Compliance: It complies with GDPR, SOC 2 Type 2, WCAG 2.0 AA and PCI, and provides third-party security audits, nightly scans and more. This ensures that data is secure and meets accessibility standards.
• Content Libraries: You can choose from several different libraries to download courses and content for learners. This includes classes on compliance, IT, sales, leadership and other subjects. It integrates with platforms like BizLibrary, LinkedIn Learning, Skill Pill, Skillsoft and Whil.
• Reporting and Dashboard: The reporting and analytics dashboard offers valuable insights into training KPIs like learner and course engagement rates, enrollments, subscription volumes and more. You can filter and refine reports, customize data columns, save report layouts and share them with learners.

Pricing

You can submit your training requirements on the website to get a quote.

Limitations

• Ecommerce capabilities aren’t flexible.
• Reporting tools aren’t advanced.

Features Not Fully Supported According to Our Data

• Skills Catalog — Not supported
• Audit Trail — Not supported
• Group Chat — Not supported
• LTI Compliance — Not supported
• Anti-Plagiarism Software Integration — Supported with partner integrations

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How We Choose Products

Our team of writers and analysts at SelectHub is committed to giving you the best recommendations based on our data. To make our list, products had to meet two criteria:

1. Closely match the topic
2. Earn a top-5 analyst score in our selection platform

Our analyst scores are based on an in-depth research process using primary and secondary sources. This includes SelectHub Analyst Briefings, direct communication with vendors, and reviewing materials such as user reviews, product brochures, specification sheets, case studies, user manuals, and technical documentation.

Our platform’s Scoring Engine processes the research and computes the analyst score. The score also factors in platform settings such as industry and company size.

Learn more about our research methodology and editorial standards

What Is an LMS?

An LMS (learning management system) is a type of software with a centralized framework that creates, deploys and manages learning content. In corporate settings, an LMS can help standardize, train employees, organize important assets and help workers create goals. Overall, it’s an update to how companies develop their employees.

For educational institutions and academic settings, it runs online courses for administrators, students, teachers, and districts. In any setting, it provides automation for assessing, tracking, reporting and testing learner competence in many subjects.

Types of Users

In today’s fast-paced digital world, the demand for online learning platforms has increased exponentially. As technology continues to reshape the eLearning landscape, it’s no surprise that LMS platforms have become a must-have tool for educational institutions, government agencies and corporations alike.

Let’s take a look at how LMSs cater to the diverse needs of different types of users and enhance their teaching and learning experiences.

Educators

Instructors use these solutions for teaching, managing classes and assigning projects. They look for tools that allow them to monitor student progress and have access to reusable templates for units and lessons for every semester.

Assessments and analytics identify at-risk students while in-depth grading and annotation capabilities help them reach their learners. Educational uses include individual schools, universities, school districts and online organizations from K-12 to higher education. Users could be students, teachers, administrators and even parents.

Enterprise/Corporate Customers

The corporate LMS market share is projected to grow from $18.26 billion in 2023 to $47.47 billion by 2030. A majority of L&D pros are turning to LMS platforms to train their workforce.

Businesses use tech for employee training and career development. It’s an easy way to standardize, develop and track learning while developing employee talents and helping them reach the next tier of their career.

Progress tracking and reporting tools enable you to measure individual performance and focus on skill acquisition to ensure the staff can do their jobs. An LMS also provides advanced compliance training and management features to help employees stay up to date on the latest industry standards and laws.

With an eye for the future, administrators can use more advanced systems to see how, when, and where workers access information. After combining an LMS with an HRIS or other software, it becomes a powerful tool for actionable insights.

Independent Users

Individuals may engage with an LMS without being affiliated with a specific educational institution or organization. The software provides flexible and self-paced learning opportunities for these users and helps structure their learning journey based on personal needs and preferences.

