In recent years, more and more businesses have been moving to the cloud because it’s much more cost-effective than maintaining their resources. You only pay for what you use and can easily expand your storage as needed.
Educational companies are no exception. Statistics show that by 2029, cloud-based learning management systems (LMSs) are expected to grow at a CAGR of 24.59%. In Europe alone, cloud-based LMS adoption reached 12.5% in 2023. Educational institutions are opting for cloud-based learning management systems because they offer better accessibility, cost-effectiveness, and scalability compared to on-premise solutions.
Curious about why you should consider a cloud-based LMS? At GoodCore, we help educational companies implement custom solutions, with several successful projects under our belt. Drawing from our experience, we’ll explain why cloud-based LMSs are becoming increasingly popular and which organisations can benefit most from adopting them. Besides, you can check out our detailed case study to see how it all works in practice.
What Is a Cloud-Based LMS and How Does It Differ from The On-Premise One?
A Cloud-Based Learning Management System (LMS) is an online platform created to deliver, manage, and track educational and training content from anywhere in the world via an internet connection. It varies from traditional on-premise LMS solutions, which require physical installation on an organisation’s servers and a robust IT infrastructure. A cloud-based LMS operates entirely over the Internet.
Simply put, a custom cloud-based learning management system runs on a remote server, so you don’t have to worry about maintenance—it’s taken care of by the cloud service provider. Such solutions are also flexible. You can easily adjust the service based on your needs, without worrying about running out of capacity or needing more infrastructure.
In contrast, an on-premise LMS needs your IT team to handle installation, maintenance, and updates, which can be costly and complicated. They are typically accessible only within your organisation’s network, limiting remote learning. They also offer less flexibility, requiring manual updates and maintenance that can disrupt learning.
On-Premise and Cloud-Based Learning Management System Comparison
To help you see the key differences between cloud-based and on-premise learning management systems, we’ve put together this comparison table.
| Aspect | On-Premise LMS | Cloud-Based LMS |
| Deployment | Installed on local servers; requires robust IT expertise and hardware. | Hosted by a cloud provider; minimal local IT involvement required. |
| Accessibility | Accessible only within your network, inhibiting employee reach. | Accessible from anywhere with an internet connection, enabling flexible learning environments. |
| Scalability | Limited scalability; challenging to accommodate growth. | Highly scalable; easily adapts to changing training and user needs. |
| Cost | High upfront and managerial costs for hardware, software, and IT staff. | Upfront costs are minimised due to a subscription-based model. |
| Total Cost of Ownership (TCO) | Potentially higher TCO due to ongoing maintenance and IT support. | Lower TCO with predictable costs and a reduced IT burden. |
| Maintenance | Requires dedicated and skilled IT staff for maintenance and updates. | Updates and maintenance handled by the provider. |
| Security | In-house security measures are essential; responsibility falls on your organisation. | Cloud providers implement robust security measures, reducing the burden on your organisation. |
| Data Backup | Requires a custom data backup and recovery plan, increasing risk of data loss. | Automatic data backup and disaster recovery included, ensuring data safety. |
| Collaboration | Additional tools may be needed for effective collaboration. | Built-in collaboration features enhance interaction between learners and instructors. |
| Integration | Often involves complex integration with other systems. | Easier integration with other cloud-based applications, simplifying the process. |
5 Advantages of a Cloud-Based LMS to Consider
From our experience working with educational institutions, on-premise Learning Management Systems can complicate the process for both teachers and students. For example, educators may require advanced technical skills to manage the content due to various complexities. Moreover, with remote learning being crucial for students now more than ever, on-premise solutions can’t meet this need. That’s why a cloud-based LMS is often a more efficient and user-friendly choice.
1. It is Accessible Anytime, Anywhere
Post the COVID-19 pandemic, remote learning has sky-rocketed making it crucial for educational institutions to have access to reliable, flexible, and accessible learning platforms. The shift toward online education has made any-time, anywhere access a critical feature of modern LMS. This is apparent by 77% considering LMS essential to their teaching.
This is taken a step forward with the growing trend of mobile learning, with 27% of internet users relying exclusively on mobile devices. This is almost twice the 14% of users who use only desktops. This indicates a growing preference for learning on the go.
A cloud-based LMS presents undefeated remote learning capabilities. This allows students and educators to access learning materials, submit assignments, and participate in discussions from any location, and any device with internet access. This level of flexibility is essential for today’s dynamic learning environments.
2. It is More Cost-Effective
Perhaps one of the strongest points of a cloud-based LMS lies in its cost-effectiveness. A locally hosted LMS requires serious funding for hardware, software, and IT personnel to support the system and troubleshoot failures. In the case of cloud-based systems, those burdens are taken out by the vendor, and this pulls down operational costs.
Vendors in cloud-based LMS do everything related to the maintenance of systems, such as upgrades, backups, and security—all of which are quite involving. This comes with cost savings associated, and at the same time, the LMS is updated on a continuous basis to ensure that it is available 24/7.
