What is an LMS?
A learning management system or LMS is a software-based or SaaS platform that lets you create, organise, deliver, and report on training courses and programs. It is a hub for storing and accessing information that can help users learn efficiently and conveniently.
Training assets are uploaded and organised in the server component of an LMS and user profiles are authenticated and managed.
End-users such as administrators, instructors, and students access the LMS through a user interface, typically on a web browser.
What are the Advantages of Using an LMS?
There are several key advantages to using a learning management system to deliver your training, most of which sit with the flexibility and reach an LMS offers.
As a user or learner, some of the top benefits that will be experienced are:
- Deliver training flexibly and on-demand
- Reduce costs compared to classroom-based training
- Increase reach
- Manage and curate training content
- Monitor and track learner performance
- Improve retention rates
- Update learning content easily
- Deliver targeted training depending on the audience
- Reduce onboarding time
LMS Licencing Types
There are several types of learning management systems that you can choose from, with each one having its own set of advantages and disadvantages:
Proprietary
Proprietary LMSs are owned by your organisation and are restricted from any modifications, reverse engineering and other uses. They are closed-source and come with licence costs per user.
Open-source
On the other hand, open-source learning management systems are designed to offer complete freedom to share, change and update the platform depending on requirements.
Setting up an open-source LMS can be resource-intensive and requires programming know-how. Continued contributions to its development are from a broad developer base, which can lead to extensive functionality, sometimes excluded from the ‘off-the-shelf’ solutions.
Managed LMS
With this model, LMS management is outsourced, including setup configuration, user base, course creation, certification, feature updates, and more. This service is gaining traction among organisations as it takes the burden off in-house teams by letting a reliable management company take over costly and time-consuming tasks.
LMS Pricing Models
Pricing models vary greatly from vendor to vendor. However, there are four common ways that learning management systems are priced:
Subscription
This model is based on a monthly fee for each active user. Usually, the vendor will offer pricing brackets. This is the most sensible option if you are a smaller organisation that wants to minimise monthly outgoings but retain growth potential.
Licencing
Typically this model involves an annual fee that is reviewed and renewed annually, or there is an upfront fee. With this option, you have to upgrade software as and when there are technological advances.
Freemium
This option offers free basic features, but costs will increase as more advanced features are used. Although ‘freemium’ is an option, it does make it hard to budget for overall costs.
Perpetual licence
Like the licensing model, this is based on a fee paid when you buy the software. There are no fees or subscriptions to think about, however, it does not account for software upgrades in line with technological advances.