SaaS LMS vs Hosted LMS

• 4 min read

SaaS vs hosted LMSLearning never stops” : Corporate culture seems to have adopted this mantra in a big way, and we see that Learning Management Systems have now become an imperative part of L&D – and that having no LMS means your workforce is way behind in terms of being competitive.

Though an LMS is now considered “mission critical”, it still presents  some challenges during the decision making process and in getting a quick buy-in from top management. The main challenges considered are: cost of implementation, time to market, scalability, TCO (Total Cost of Ownership), ROI, and security . However,  based on recent reports published by the ‘Information Week Analysis SaaS survey’ the SaaS LMS – or Cloud LMS – seems to be addressing all of these challenges very effectively, and SaaS Cloud  is now considered the future of Learning Management Systems (and, well, corporate learning). Most corporations also seem to be more than satisfied with the SaaS LMS Model as it is budget friendly and easy to manage. The SaaS model means a drastically reduced TCO of the LMS due to there being no “hidden costs” for maintenance and infrastructure setup. There is no doubt that SaaS LMSs are, increasingly, going to be the choice of corporations in the future to achieve their organisational training goals.

The advantages of a SaaS LMS

Based on my experience so far with SaaS LMSs, below are some of the advantages of a SaaS LMS which I am sure will be helpful for you whilst making a decision on whether to use a SaaS or Hosted solution:

  • Speed of Implementation
    Gone those days when a LMS used to take months to get implemented – leading to a delay in time to market. With a SaaS LMS one can quick-start learning and bring it down to just one day to get started! When dealing with a SaaS LMS there is no concept of implementation as the entire infrastructure is ready and one just needs to create an instance and start using it. Leading LMSs like Docebo allow you to set up your LMS instance in as little as five minutes and you can start training your workforce without any delay. This way you can be up and running in no time and because of this, corporations are saving on time and therefore cost.
  • Lower TCO and Better ROI
    With a SaaS LMS you can achieve better ROI with a lower TCO. As organisations do not need to invest in infrastructure cost, maintenance cost, upgrading costs, or branding costs, this means a lower Total Cost of Ownership ( TCO). In the SaaS model all these costs are taken care by the LMS vendor and apportioned across its multiple customers. The SaaS model allows the conversion of OPEX into CAPEX and hence it is a win-win situation for both the customer and the vendor.
  • High Scalability
    A SaaS LMS offers high scalability as the infrastructure required is already established, and irrespective of the organisation’s growth plans, scalability is not negatively impacted. A reputed SaaS LMS vendor like Docebo ensures that the platform and the infrastructure are kept up to date to match the demands of the market. Also, from a technical standpoint, the architecture of the LMS is built in such a way that it can take any user load if there is a sudden increase in the number of users. Also new technologies have ensured that there is no break-down during peak time.
  • Hassel Free Upgrades and Wide reach
    In a SaaS LMS any new upgrade is implemented across all instances. So one need not worry about the latest features being activated in the LMS since – in the case of a SaaS LMS – the upgrade process is automatic. This saves the hassle of upgrading with new modules when compared with hosted solutions.Also, in today’s competitive world every organisation needs their employees to be kept updated with the latest information and knowledge and a Cloud LMS handles this job perfectly as most Cloud LMSs can be accessed via PC, Tablet, Smartphones etc so long as there is an internet connection. This allows a better reach to impart the required training, especially for the target audience that is always on move.
  • Seamless Integration with third-party software
    The SaaS model has done a good thing in that it has helped open the market of readily available APIs for any type of integration. Most of the time organisations require their HRMS data or PMS data to be integrated with the LMS from a reporting perspective and with readily available APIs – this is possible without any additional cost for any integration efforts / customisations. Unfortunately few LMSs offer a readily available API for SSO with Facebook, Gmail, LinkedIn, Twitter and for the Virtual classroom with WebEx, Go to Meeting, Vivocha, Onsync, Teleskill, Big Blue Button, etc. A SSO helps organisations that wish to opt for a seamless user integration through any of the third-party software in LMS.

Of course Docebo does offer seamless integration with third party software, SSO, and more, so if you want to check that out do sign up for a 14-day free trial!

I hope the above list helps you to understand why a SaaS LMS is considered the future of learning. If you are stuck with your old legacy LMS and you wish to migrate to a SaaS LMS or you wish to subscribe for a SaaS LMS, do not hesitate to contact your Docebo regional sales representative.

We believe in helping organisations to shift to the future of learning – and the future of Learning Management Systems – which needless to say is on the Cloud.

Amol Shinde

Amol is a highly respected elearning professional and an acclaimed E-learning Solution Sales Consultant. He is passionate about latest technologies in E-learning, with an in-depth, and hands-on understanding of various Learning Management Systems. He brings rich cross-functional experience, passion for innovation and expertise in transforming learning strategy into high quality E-learning Solutions.