What is a Hosted LMS and How To Choose One?

Last updated on August 23, 20248 min
Samantha Khoptii
Technical Writer
Mary Novak
EdTech Digitalisation Expert

Learning management systems (LMS) have evolved significantly since their advent. For starters, gone are the days of clunky on-premise software that required an IT degree to maintain. We live in the era of the hosted LMS – a game-changer for companies of all shapes and sizes. But what exactly is a hosted learning management system, and how do you choose the right one? Let's look at all the LMS hosting options and find the best way to store your data, allowing for more flexible management and easier eLearning content delivery.

Understanding Hosted LMS

With a hosted Learning Management System (LMS), organizations can completely reshape their approach to employee training and online education. The term "hosted" pertains to the location and method of storing and managing the LMS software and its associated data.

LMS hosting comes in various forms. Organizations can choose to have their LMS hosted externally by a service provider or opt for self-hosting on their own servers. Organizations should thoughtfully consider the specific pros and cons of each of these approaches.

Where and how to host an LMS can actually have a major impact on the entire operation of your organization. Is your data secure, can it be easily scaled, and will you have easy access to it? And what level of control do you want to have over each part of the system's implementation? While some companies value the convenience and reduced IT responsibilities that come with externally hosted solutions, others prefer the complete control over data and infrastructure that self-hosting provides.

Regardless of the hosting method, an LMS offers powerful tools for managing training content, tracking learner progress, and adapting programs to meet changing business needs. Modern LMSs are flexible enough to help organizations develop, roll out, and manage their training programs quickly. This flexibility allows them to meet a wide range of training requirements from new employee onboarding to compliance training and professional development.

Types of Hosted Learning Management Systems

When diving into the world of hosted Learning Management Systems (LMS), you'll encounter two main categories: on-premise and cloud-based solutions. The two types each have their standout traits and are designed with specific company requirements in mind.

Let's start with on-premise LMS, sometimes called self-hosted or locally hosted platforms. Picture this as having your own personal library right in your office building. With an on-premise LMS, you install and run the software on your company's servers. Choosing this path means you're the boss of both your data's home and how the whole system ticks. It's like being the librarian of your collection – you decide how to organize, secure, and update your resources. This setup is often favored by organizations with strict data privacy needs or those looking for extensive customization options.

Now, let's shift gears to cloud-hosted LMS, also known as Software-as-a-Service (SaaS) solutions. Imagine this as a vast digital library you can access from anywhere with an internet connection. In this scenario, external providers manage the LMS and host it in the cloud. They take care of all the behind-the-scenes work – maintenance, updates, and security. Think of it as an elite squad of librarians running a huge library for you. SaaS LMS platforms are renowned for their scalability, accessibility, and reduced IT burden for the organizations using them.

Both types of hosted solutions share common ground in their core functionalities. They're equipped with all the bells and whistles for whipping up digital courses, peeking into learner progress, and juggling your training resources. It's like having a well-equipped classroom at your fingertips, regardless of the hosting method you choose.

Deciding between a self-hosted and a cloud-based learning management system depends on several factors. And if you read this guide to the end, you'll likely find it easier to lean toward a particular option.

Advantages and Disadvantages of Hosted System

Contemplating whether to opt for a self-hosted learning management system? It's a bit like deciding to cook a gourmet meal instead of ordering takeout – potentially more rewarding, but definitely more work. Let's slice and dice the pros and cons of self-hosted LMS solutions to see if they're worth the extra effort.

Upsides to Consider:

  • Your LMS, your rules: You are the king of your learning management system. Want it to look or work differently? Go for it. With this level of LMS customization, you can make the system fit your organization like a glove, not the other way around.
  • Data stays at home: If you're handling sensitive training material or user data, keeping it on your servers can be a big plus. Think of it as a home safe for storing your digital wealth - you decide who gets the key.
  • RED-level security (if you feel like it): When you're in charge of the whole setup, you define how to protect information classified at each level. If you believe that your learning materials deserve the RED category, meaning Top Secret, that is your right and you establish appropriate security measures for such data. This is particularly useful in industries that have stringent security standards.
  • Potentially cheaper in the long run: Deploying a self-hosted LMS may be expensive up front, but it can save you money over time — especially for larger organizations with particular needs.

Downsides to Consider:

  • You'll need tech wizards: LMS implementation requires a team of IT pros to deploy, maintain, and support the system. And it's not a one-and-done procedure but an ongoing commitment.
  • Rome wasn't built in a day: Launching a self-hosted solution can take a lot of time. It is not only about installing the software; you’ll have to create the whole ecosystem.
  • Hardware headaches: Since your LMS is self-hosted, you will have to put the hardware in place to support it. You might have to create a server infrastructure along with data storage solutions, which would also entail a large investment.
  • Limited accessibility: Depending on how you set things up, your self-hosted LMS might not play well with the outside world.  Sadly, you may not have the best remote learning opportunities.
  • Scaling pains: As your organization expands, scaling up your self-hosted learning tool can be trickier than with cloud-based alternatives. It's like trying to expand a house - sometimes it's easier to move than to renovate.