3. It Can Easily Grow with Your Educational Needs
The salient feature of any cloud-based LMS is that it can scale to meet demand. In an educational institute, needs are never constant, either due to changes in the number of students or by adding new courses, meaning you will require more computing power.
Cloud providers also have flexible options to scale out or in with automatic capabilities to allocate additional computing power, storage, and bandwidth when needed. This way, the LMS will remain scalable and applicable without a decrease in performance, as user loads increase.
Cloud-based LMSs can be scaled up as institutions expand offerings or go through periods of growth without the need for a major hardware infrastructure upgrade or additional IT infrastructure.
4. No Manual Updates and Maintenance are Needed
While the on-premise systems require manual intervention for installing the updates, applying security patches, and software fixes, the cloud-based LMS platforms do it on their own. This way, it reduces load on the IT staff and risk of minimum human errors for maintenance procedures.
Cloud-based LMS ensures that the user is constantly in touch with updated features and upgrade, without getting down or disturbed through any other learning activity.
Finally, an increased level of security and reliability of an LMS since the software will have regular and timely updates, so that data regarding the institution is well protected and conforms to the best standards and rules.
5. Promotes Collaboration
Cloud-based LMS are developed in such a way that it has collaboration tools where the students and teachers can easily collaborate with each other. Discussion forums, group projects, instant feedback, and communication tools also promote collaborative learning.
Furthermore, a cloud-based LMS, which is interactive at its very base, invites the active involvement of a student into the ongoing discussions and interactions with his peers and faculty. This is value addition to his learning process and creates good educational value.
Cloud-Based Learning Management System Use Cases
A cloud-based Learning Management System is especially useful in several situations. Here are a few examples of such cases:
Rapidly Growing Companies
When your company grows rapidly, so do your needs for training and development. When new employees are hired or new teams are launched, a cloud-based LMS can quickly adjust to meet the increased demand for your resources. This flexibility ensures that all employees receive the right training modules. Plus, the cloud-based system makes it easy to update and add new content, which can help your company stay ahead in fast-changing industries.
Educational Institutions Diversifying Their Reach
One uniform learning experience across multiple geographic locations is a challenge for many global companies or or universities with several branches. Nonetheless, a cloud-based LMS can serve as a centralised system that can be accessed from anywhere. This is particularly useful for institutions that may want to expand their reach by offering online courses to students around the globe. It will enable every learner equal access to educational content and foster perfect collaboration among students, faculty, and administrators regardless of geographical distances.
Organisations with Remote and Hybrid Workforce
Since remote and hybrid work models are more popular these days, it is fundamental for organisations to have a centralised learning hub. Cloud-based LMS fits the bill perfectly as it offers employees and students a single platform by which to access training material, attend virtual classes, and work together with their teams.
Microlearning and Just-in-Time Training
Teachers and students need quick access to information. Thus, a cloud-based LMS is perfect for this, especially when it comes to microlearning and just-in-time training. This method breaks down learning into small, focused chunks that address specific skills or knowledge gaps, allowing employees to learn exactly what they need when they need it. This approach boosts productivity and supports a continuous learning environment. Plus, the flexibility of a cloud-based LMS means learners can access these modules anytime and from any device.
3 Examples of Cloud-Based LMSs
Let’s explore how popular cloud-based LMSs work and what features they offer.
- Docebo
Docebo is a robust, cloud-based LMS that provides outstanding support to enterprises willing to raise the standards of their training and development programs. It is known for its AI-powered capabilities, which help automate learning processes and deliver personalised learning experiences.
Key Features:
- AI-driven learning paths that respond to user behaviour.
- Extensive integration with other enterprise software.
- Robust analytics and reporting tools.
- Mobile app for learning on the move.
- Social learning which includes discussion forums and peer feedback
- Moodle
Moodle is an open-source LMS hosted on the cloud and has seen massive user acceptance by institutions and organisations worldwide. It provides flexible and customisable settings, which may be tailored to meet the particular needs of learning environments.
Core Features:
- Highly flexible and extensible by many plugins and themes.
- Strong community backup and development of core software.
- A mobile application that allows easy access to courses and material.
- Collaboration tools, such as wikis, forums, and group activities.
- Supports multimedia, quizzes, and other content types
- TalentLMS
TalentLMS is a cloud-based learning management system that has been designed to be simple yet extremely powerful, targeting small and medium-sized businesses, as well as corporate training solutions and educational training sectors. It is intended to provide an intuitive user experience and quick setup.
Key Features:
- Easy course creation with a drag-and-drop interface.
- Gamification features that make courses more interactive.
- In-built video conferencing tools that facilitate virtual classrooms.
- SCORM-compliant to provide standard e-learning.
- Advanced reporting and analytics to measure learner’s progress
How We Developed a Cloud-Based LMS That Simplified Training and Boosted Engagement
Our client, a UK-based consultancy, specialises in implementing educational practices across various sectors. Faced with challenges from Winchester University’s outdated Moodle LMS, they turned to us at GoodCore for a solution.
