In my last post, we looked at the average cost of learning management systems in 2009. This pricing data is based on the 92 commercial systems included in our online LMS KnowledgeBase 2009: In-Depth Profiles of 90+ Learning Management Systems, with Custom Comparison Across 200+ Features.
It’s wrong to assume that the average pricing listed in my last post is representative of what most LMS vendors charge. LMS pricing is all over the map. For larger implementations, the range between a very low-cost solution and an expensive one can be nearly $15 million.
The charts below provide price range information for the 92 systems covered in our research.
Locally installed, behind-the-firewall, 1-year license:
| Low | High | |
| 500 learners | $499 | $111,630 |
| 10,000 learners | $1,099 | $900,000 |
| 25,000 learners | $1,299 | $2,250,000 |
| 100,000 learners | $1,299 | $9,000,000 |
Locally installed, behind-the-firewall, 3-year cumulative license:
| Low | High | |
| 500 learners | $8,700 | $149,430 |
| 10,000 learners | $12,980 | $1,494,000 |
| 25,000 learners | $12,980 | $3,735,000 |
| 100,000 learners | $12,980 | $14,940,000 |
Hosted (SaaS), 1-year license:
| Low | High | |
| 500 learners | $5,000 | $147,000 |
| 10,000 learners | $11,190 | $480,000 |
| 25,000 learners | $11,190 | $1,200,000 |
| 100,000 learners | $11,190 | $4,800,000 |
Hosted, 3-year cumulative license:
| Low | High | |
| 500 learners | $9,000 | $387,000 |
| 10,000 learners | $16,580 | $1,440,000 |
| 25,000 learners | $16,580 | $3,600,000 |
| 100,000 learners | $16,580 | $14,400,000 |
And lastly, here’s additional average pricing information. The two tables below include average pricing for one- and three-year implementations as well as the cost per user per year.
Average pricing, locally installed, behind-the-firewall:
| 1-year license | 3-year license and maintenance agreement | |
| 500 learners | $31,221 ($62.44 per learner per year) |
$48,230 ($32.15 per learner per year) |
| 10,000 learners | $155,599 ($15.56 per learner per year) |
$260,568 ($8.68 per learner per year) |
| 25,000 learners | $286,768 ($11.47 per learner per year) |
$486,076 ($6.48 per learner per year) |
| 100,000 learners | $738,192 ($7.38 per learner per year) |
$1,204,941 ($4.01 per learner per year) |
Average pricing, hosted (SaaS) by vendor or vendor partner:
| 1-year license | 3-year license and maintenance agreement | |
| 500 learners | $31,136 ($62.27 per learner per year) |
$68,977 ($45.98 per learner per year) |
| 10,000 learners | $129,286 ($12.93 per learner per year) |
$314,444 ($10.48 per learner per year) |
| 25,000 learners | $232,898 ($9.31 per learner per year) |
$568,201 ($7.58 per learner per year) |
| 100,000 learners | $570,625 ($5.70 per learner per year) |
$1,288,053 ($4.29 per learner per year) |
Note: Three-year pricing includes license, maintenance fees, and hosting fees for all three years – including the pricing from year 1 (cumulative).
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