Advantages-and-disadvantages-of-hosted-lms

Who should consider self-hosted LMS?

A self-hosted solution may be perfect for some companies, especially:

1. Specialized Educational Institutes;
2. Companies that focus on data security and control;
3. Entities with established IT infrastructure and support;
4. Enterprises having or planning to have the LMS for large-scale and long-term usage;
5. Institutions operating in low-internet areas.

Self-hosted system is better if you want more control and power. However, it demands some technical expertise and conditions. Therefore, it's suitable for a company that has:

- Qualified and full-time IT specialist or team;
- Powerful hardware and sufficient storage capacity;
- Other IT solutions that need to be integrated with LMS;
- Strict data privacy regulations.

Consider your organization's resources, technical capabilities, and long-term learning goals when deciding if a self-hosted system is right for you.

Advantages and Disadvantages of Cloud-based LMS

Cloud-based learning management systems have streamlined the way we approach online education. But as with any technological leap, the fact that the LMS is hosted off-site brings both opportunities and potential pitfalls. 

Upsides to Consider:

  • Up and Running in No Time: Picture just having bought a new device and being able to use it straight out of the package. That's pretty much how cloud-based LMS works. Since the system is hosted online, you don't need to be a tech wizard to get things going.
  • Easier on the Wallet: With cloud hosting, you don't have to spend money on expensive servers and IT resources. You simply pay for what you use, which can be a real money-saver, especially for startup e-learning projects or small businesses.
  • Grows With You: A cloud-based LMS can effortlessly expand as your training needs grow. Adding users or a massive amount of content will not require you to change over your setup at all — the system is versatile enough for any situation.
  • Learn Anywhere, Anytime: With the cloud-based e-learning solution, your team can access training materials from the office, at home, or even while sipping a latte at their favorite café. Which is ideal for the rapidly mobile world we live in.
  • Never Out-of-date: Remember the days when you had to update software manually? With cloud hosting services, those are long gone. This means that the provider keeps all of the behind-the-scenes tech stuff up to date so that you always end up with a brilliant version without lifting a finger.
  • Content is king: Save time from all the technical hassle and channel that mental energy into developing top-notch teaching materials. It's as if you have your own in-house technical team that takes care of everything, leaving you to focus on the learning experience.

Downsides to Consider:

  • Internet Dependence: The elephant in the room for any cloud-based system is its dependence on internet connectivity. If your connection goes down or slows to a crawl, it can throw a wrench in your training plans.
  • One Size Doesn't Always Fit All: Although cloud-based platforms offer some level of customization, they are not as flexible as self-hosted solutions. So if you're looking to create a truly unique learning experience, you might feel a bit constrained.
  • Data Security Jitters: Storing sensitive information on someone else's servers can make some folks nervous. While most providers take security seriously, it's a concern that never completely goes away for some organizations.
  • The Expense Perspective: Cloud-based systems can help to lessen costs upfront, but monthly or yearly rates may add up over the long run.
  • Performance Issues: Your LMS can be sluggish and unresponsive, but there's not much you can do about it since it's all on the provider's side. It can be a bit like being stuck in traffic – frustrating, but out of your control.

Advantages-and-disadvantages-of-cloud-based-LMS

Who should consider cloud-based LMS?

Cloud-based LMS solutions are ideal for:

1. Businesses with a lack of own IT staff;
2. Companies seeking rapid deployment of online courses;
3. Organizations with international personnel;
4. Institutions requiring scalability and flexibility
5. Businesses that do not want to allocate funds for their own IT infrastructure.

Cloud-based LMSs are perfect if you want to forget about the technical side of the system and focus on content creation and interaction with learners.  Anyway, consider your organization's needs, budget, and technical capabilities when choosing.

Choosing the Right Hosted LMS Type for Your Needs

When selecting the best learning management system for your organization, consider these key factors:

  • Budget: Check the prices and evaluate costs vs. potential ROI.
  • Features: List the features you cannot live without and those you would like to have.
  • Scalability: Consider the future growth of your needs and the possibilities provided by the chosen system.
  • Use case: Make sure that the system fits your industry and your training objectives.
  • User-friendliness: Choose systems that are easy-to-use for each type of user.
  • Support: Read reviews to consider the quality of customer service.

Since LMS vendors provide different options, you should carefully compare them with your needs. However, if you become frustrated with all these choices, you should seek out LMS consulting services to guide you through options. You can try as many demos and free trials as you need. Still, remember that the best LMS is the one that boosts learner engagement and aligns with your company's goals.

choosing-the-right-hosted-lms-for-your-needs

Conclusion

Choosing the right LMS is like finding the perfect pair of shoes for your online learning program. Cloud or self-hosted, each has its fit. Don't rush – take time to try on different options, considering your needs, budget, and tech-savvy. Remember, LMS developers are always cooking up new features, so stay curious. By investing time in finding the right LMS system, you'll create a robust foundation for online learning and organizational growth. Now, go find that perfect LMS match!
 

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