How to Buy a Low-Cost Learning Management System
Bryan Chapman
Chief Learning Strategist Chapman Alliance
bryan@chapmanalliance.com
Scope – Understanding Costs
LMS Average Licensing Costs – Locally Installed
1st year license
3 year license and maintenance agreement
500 Learners 10,000 Learners
25,000 Learners
$36,031
($72 per learner)
$56,967
($38 per learner)
$157,597
($16 per learner)
$261,385
($9 per learner)
$291,554
($12 per learner)
$463,108
($6 per learner)
100,000 Learners
$676,872
($7 per learner)
$1,132,118
($4 per learner)
Source: LMS KnowlegeBase: In Depth Profiles of 60+ Learning Management Systems, With Custom Comparison Across 200+ Features, published by Brandon Hall Research
Scope – Understanding Costs
LMS Average Licensing Costs – Hosted
1st year license
3 year license and maintenance agreement
500 Learners 10,000 Learners
25,000 Learners
$44,528
($90 per learner)
$96,387
($64 per learner)
$160,463
($16 per learner)
$348,378
($12 per learner)
$270.662
($11 per learner)
$592,816
($8 per learner)
100,000 Learners
$681,562
($7 per learner)
$1,383,964
($5 per learner)
Source: LMS KnowlegeBase: In Depth Profiles of 60+ Learning Management Systems, With Custom Comparison Across 200+ Features, published by Brandon Hall Research
Systems that Qualify as Low Cost
Absorb LMS (Blatant Media e-Learning) Acadia HCS (Acadia HCS) Allen Communication Learning Portal Avilar WebMentor Course-Source (Course-Source Limited) CourseMill LMS (Trivantis) DOTS (WebRaven) ED Training Platform (Strategia) Generation 21 Enterprise InforSource (InfoSource) Inquisiq EX (ICS Learning Group Inc.) IntraLearn XE (IntraLearn Software) Isoph Blue (Learn Something) Kallidus LMS (e2train) LearnerWeb (MaxIT) LearnShare LMS (Learnshare) LMS Live (Wizdom Systems) MindFlash E-Learning System
NetDimensions EKP Bronze OnPoint Learning & Performance Suite On-Tracker LMS (Interactive Solutions) OutStart Evolution LMS (OutStart) SSElearn Portal (SSE) Syntrio Enterprise (Syntrio) TeraLearn LMS (Teralearn.com) The Learning Manager (Worldwide Interactive) Tracker.Net (Platte Canyon) TrainingPartner (Geometrix) TrainingMine (Frontline Data Solutions) Upside LMS (Upside Learning Solutions) Virtual Training Assistant (RISC)
Cost vs. Functionality of learning platform
Talent Management
E-commerce Regulatory & Compliance Tracking Reporting Advanced Classroom Management Multiple Portals Language support
Skill-Gap Analysis
Analytics Reusable Learning Content Deep Backoffice Integration
Testing
Informal Learning Repository Content Development Tools
3rd party content
Launch e-learning Happy Sheet Collaborative Learning
Advanced Question Types
Certification
$2 Million Solution
• • • •
Large Finance Company 25,000 Learners Scope Creep Should have paid about $500,000
How to Reduce the Cost of your LMS
1. Look for systems that price below average 2. Avoid Feature Creep 3. Choose an “out-of-the-box” solution 4. Extend an existing license to include your division 5. Share a license with another company or group 6. Propose new pricing arrangements 7. Consider buying just the core functionality of a modular LMS (phased approach)
Low-Cost LMS: Top Ten List of Requirements
1. 2. 3. Full range of functionality at a much lower price point Creative Licensing (pay as you go) Most users need only basic integration, usually simple batch enrollment 4. Low-cost users typically look at hosted solutions vs. locally installed (because of lack of dedicated, internal support staff) 5. Basic, built-in content development and assessment tools (turnkey system) 6. Interoperability with popular desktop authoring tools (Flash, Dreamweaver, Captivate, ToolBook, Lectora Publisher, etc.) 7. Low-cost users frequently request interoperability with thirdparty courseware libraries 8. Mostly classroom management and launching online courses 9. Less focus on advanced performance and talent management 10. Quick installation
Drawing
$495 retail value