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How much does LMS Implementation cost?


With the speed of technological innovation at an all-time high, it’s easy to feel like technology in modern times is too fast to keep up with. Learning Management Systems (LMS) is equipped with tools and resources that automates the tedious work like reporting, grading, and other administrative tasks. So, what is the factor that acts as a catalyst for businesses while selecting an LMS? LMS implementation cost can be considered as one of the top priorities for schools and businesses while choosing the correct learning management system (LMS).

Learning management system is widely used in organizations for administering and managing the training of employees. One of the most popular form of the Learning Management System on tap is Open Source or Free LMS in which the source code of the software is free to use and available openly for download. The idea of implementing an open-source Learning Management System for free or very low LMS cost makes it an attractive preference for your organizations. There are some cost involved with the implementation and customization of an open-source LMS that an organization should be aware of.

Speaking of LMS implementation costs for Cloud-based LMS, customers pay a subscription fee for the features they actually think are useful for their business. Cloud-based LMSs can be charged by Pay-Per-Use, Pay-Per-User, or else can simply charge a license fee. A common setup fee for a cloud-based LMS is $4,000-$7,000. While in self-hosted or on-premise LMS, you have to pay a one-time, up-front fee to purchase the license. It also involves the setup fees or installation charges to install an LMS. A self-hosted involves implementation cost or set up fees of up to $25,000.

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Determine the total cost of owning LMS

Before evaluating providers to resolve the training and development needs of your company, it’s vital to decide which variables will determine the total cost of owning LMS. LMS vendors will consider these variables while determining the total LMS implementation cost:

LMS Software Costs

Most LMS providers demand on a per learner/per year basis. Also, there are vendors charging per active users or per learner/per user basis. When going for subscription models, it’s crucial to consider the growth factor of your organization. Particularly for high-turnover or growth-oriented businesses, it’s a good idea to look into LMS cost during the initial exploration process to see if an increase in user base is feasible. Even at $10/user, for instance, this oversight could become costly.

Implementation Cost

Learning and development professionals may not always think about LMS implementation costs involved for client support, training, data migration, configuration, or additional services while considering LMS providers. However, these are all vital variables for LMS pricing—by administrators and learners alike. These implementation costs are of utmost importance at the beginning of an agreement, they’ll provide you with a clear idea of what the first year’s costs will be and how the ongoing costs could decrease.

Add-Ons and Integrations cost

When you look for an LMS solution for your desired cost of online course development for specific business requirements make sure there is a use case for add-ons and integrations. This will outline how these additions will benefit future learning needs. In spite of solving for the now, businesses must be able to visualize how an LMS will help evolve the organization’s goals. To help distinguish the required functionalities versus the additional ones, plan your organization’s short and long-term learning goals prior to looking for LMS pricing models. Further, ask vendors about integrations and add-on options that help you to generate accurate data and detailed reports with an improved learning experience.

Take for instance, If you want to integrate an LMS with an existing HRIS software, an LMS vendor may ask for extra or hidden cost to you. It is better to cross-check the LMS pricing model. Similarly, there are other expenses that can go unnoticed such as LMS training cost and support where access to a dedicated service manager is required.

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Get the chance to experience the multiverse of eLearning by knowing more about LMS with Paradiso Solutions now. Please visit our website at, send an email to [email protected] or call us to talk with one of our LMS experts at +1 800 513 5902

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