Ed is a technical content writer with more than seven years of experience. He loves crafting compelling content that explains complex technology in ways that make it easy to understand.
As of today, there are approximately 73.8 million LMS users and this number is only increasing. It clearly indicates the dynamic growth of the LMS industry and the demand for education-streamlining solutions. More and more organizations are investing in learning management software, and the first challenge they face is the choice between SaaS LMS and self-hosted platforms.
What is the difference between the two and which is better for your business?
This article aims to answer these questions.
As LMS developers with over 12 years of experience, we would like to discuss SaaS LMS solutions, describe their benefits, and compare them to self-hosted software. Hopefully, this article will help you choose the right learning management system to deliver the best learning experience to your employees.
Without further ado, let’s get started!
What is a SaaS LMS?
SaaS stands for software as a service. This is a cloud-based software licensing and delivery model where a cloud provider hosts applications and makes them available to the end user via the internet. In this model, the cloud provider is responsible for managing servers, databases, and other hardware required to deliver software to users. You, for your part, have to make timely payments for the service.
In other words, a SaaS LMS is a cloud-based LMS. Unlike a hosted LMS, a SaaS solution is not installed on a company’s servers. Instead, it is hosted online, allowing easy access to the system and the ability to scale up or down based on business needs.
SaaS LMS platforms are typically provided on a subscription basis or through the pay-as-you-go model:
The subscription model implies making monthly/yearly payments for the service, regardless of usage.
With the pay-as-you-go model, you pay only for the resources you use (for example, for a specific number of training courses created) and as you use them.
What is a Self-Hosted LMS?
A self-hosted LMS (also called on-premises LMS) is a learning management system that requires installation on your company’s local servers. This gives you more control over data security, customization, and integration with other systems. On the other hand, you’re responsible for updates, upgrades, and maintenance. Thus, you will need an experienced IT team that will handle these processes, whereas with cloud learning management systems, you can rely on SaaS LMS vendors to do the job.
Self-hosted learning management systems require significant upfront investments: you will have to purchase the license for the software and regularly invest in its maintenance. However, it is considered more cost-effective in the long run.
As for scalability, self-hosted platforms may be limited by your organization’s infrastructure: whenever you need to scale up, you have to invest in hardware and additional resources. With SaaS LMS solutions, the case is easier, as you can scale up and down on demand, without having to purchase additional hardware (all you have to do is subscribe to a more expensive plan).
