Why Hosted Learning Management System Can Hugely Benefit Your Company

Category: Learning Management Software

qnaKevin, a financial advisor based in Chicago, is planning to set up an online classroom where he can provide his clients with e-books and courses on financial planning and investments. Kevin already has a website set up and plans to use a learning management system for his small business. However, he is torn between getting a licensed LMS software or paying for a hosted learning management system.

“Hey there! I believe that learning management systems will really boost my enterprise. I plan to provide paid online courses and lessons on financial planning and I believe I got a potentially large market. I did my reading and delved on the benefits of LMS platforms and even checked out some top and popular learning management systems just to get a feel of what they can bring to the table. Now, I am figuratively on a crossroads here and I don’t know whether to pick a licensed LMS platform or go for a hosted learning management system. I would like to know how would you decide on this dilemma. Thanks!”

Hi Kevin! I pretty much understand your position. Both licensed LMS and hosted LMS present a throng of advantages as well as some disadvantages, depending on several factors. There are several things that comes into play when you choose between licensed and hosted LMS solutions. So what makes one option better than the other and vice versa? Read on and find out.

#1 Lower start up expenses

Licensed LMS software solutions are expensive. But given that you can install and deploy the system in your servers and have full control over the platform’s installation and system configuration, it is a good thing. But if you are financially limited, a hosted learning management system is an excellent alternative. SInce you are not buying a software and you are basically signing up for SaaS (software as a service) solution, you need not shell out money from the bank. That also means you are spared from delegating and paying IT professionals for the installation and maintenance of the system once it is in place.

Cloud based LMS  may not provide you with a wide range over the system’s internal setup, but there are several platforms out there that are not only cheap, but are customizable on so many levels. allowing users to still enjoy that element of “personal touch” even if they are just paying for a hosted service. But bear in mind that hosted LMS platforms can be expensive in the long run, especially when charges for special add-ons and optional services compound through the years.

Read more:  Good Cloud Based Collaboration Software

#2 Better and easy accessibility

Most licensed LMS softwares are installed in a company’s internal network and can only be accessed via specially designated computers and devices and only during specified hours. While this setup contributes to a tighter data security, it is not as accessible compared to cloud based learning management setup. In contrast, having a cloud LMS platform in place makes it easy for administrators and learners to access the system just by logging on to their account anytime and from anywhere at their convenience. Users can use any compatible mobile device to log on and do their thing without limitations and at their own pace.

For educators and administrators, they can easily build courses and edit materials just whenever.They can use their tablets and other mobile devices to upload content as well as get in touch with their fellow collaborators and learners via real time communication applications and tools.

#3 Bigger space for storage

While most licensed LMS solutions come with a fixed storage space, the same can’t be said with hosted learning management systems. All the data and content you upload will be stored in the hosted LMS’ servers, thus freeing up space on your devices and drivers. Some hosted LMS solutions have plans that include specified amount of storage space. As a remedy, these hosting solutions offer space upgrades to cater to your storage needs just in case you require more.

Also, with hosted learning management platforms, you need not worry about losing information and other content that usually occurs when your hard drives get corrupted and files get deleted permanently.


These three reasons are just some of the things why you should pick hosted learning management softwares. Cloud based LMS offers flexibility, reliability, and accessibility that you could not easily get from licensed LMS platforms. Further reading on hosted LMS solutions and reviews on popular cloud based LMS will give you more information on the subject and hopefully aid you in your future decisions.

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. No stranger to small business hiccups and drama, having been involved in a few internet startups. Prior to his for-profit ventures, he has had managed corporate communications for a Kansas City-based Children International unit.

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