Hosting refers to how an LMS stores data. There are two types of hosting: self-hosted and cloud-based. A big difference exists between the two beyond just how and where your data resides – namely accessibility, costs, ownership and security.  

A self-hosted LMS (sometimes called on-premise or locally hosted) stores its data within your organisation’s walls. Self-hosting means the system is sold to your organisation by a supplier, at which point they retain no responsibility for the upkeep of the system.  

• Advantages: Hosting an LMS through your own servers comes with a few key benefits, mostly underpinned by the power of choice. These include greater control and customisation, stronger security options, no service fees, and the ability to decide on the server location.
• Disadvantages: While it has its perks, it’s not all sunshine and rainbows. Generally self-hosted means restricted accessibility, greater maintenance requirements and costs, and a need for operational expertise in-house.
• Who is it best for? A self-hosted system is best suited to those with a dedicated IT team, those with the space and resources to maintain servers and those who have a domain name to spin the LMS off.

Cloud-based systems are hosted on the cloud and accessed via the internet. Data is stored on a supplier’s secure server. Often these come under the umbrella of Software-as-a-Service (SaaS). The vendor provides maintenance, support, development and storage - for a fee.  

• Advantages: Aside from technical support, cloud-based has a lot to offer including cost-effectiveness, security (thanks to SSO and industry standards), low maintenance, and better scalability.
• Disadvantages: These can vary from vendor to vendor, but you may find some cons to the cloud-based pros. These include internet reliance, less flexible customisation and paywalled support.
• Who is best for? Organisations with users who have access to good internet, those who don’t mind the system being more of a lease than a buy, and those who need to meet super strict security standards.

Software will always come with trade-offs to you and your decision-making team. That’s why it’s important to determine what’s a must have and what’s worth sacrificing. Here are some factors to think about when deciding where to host your LMS:   

• Use Case: Common uses of an LMS include employee training, third-party training, commoditised content and consulting. Most vendors will be able to supply success stories or case studies of their platform, so be sure to ask for them to get a sense of how others use the system and whether it fits your use case.
• Features: You want to consider which LMS features you need to meet your use case. You might need features to support workforce plans (learning pathways, skills mapping), compliance (external facilitators or third-party content) or just general development opportunities.
• Budget: It’s best to create a realistic profile of your needs. You can then determine your budget which will in turn determine your hosting setup, supplier, contract length and the depth of features you can ultimately afford. It’s also key to think long-term. You won’t always appreciate the value of certain features until enough time has passed to produce quantifiable results.

Choosing an LMS is more nuanced than deciding between apples and oranges. It often comes down to more considerations than just what you ‘want’ to do.  

• Accessibility vs availability: A good LMS should have a smooth user experience for all users, whether learner or instructor. A standardised interface also ensures the experience is consistent throughout a learner’s academic career. Standardisation and access like this might be less available with a self-hosted system.
• Customisations vs configuration: Customisation requires configuration, but configuration doesn’t mean customisation. Configuration means you can do something yourself (usually superficial changes to the look and feel of the platform) One or both might cost you with a vendor, so it’s important to understand what you need and what you’re paying for.
• Try before you buy: Self-hosted LMSs are probably the biggest investment you’ll make in terms of time, resources and money. This is why test driving the platform is critical before you sign on the dotted line. Keep an eye on the user interface, support services and functionality of features.

At the end of the day, choosing between a self-hosted and cloud-based system isn’t a simple binary choice. Ultimately, it’s important to assess an LMS on the functionality it actually provides – not just what a supplier says it offers.  
 
For a more in-depth look at LMS hosting, have a read of the full article.