The Challenge
Winchester University’s Faculty of Arts struggled with an old Moodle deployment that was overly complex and inefficient for producing interactive content. They reported wasting crucial time managing the system’s limitations. Thus, necessitating a more intuitive solution.
The Solution
GoodCore developed a bespoke, end-to-end, cloud-based LMS to address these issues, offering a comprehensive solution for university management, administrators, teachers, and students.
Key components included:
- Content Authoring Tool: A desktop-based application with a point-and-click interface allows educators to create interactive content without specialised programming skills.
- Student Web Portal: It provides students with access to course materials, learning activities, and exams. The exam viewer featured rich media such as images and videos, enhancing interactivity.
- Sophisticated Marking Engine: It supports various question types and provides detailed results, streamlining the grading process.
The Impact
The new LMS significantly improved the educational experience at Winchester University. Teachers and administrators found the system more manageable. This also allowed students to enjoy a more engaging, interactive learning environment. The cloud-based solution addressed the inefficiencies of the old system and provided a modern, scalable platform that adapted to the university’s needs.
Key takeaways
As educational needs keep changing and evolving, adopting a cloud-based LMS has proven to deliver significant benefits; it tackles common issues related to accessibility, cost, scalability, and maintenance that are often associated with on-premises systems. When it comes to learning and teaching, such solutions deliver better experiences thanks to seamless access from any device and simplicity. Moreover, students can choose personalised learning paths and facilitate collaboration through integrated tools.
GoodCore has served businesses all around the world for over 19 years with 100% customer satisfaction from over 100 successful projects. Our experience includes the development of custom cloud-based LMS platforms, as exemplified by our work with Winchester University. We use advanced technologies such as React and Vue.js for Frontend development, PHP and Java for Backend development and MySQL and MongoDB for Database development.
Our competitive advantage is based on quality LMS development for specific educational goals and objectives, all to ensure not only functions but ease of use. Contact us today to get a cloud-based learning management system designed specifically for your business.
FAQs
Can I customise a cloud-based LMS?
Yes, you can customise a cloud-based LMS to fit your organisation’s specific needs. Many cloud-based LMS platforms offer a range of customisation options, including branding, user interface adjustments, and personalised learning paths. You can typically modify features such as course layouts, dashboards, and reporting tools. Advanced systems may also support custom integrations with third-party applications and APIs. However, the extent of customisation can vary between providers, so it’s essential to evaluate the flexibility and features offered by your chosen LMS.
What features should I look for in a cloud-based LMS?
When selecting a cloud-based LMS, key features to consider include user-friendly interface, scalability, and mobile accessibility to ensure learners can engage from various devices. Look for strong reporting and analytics capabilities to track progress and outcomes. Integration options with other tools such as HR systems or content libraries are crucial for seamless workflows. Built-in collaboration tools, like discussion forums and messaging, enhance interaction. Also, consider security features, including data encryption and compliance with regulations, to protect sensitive information.
Can I integrate a cloud-based LMS with other systems?
Yes, cloud-based LMS platforms generally offer robust integration capabilities with other systems. Most modern LMS solutions support integration with HR systems, CRM tools, content management systems, and productivity applications through APIs or pre-built connectors. This interoperability allows for streamlined data sharing, automated processes, and enhanced functionality across your organisation’s technology stack. It’s advisable to review the specific integration options and compatibility of the LMS you’re considering to ensure it meets your integration needs.
How can a cloud-based LMS improve employee engagement?
A cloud-based LMS can significantly enhance employee engagement through several key features. Its accessibility from any location allows employees to learn at their convenience, fostering a more flexible and personalised learning experience. Interactive elements like gamification, social learning, and multimedia content can make learning more engaging. Real-time feedback and progress tracking help employees stay motivated. Additionally, the ability to tailor learning paths and provide relevant content can keep employees more invested in their professional development and aligned with organisational goals.
How long does it take to implement a cloud-based LMS?
The implementation timeline for a cloud-based LMS can vary depending on factors such as the complexity of your requirements, the size of your organisation, and the level of customisation needed. On average, a standard implementation can take from a few weeks to a couple of months. This period includes phases such as planning, configuration, data migration, and user training. For more complex setups involving extensive customisation or integrations, the process may take longer. It’s essential to work closely with your LMS provider to establish a realistic timeline and ensure a smooth transition.
Is a cloud-based LMS suitable for small businesses?
Yes, a cloud-based LMS is often highly suitable for small businesses. Its scalability and subscription-based pricing model make it cost-effective, eliminating the need for significant upfront investment in hardware or IT infrastructure. Cloud-based LMS platforms are typically user-friendly and require minimal IT support, which is advantageous for small businesses with limited technical resources. Additionally, the flexibility and accessibility of cloud-based systems allow small businesses to offer training and development opportunities efficiently, regardless of their size or location.
