Estimating LMS Development Cost

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What is LMS Development Cost?

The cost related to developing a learning management system is called LMS development cost. There are three types of costs involved in LMS development: implementation, infrastructure, and ongoing. Moreover, the Learning management system development cost depends upon your development team, whether you develop in-house or outsource.

LMS development cost is directly connected to the selection of technology stack as it makes significant differences in the budget, scalability, and development time. It also depends on the type of deployment option, i.e., cloud-based LMS, self-hosted LMS, and open-source LMS.

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Why is it Important to Estimate the LMS Development Cost?

Investment in an LMS is a big decision for any organization. The cost of course development is an essential factor when deciding which LMS can meet your organization’s learning needs. As a purchasing specialist, you need to justify a new learning technology purchasing decision. You need to decide whether it is a viable investment option for your organization or not.

Moreover, it is necessary to calculate and compare LMS development cost, and LMS buying cost, and how purchasing a new LMS would affect operating income, sales, cost, and overall productivity and profitability. When you decide to switch to a new LMS platform, it is essential to calculate LMS ROI, break-even point, and cost-benefit analysis to make a feasible purchasing decision.

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Factors Determining LMS Costing

When it comes to LMS development cost, it depends on various factors related to LMS costing, including setup fees, maintenance expenses, and other additional costs.

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Setup cost

Setup fees are one-off payments that some LMS providers charge to install an LMS. This may include LMS cost related to consultants, hardware installation, software customization, data migration, and more.

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Maintenance cost

Maintenance is payment related to ongoing maintenance, such as updates, patches, and upgrades. Most of the LMS vendors update the system automatically at no additional cost.

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Other additional costs

It includes other costs like support services, training, custom course creation, and more. Some LMS vendors charge for training your team on how to use the LMS effectively.

LMS Pricing Model

LMS Development Cost plays a crucial role when selecting the one. It is usually priced on two factors the number of users and functionality. The more users using the system and the greater the depth and breadth of functionality, the higher the price. Paradiso LMS provides transparent and easily accessible pricing models, that allows you to easily calculate the costs of procurement and maintenance of the LMS. Our LMS offers LMS pricing alternatives based on deployment type:

On-Premises LMS

The self-hosted LMS allows and controls the hosting server. It offers great customization, scalability, and integration with other locally hosted apps. It involves the following costs:

  • Perpetual licensinga one-time upfront cost that will allow the customer to use the licensed software indefinitely.
  • Setup FeesThe setup fees or installation charges of LMS Development Cost.
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Cloud-based LMS

In cloud-based LMS, you need to pay subscription fees where the LMS is accessed via the web. Most of the advanced LMS fall into a cloud-based and subscription-priced category.

  • Pay per userThis pricing method is useful for those organizations who know the exact number of users taking online training.
  • Pay per active usersUnlike the previous price model, this method involves a payment based on active users and not for all the users registered, just for active users. You will only be charged for the users that log into the system and take the courses during the pay period.
  • LicensingIn this payment method, unlimited users can use the LMS by paying licensing fees for a fixed period, like a month or a year.

Free or open-source LMS

The original code of open source LMS is made freely available; such LMSs are ‘free’ and give you the flexibility to use a best-of-breed content strategy. The installation and customization of open-source LMS require fair technical abilities, and you need some tech-savvy developer to customize the LMS.

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Frequently Asked Questions?

How to choose the Best LMS Pricing Model?

There are so many LMS pricing plans are available in the market, and it is confusing to select the best one that meets your learning needs effectively. Before opting for an LMS try to find the answers to these questions that can help you decide on a pricing plan.

How many learners will use the LMS?

Figure out how many learners will use the LMS Development platform? Will these numbers of learners increase or decrease in the near future or remain stable? How many corporate learners do you expect to enroll in the online training course? Estimate the number of users who will access the system.

How long will each user use the LMS?

Once you have decided the user numbers, try to figure out how long they will use the system? How many learners will use the system during a billing cycle, say, a month, a year?

How many courses you’re going to upload?

If an LMS vendor offers a pricing model based on the number of uploaded courses and space needed for storage. Try to estimate the number of courses or training programs you will provide to your employees and ask for a high or unlimited data storage plan.

Which features and integration are offered by LMS vendor?

Make a list of features and integration you need and perform an LMS feature comparison, and evaluate each system’s cost to determine which options fit your budget and match your business goals. It would help if you also made some LMS feature comparisons with a specific price for each item for good results, which requires you to negotiate the final price.

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