SAAS or Hosted LMS: Which LMS Solution is Best for You in 2022?

5 Minutes Read

Organizations can no longer ignore the value of a good learning management system. In this digital age, LMS has become an essential tool for documentation, administration, automation, tracking, and reporting. LMS also helps in the delivery of training programs, educational courses, or learning and development programs. 

A learning management system, like much of your data these days, is stored in the cloud. It's not easy to pick the ideal LMS out of the hundreds on the market. Apart from considerations such as LMS cost and functionality, you must also be aware of the various types of LMSs.

Furthermore, selecting the LMS solution — SaaS or Hosted LMS adds to that superhuman endeavor.

What is a SaaS LMS?

SAAS or Hosted LMS

SaaS, which stands for software as a service, is a new term in the LMS sector. Saas LMS software application is also called On-demand or cloud LMS is a type of learning management system that is hosted on the provider's servers and made available as a service. When your software provider hosts your LMS on their remotely situated servers, you get an LMS product as a service.

To begin using the LMS software application, all you have to do is sign in. Furthermore, because the cloud LMS is based on a SaaS model, you will often be charged an ongoing subscription to use it.

Benefits of SaaS LMS

Predictable Costs

This is the first benefit that LMS purchasers notice. Not only is the initial cost (base price) low in most cases, but you also save time on things like installation and troubleshooting. With a cloud LMS, you know exactly how much you'll have to pay each month. Even for small organizations, many solutions are incredibly cost-effective.

Easy deployment

Everything has already been set up and is ready to use because the LMS is hosted in the cloud. The addition of your production URL and the number of users you have will be the only things left to do. Even if you specify your requirements, deploying the system for your usage does not take long. As a result of the SaaS LMS, one can deploy their staff training software more quickly.


The SaaS LMS is highly scalable, and infinite growth is a valuable feature. You could instantly 10x your user base, and it will scale with you without requiring any or many actions on your part.

Easy to Maintain

The majority of the technological difficulties of regular maintenance are handled by your SaaS hosting provider, leaving you with few or no maintenance responsibilities. You won't have to worry about debugging faults or other technological issues with a cloud LMS. Your LMS provider will take care of ongoing software updates while you concentrate on providing knowledge to your users.

Easy Integrations

Even the most powerful LMS software application can't function alone. It must communicate with other key software, such as your CRM and billing and subscription tool, to keep you in sync with the organization's other critical business processes. To accomplish holistic business operations, look for an LMS that allows for seamless interaction with your existing applications.

Flexible Use and Storage

A clear advantage of having SaaS LMS software application is that users can access it from any location and on any device. The only need is that you to have access to the internet.

You won't have to save data on your PCs or devices if you use a cloud-based LMS. The majority of your data, including photographs and material, will be automatically uploaded to the LMS, saving you time and space on your hard discs.

Easy To use

This LMS solution is built for an audience that wants to get up and running immediately, so SaaS LMSs have a minimal learning curve.

A solid SaaS LMS software application will also ensure the following:

  • Monitoring and tracking performance is simple.
  • A completely automated learning system.
  • Gamification and other interactive learning features have increased user retention.
  • Standards compliance and security.

Secure and Safe System

LMS SaaS system for e-learning App development provides excellent security for your content. With this LMS, content creators can successfully communicate and collaborate remotely without fear of data theft.

Drawbacks of SaaS LMS

Limited customization

When compared to a self-hosted LMS, the SaaS LMS is not as "completely" customizable. The claim that SaaS LMSs have fewer customization choices is false. From basic stylistic options to CSS, reputable providers offer a variety of options to assist you to match the LMS to your company operations.

Limited Control

Another disadvantage of a cloud LMS is the lack of control you have over your course platform. 

Soft Costs

You should also be aware of any additional expenses, such as:

  • Fee for installation or set-up
  • Additional software or hardware is required.
  • Upgrades and customization
  • Costs of additional training
  • Maintenance and customer support charges
  • Costs of cancellation and return

When to go for SaaS LMS?

The SaaS LMS may be the ideal alternative if you're looking for a cost-effective LMS solution. SaaS-based solutions are an excellent alternative for any company, regardless of size or budget, because they have low start-up costs and require little maintenance.

What is a Hosted LMS?

Hosted LMS

Hosted LMS, on-premise, or self-deployed LMS is when you install hardware or software on your servers to access it. That is, your LMS vendor sells you eLearning software as a product, and you can have it installed on your computer. To put it another way, you run your own LMS on your servers. Typically, pricing is one-time only (annual license fee plus the price for upgrades and maintenance.

Benefits of Hosted LMS

Security of Data and Content

The value of data and privacy cannot be overstated. It's not a good idea to concede this issue, is it?

When you self-host your LMS software, there is no third-party intervention. That implies the data and training content of your learners will be as safe. This does not mean other hosting options do not lack security features. However, more levels of security procedures can be added to limit information access.

Total Command of the Software

Because you own the software locally, you have virtually complete control over it. Everything is up to you, from how it works to how much downtime and maintenance it requires. It also gives control over:

Customization: You may construct your platform from the ground up with a self-hosted LMS, you have more freedom to personalize it.

Storage: Depending on your customer base, you can customize the storage capacity.

Long-term cost-effectiveness

An on-premise LMS may have higher initial setup costs than a SaaS LMS. Apart from maintenance charges, you won't have to pay anything extra once you've invested in a self-hosted LMS (like soft costs).

Drawbacks of Hosted LMS

It isn't up to date with the times.

On-premise LMSs predate the SaaS LMS, they may appear obsolete when compared to the several benefits and increasing popularity of cloud-based LMSs.

Dependence on programmers and developers

The requirement for IT experience is a significant difference between the SaaS and installation models. You can't invest in a hosted LMS unless you have in-house IT resources.

Set-up takes a long time.

One of the key reasons why on-premise solutions are not preferred is because of this. Because of the increased developer dependency, installation takes a lengthy time, ranging from a few weeks to months.

When to go for Hosted LMS?

The employee training software can be installed on-premises by any mid-sized industry or organization. Above all, the focus is once again on the security of training content and user data. When you want autonomy, administrative control, larger customization, and increased business confidentiality, this is the ideal choice.

Revolutionize the next generation of talent by collaborating with us to create solutions that enhance the way we learn with our Custom Edtech Industry services.

LMS Solution Pricing Models

SaaS or Hosted LMS

There are a variety of cloud learning management systems to choose from. The costs necessary to use them are one method to distinguish them.

Some companies offer unlimited courses and users, while others offer programs based on the number of users. These are divided into two categories: license model and pay-per-user model.

Wrapping Up

There's no better method to offer content than through a learning management system or LMS solution. Every company is different, and each has its own set of requirements. 

We came to a straightforward conclusion after a thorough LMS Hosting Comparison of the two platforms. Cloud-hosted SaaS-based learning management systems are more cost-effective, easier to use and provide more flexibility and time savings. They're also more suited to a future-forward learning strategy that uses the cloud in the same way the rest of our technology does.

The hosted LMS served as a suitable home for the original learning management system, but now it's time to retire it. It's important to evaluate where you want your future-friendly learning program to live as your learning grows, scales and becomes more inventive.

We, at Terasol Technologies, cater to the needs and requirements of your business. We offer you LMS solutions according to your niche, it may be SaaS or Hosted learning management solution. Allow our experts to assist you in achieving, retaining, and increasing recurring revenue for your firm while you focus on creating your learning platform and catering to your consumers.