Many LMSs today are considered Software-as-a-Service (SaaS) products, which is a tech-term for internet-based service. In a cloud-hosted system, the vendor is responsible for hosting infrastructure and services. This allows it to scale as needed and ensure updates are delivered promptly.
Consider these 3 arguments for why organisations go for a cloud-based LMS.
- Elastic scalability: A cloud-based system can match your input in real time. This is largely a dynamic process built into the software infrastructure, meaning it isn't a hassle to onboard more users and expand the system.
- Accessibility: This comes in 2 forms. Firstly, employees will be able to access the system on any device, anywhere and at any time. Secondly, the system is more accessible to those with disabilities as the systems are typically moderated by the international WCAG standards.
- Cost effective: Most cloud pricing models are based on what you use which helps lower your operating costs and allows you to budget more accurately and with more flexibility.
On the flip side, a cloud-based system isn't perfect.
- Data sensitivity: The most common concern about cloud-based software is security. Some vendors are based in one location but host in another. It's important to clarify with your vendor where data is hosted and what security certifications they hold.
- Control: Local (or on-premise) hosting is the only solution that offers you 'total control' of the system and your data. If you want full control of security, customisation, development and integrations, cloud-based likely isn't for you.
- Long term costs: Cloud-based systems have a higher total cost of ownership in the long run. This is predominately due to maintenance and management costs accumulating over time. If you have the internal capabilities to handle this (many don't) then a local hosted system may be more cost-effective.
Cloud-based learning management systems are useful to people from all walks of life. In the past, it was common for security-conscious organisations to utilise a locally hosted LMS. Today, giants such as AWS and Microsoft have made supplying affordable and highly secure cloud infrastructure an art form.
At the end of the day, an online LMS has almost endless applications. To know whether one would benefit you comes down to why you are implementing an LMS and what you will need to deliver the optimal learning experience. Consider these 2 prominent examples.
- Educational institutions: Universities manage thousands of students, often in multiple locations across the world and often have to accommodate for those who cannot attend in person. Bearing this in mind, it's easy to see how a cloud-hosted learning solution can simplify the task.
- Enterprises and organisations: There's endless room for growth and development amongst employees. That said, many organisations exist in multiple locations or can't risk the disruption to productivity that face-to-face (F2F) training warrants. Again, it's easy to see how an online learning solution comes to the rescue.
Most cloud-based learning software is priced per-user on a subscription basis, helping provide organisations with room to grow. Always consider the typical pricing models and when they're best used:

In addition to these, remember that many vendors hide extra charges that are revealed after you've signed on the dotted lined. These hidden costs can be for training, support, maintenance and content creation.
When it comes to cloud-based LMS features, there are some obvious and not-so-obvious benefits to consider. Take these 5 for example.
- Bring-your-own-device (BYOD): There's no point in anytime access if you can't access the system anywhere. A cloud-based LMS should be mobile responsive and device agnostic.
- Self-registration: If your organisation offers external training or is looking to provide training to the general public, self-registration ensures accurate data is collected and sidesteps the issue of learners not being signed up at all.
- Third party integrations: If your LMS doesn't play well with other systems, your data won't align. Instead of manually uploading a batch of a new users, when a new user is entered into a database integrated with your LMS, they will be automatically added to the system.
- Automated notifications: Keeping up to date with learning initiatives and mandatory training can be challenging across a distributed and diverse workforce. Automated reminders and notifications ensure users are always informed when they need to take action, wherever they are.
- Intuitive UI & UX: A strong user interface (UI) and user experience (UX) helps guarantee user buy-in, reduces the system learning curve and helps (rather than hinders) the quality and quantity of materials produced by tutors.
For a more in-depth look at cloud-based learning management solutions, have a read of the full article.