Independent users of LMSs include:

• Independent learners who seek to acquire new knowledge or skills to pursue personal interests, hobbies or professional development outside of a formal setting.
• Freelancers and entrepreneurs looking to enhance existing skill sets or learn new topics such as marketing, coding and graphic design.
• Individuals switching jobs and looking to gain basic knowledge or develop new skills can access courses relevant to their desired field to bridge existing knowledge gaps.
• People with a particular hobby or interest may use an LMS to deepen their understanding and expertise in specific fields. For example, someone interested in photography, pottery or creative writing can access relevant courses to improve their skill set in these areas.
• Professionals such as lawyers, engineers and healthcare professionals seeking continuing education to fulfill licensing or certification requirements, or stay up-to-date with industry trends and best practices.
• Lifelong learners with a desire for continuous learning and personal growth or a general interest in various domains, such as history, science and literature.

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Benefits of a Cloud-Based LMS

Why should you use a cloud-based LMS? Let’s go over some of the ways it can benefit your organization.

Accessibility

In a Buffer survey, 71% of companies said they permanently allow some amount of remote work, and almost half of remote workers reported feeling very energized as a result. This makes it important for your employees, managers and administrators to be able to train without being physically present in the office. A cloud-based LMS helps facilitate continuous learning by providing on-the-go access to all training materials.

On-premise software is only available on the device it is installed. Since cloud LMSs are hosted on remote servers, all users can access the software from anywhere through their desktops, tablets, laptops or mobile phones, as long as they have an internet connection. Some solutions also allow users to download files, view course progress, write assignments and perform similar tasks on the mobile app, even if they’re offline.

Cost-Effectiveness

Most cloud-based LMSs don’t require you to pay any upfront costs apart from ongoing subscription fees, which vary depending on the vendor’s pricing model.

You gain access to the software as soon as you download it from the vendor, a huge relief from the heavy installation costs that come with hosted systems. A cloud-based LMS is also updated and maintained solely by the vendor, which helps cut down on expenses like employing in-house IT staff.

Scalability

A cloud-based LMS can adjust to suit changing business needs. For example, if your employee strength shoots up or you need to introduce new modules to your course directory, you can easily upgrade your system space and capabilities to accommodate these and similar requirements.

Make sure you talk to the vendor about potential scalability needs in advance, since some solutions might have hidden fees for expanded options or limitations on how much growth they can accommodate.

Security

In the internet age, cybersecurity has become a serious privacy concern for organizations. Be it a small data leak or a bigger virus threat, you don’t want to dissatisfy your customers by risking their personal information.

Cloud solutions provide a solid security infrastructure through features like Single Sign-On (SSO), end-to-end encryption, multi-factor authentication, user roles and locked content. These measures protect your company and user data from unauthorized access, malware and other privacy threats.

Productivity and Engagement

With instant access to key components of the training program on their smartphones, learners can easily interact with eLearning content without time or location restrictions. They can start courses, view test scores, send messages, manage subscriptions and more on a user-friendly mobile interface.

This helps all users engage with the training material more frequently and collaborate in real time, making for a more productive learning experience.

Smooth Implementation and Configuration

LMS software is straightforward to implement and configure, saving you time and reducing costs associated with setup and deployment. It minimizes the need for extensive technical expertise or dedicated IT resources, allowing you to streamline the implementation process and focus on other critical aspects of their training programs.

A user-friendly implementation process offers a positive experience for both administrators and learners. You can configure the system to align with specific training requirements and use branding elements like company logos, colors and fonts to personalize the user experience.

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Types of LMS

There are over 800 LMS platforms in the market, each with its own set of features and benefits. But before you select a solution, it’s important to understand which type of LMS is best suited to your business requirements.

Let’s discuss some common types of LMS and how each model can work for your training program:

Open-Source

An open-source LMS comes with a publicly available code that can be accessed, modified and developed by a vast network of users. It provides active user community forums to share support and exchange resources and can be customized to reflect your company’s unique brand identity.

Examples: Moodle, Canvas LMS, Chamilo, Edmodo, Blackboard Learn

Installed

An installed LMS, also known as a self-hosted or on-premise LMS, is hosted on local servers or infrastructure within an organization’s network. In this setup, the user must manage the software and hardware installation, configuration and maintenance.

Examples: iSpring Learn, Skyprep, Open edX, Sakai, Google Classroom

Web-Based

A web-based LMS allows organizations, educational institutions and individuals to create and manage learning content on a cloud server. It enables learners to access course materials, submit tests, view progress reports and participate in other learning activities using multiple devices like computers, tablets and smartphones.

