My last post examined the average three-year, cumulative costs of commercial learning management systems in installed implementations from 2005 to 2007. This article will look at the the same pricing scenarios for hosted implementations.
Average prices listed below stem from our research on 52 commercial LMSs in 2005 and 2006 and the 63 systems currently covered in our LMS KnowledgeBase.
The chart above shows that, over the last three years, the average, three-year cumulative costs of hosted learning management systems have dropped even faster than the cost of installed implementations:
- 500 users: 40%
- 10,000 users: 23%
- 25,000 users: 25%
- 100,000 users: 21%
Adjusting the numbers above for inflation (2.5% per year) produces a greater decline:
- 500 users: 45%
- 10,000 users: 28%
- 25,000 users: 30%
- 100,000 users: 26%
As was the case with installed implementations, the largest drop has occured in the smallest, 500 user, implementations.
This is good news for small organizations. Years ago, they had few options that matched their limited budgets. According to the current data, the average price of an LMS for 500 user implementations will come in at around $46 per user per year, a price within budget for most organizations.
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{ 1 comment… read it below or add one }
Hello Richard,
I assume you are strictly looking at lms license costs, implementation/configuration costs and not authoring or content migration costs?
thanks for this information,
Jim