What are the Factors that Determine LMS Development Cost?

What is LMS development cost? 

When it comes to LMS development cost, many factors affect determining it, including implementation, infrastructure, and ongoing cost. LMS development cost can vary depending on the selection of technology stack development team, whether you develop in-house or outsource. These factors make big differences in the budget, scalability and development time., the deployment type such as cloud-based LMS, self-hosted LMS, and open-source LMS affects the LMS development cost.  

Should I buy or build an LMS? 

Building an LMS is a long process and involves a large amount of LMS development cost, while on the other side, buying an LMS is a much cheaper and convenient option. It is crucial for any organization to decide whether to build or buy an LMS. If you have a huge amount of money, time, and specialized workforce, you can opt for developing your own LMS, but it is good to buy an LMS from a well-known LMS vendor. Moreover 

Why is it essential to determine the cost of an LMS? 

Whether you want to buy or build an LMS, it is always advisable to do research on LMS costing. Building an LMS from scratch involves various costs, and buying an LMS had some costs too. As a purchase manager, you need to make the correct decision for your organization, and for that, you need to calculate and compare LMS development cost, and LMS buying cost and how developing or purchasing an LMS would affect overall productivity and profitability.  

Factors determining LMS costing 

There are various types of costs involved in LMS development cost and purchasing an LMS. LMS development cost includes setup fees, maintenance expenses, and other additional costs. While buying an LMS includes procurement cost, set up fees, maintenance depends on the pricing model offered by the LMS vendor. Let’s discuss LMS costing in more detail. 

Set up cost 

It includes installation cost, consultation, customization, data migration, and more. It also includes charges for additional support services, such as email or phone support options.   

Maintenance cost 

Maintenance usually costs around 15 percent of the initial cost of the LMS, which includes costs related to updates, patches, and upgrades. 

Other costs:  

It includes other costs like support services, training, custom course creation, and more.  

LMS Pricing model  

LMS vendors offer a variety of pricing models, as all LMS vendors have different pricing policies, but most of them offer pricing models on the basis of deployment types such as on-premise LMS, Cloud-based LMS, and open source or free LMS.   

On-Premise LMS 

It is a self-hosted LMS that comes up with great customization, scalability, and integration with other locally hosted apps. It involves the following costs:  

1. Perpetual licensing: a one-time upfront cost that will allow the customer to use the licensed software indefinitely.  
2. Setup Fees: The setup fees or installation charges to install an LMS 

Cloud-based LMS: 

In cloud base LMS, you need to pay subscription fees where the LMS is accessed via the web.  

1. Pay per user : It involves paying for each person that uses the LMS. This pricing method is useful for those organizations who know the exact number of users taking online training.   
2. Pay per active users: It involves a payment based on active users that log into the system and take the courses during the pay period. 
3. Licensing: In 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 :

Open-source LMS involves installation and customization costs, it requires fair technical abilities, and you need some tech-savvy developer to customize the LMS. 

Closure  

If you are thinking about buying an LMS, the first thing you must consider is LMS costing, which plays a crucial role in the whole process. Moreover, if you want to build your own LMS, then you must be aware of LMS development costs. Choose the best LMS; Paradiso LMS provides transparent and easily accessible pricing models that allows you to easily calculate the costs of procurement and maintenance of the LMS.