Examples: LearnUpon, 360Learning, Instructure, Cornerstone OnDemand, eFront

Custom-Built

A custom-built LMS is developed and tailored to meet the unique needs and requirements of an organization. Instead of using an off-the-shelf or commercial LMS, you can build it from scratch or by leveraging existing technological frameworks.

It provides complete control over software design, features and functionalities, and can be customized to match your branding, user interface preferences and specific workflows.

Examples: Schoology, Canvas, D2L Brightspace

Use Cases

According to Manpower Group, the global talent shortages reached a 17-year-high in 2023. Perhaps that’s why upskilling continued to rank high among the top focus areas for L&D in 2023.

But simply buying an LMS isn’t enough — it should cater to your specific employee, partner and customer training needs. Here are some of the ways you can use an LMS to meet your business and career development goals:

Onboarding

An LMS helps new hires with more consistent instruction, well-organized paperwork, centralized forms and a reliable place to get answers. New people acclimate to company culture and acquire essential job skills more quickly.

Employee Training and Development

Upskilling workers, reinforcing competencies, teaching new skills and staying up to date on industry information are other ways online training software helps. Learning and development help with employee retention. Employees are more likely to stay where they feel valued.

In a 2023 Jobvite report, 52% of job seekers list career advancement as their top reason for seeking a new role. Companies looking for more advanced development options for workers may want to consider a talent management system.

Compliance

Going online cuts down on paper and keeps businesses in better compliance. They can provide lessons about standards to follow for full-time, part-time and contract workers alike saving millions in potential fines and downtime. LMS features that address compliance include resource management, detailed reporting, audit trails, online signatures and more.

Learning solutions can also save a company lots of money. In the IT Compliance Benchmark Report, companies reported an increase in the number of applicable and required regulations (45%), greater scrutiny and enforcement (45%), and frequent regulatory changes (38%) as the top reasons for higher spending on compliance and risk management.

An LMS makes sure you adhere to a range of industry standards and government regulations, including GDPR, PCI DSS and HIPAA, to avoid non-compliance fines, revenue loss and legal issues.

Sales and Marketing Tools

Some systems can integrate with other sales or marketing software. In conjunction, these two types of systems can be used to inform salespeople of new product information or new value-adds to better appeal to customers. It provides valuable research about their demographics.

Customer Training

For organizations that need to teach members or clients how to use the platform, a customer-facing LMS works well. It distributes materials and keeps everyone communicating through messaging apps, white papers and webinars.

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Pricing Structures

Is your budget enough to get your own LMS? Here are the different pricing models and what to consider when looking for different options:

• Open-Source: These systems are generally much more affordable and sometimes free. They’re usually highly customizable, but make sure your software has the capabilities you need. Also, keep an eye out for scalability options.
• Free Trial: This is a good way to test and implement an LMS on a small scale before committing.
• Monthly Subscriptions: Common for the industry, this cost is usually a fixed rate per month. Sometimes, it’s fixed per month and user.
• Annual Subscription: Sometimes accompanied by a deal when it comes to price, this is a rate paid per year. It may be based on the number of users or other factors.
• One-Time License: This is common for on-premise solutions and is a one-time fee.
• Payment Per User: Many platforms charge by the number of users.
• Tiered Pricing Plans: Most LMSs offer more diverse features with increasing prices. It’s important to watch out for plans that manipulate you into bumping up to a price point you’re not comfortable with. Read the fine print carefully.
• Add-Ons: It’s sometimes difficult to tell what’s truly included in a plan and what’s an add-on, so make sure you have a comprehensive list of must-haves.

Many plans fall into the monthly subscription model with tiered pricing. They often have extra costs for add-ons. Be sure to question your salesperson extensively before committing. Demo as much as possible and understand the pricing structure inside and out before you buy it.

You can also check out our LMS price guide to learn about the payment structures of the leading market products and how they compare in terms of cost-effectiveness.

Cloud-Based vs. Hosted Solutions

Cloud and hosted LMS refer to the different deployment models for implementing learning management systems.

With the rise in remote and hybrid working models, the cloud LMS market has surged. A cloud LMS provides a cost-effective, easy-to-use and scalable platform to manage training activities, especially as compared to an on-premise or hosted LMS. On the other hand, hosted LMSs offer a robust security infrastructure and are an excellent fit for organizations with extensive customization needs.

Let’s look at how the two models compare:

• Infrastructure: A cloud-based LMS is hosted on remote servers and accessed through the internet, while hosted or on-premise software is deployed on servers owned and maintained by the organization or a third-party provider.
• Accessibility: Users can access a cloud-based LMS from anywhere with an internet connection and device, whereas a hosted LMS only works on the organization’s private servers or through a VPN (Virtual Private Network).
• Maintenance: The vendor takes care of software updates and maintenance, security and data backups for a cloud-based LMS. For a hosted LMS, the organization is responsible for these tasks.
• Cost: Cloud-based LMSs offer flexible pricing options enabling organizations to pay recurring fees based on the number of users or features they require. Hosted LMSs require upfront payment for installing the software infrastructure, licensing and ongoing maintenance.
• Scalability: A cloud-based LMS is scalable, allowing organizations to accommodate growth in the number of users or an increase in content usage on the same platform. Hosted LMSs need hardware upgrades or server capacity expansion to handle increased usage.

Cloud-Based vs. Open-Source Solutions

If you find the price point just isn’t lining up with your selection of cloud-based LMS, it could be time to consider an open-source option. Sometimes free, usually competitively priced and always highly customizable, these options have benefits and drawbacks.

These are the most common pros and cons:

Pros

• Low-cost, more affordable or free
• No set pricing model
• Good for small businesses
• Additional functionalities available a la cart
• Support in communities from other learners
• Can be modified or customized
• Work well as a basic stand-alone option

Cons

• It requires installation and is often more work upfront
• It’s hosted on another server meaning you have little control when issues arise
• It sometimes has fewer options for features, customization and reporting
• Can’t add as many people

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Best Open-Source LMS Solutions

If you’re looking for a non-proprietary solution, here’s our list of the best open-source LMSs to guide your search:

Moodle

Moodle is an open-source training solution used by companies, K-12 schools and higher education institutions. It offers features like course creation, calendars, dashboards, text editing, SCORM compatibility, reporting, learning paths and group management. You can download the solution’s mobile app to download course content, track progress, send messages and even work on the go.

Open edX

Open edX provides an all-in-one platform to facilitate online campuses, instructor-led courses, degree programs and self-paced courses. You can easily create eLearning modules using authoring tools, conduct assessments, track learner activity, manage certifications and more on a cloud-based system.

Chamilo

Chamilo is a cloud-based learning solution that helps businesses develop virtual campuses to facilitate online or semi-online training. It comes with features like course catalogs, certifications, skill management, configuration and SCORM support. It also allows you to sell eLearning courses online to employees and external customers, and access the mobile app via Android devices.

Blackboard Learn

Blackboard provides corporate training solutions to businesses in various industries like healthcare, banking and science. Its capabilities include learner progress management, personalized learning experiences, feedback exchange, data reporting and more. You can also integrate the software with third-party applications to enhance overall system capabilities.

Forma LMS

Forma LMS is an open-source LMS that provides corporate training solutions to businesses of all sizes. It provides internal training features like course catalogs, learning pathways, data reporting, user management and third-party integrations. You can create custom reports and schedule submissions to administrators, send automatic notifications, and allow users to communicate through forums and private messages.

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Next Steps

An LMS is an essential tool to keep up with the constantly changing skills of the modern marketplace. Whether it’s cloud-based or locally hosted, open-source or closed-source, high-end or inexpensive, the right platform makes it easy to upskill workers, get your staff engaged, and transform your company into a more streamlined and capable business.

Ready to find the LMS of your dreams? Check out our free software comparison report for valuable insights into the capabilities of leading market solutions and how they stack up.

Did we cover your favorite cloud LMS in our article? What experience have you had with these solutions? Are there other considerations we missed? Leave a comment below!