Average Pricing for Learning Management Systems in 2009

by Richard Nantel on May 28, 2009

We’ll be releasing the 2009 edition of our annual Low-Cost Learning Management Systems report in a couple of weeks. I’m working in the LMS KnowledgeBase today to identify the systems that will be included in this research.

Requirements to be featured in this report are as follows:

1. The vendor must have submitted three-year, cumulative pricing for four sizes of implementations:

  • Small (500 registered users)
  • Medium (10,000 registered users)
  • Large (25,000 registered users)
  • Very large (100,000 registered users)

Pricing submitted could be for either hosted (Saas) implementations, installed implementations, or both.

2. The pricing must fall below average in all four implementations sizes. Being lower priced for only some implementations does not qualify a system to be included in this research.

Based on the 92 systems we cover, here’s the average pricing for learning management systems this year:

HOSTED (Saas) IMPLEMENTATIONS:

  • 500 users: $68,977
  • 10,000 users: $314,444
  • 25,000 users: $568,201
  • 100,000 users: $1,288,054

INSTALLED IMPLEMENTATIONS:

  • 500 users: $48,231
  • 10,000 users: $260,569
  • 25,000 users: $486,076
  • 100,000 users: $1,204,942

Out of 92 systems featured in our research, 34 qualify to be included in the 2009 edition of the Low-Cost Learning Management Systems report.

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{ 7 trackbacks }

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June 1, 2009 at 10:23 am
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A Dive Into Learning Management System Pricing - Richard Nantel
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Pricing for Low-Cost Learning Management Systems in 2009
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July 6, 2009 at 12:28 pm
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August 12, 2009 at 1:51 pm

{ 10 comments… read them below or add one }

Dan Medakovic May 29, 2009 at 8:40 am

Hi Richard!
How are things??

Are you aware of our unlimited user pricing model? It’s based on learning transactions not the number of users… not sure if this was ever captured in your reviews of LearnFlex…

I’m in Quebec City Sunday to Tuesday – feel like driving out for dinner?

Nicole Balvin June 10, 2009 at 12:48 pm

Hi Richard,

Did you know that CERTPOINT Systems also offers an unlimited user pricing model? We have worked with a number of organizations who were in need of this flexibility in relation to pricing. I don’t believe this has ever been translated inside a Brandon Hall report.

Richard Nantel June 12, 2009 at 2:02 pm

Nicole: Yes, we’re aware that some companies, including yours, now provide a flat fee regardless of the number of registered learners. Customers must be thrilled to have so many more pricing options available.

Yannick Warnier July 2, 2009 at 12:19 pm

Hi Richard,

I don’t know what I should do in order to encourage you to do that, but let me tell you I’d be pleased to help you (with necessary information) include Dokeos in the comparison matrix. We have some very corporate features in our recent professional and medical editions, which are not freely available.

Yannick Warnier July 2, 2009 at 12:22 pm

Apparently it’s over for 2009, so let’s say for 2010…

Richard Nantel July 2, 2009 at 12:54 pm

Yannick:

Any LMS provider can participate in our research. Simply complete the application located at the link below and we’ll send you a username and password to access our research questionnaire:

http://www.brandon-hall.com/vendors/

There’s no cost to participate.

Regards,
Richard

Yannick Warnier July 2, 2009 at 2:47 pm

Richard, I have problems with this condition:
“Your company must be the owner of a database-driven LCMS software product that can be used to create and manage training content.”

As you know, open-source software is generally “owned” by a group of people, instead of just a company. This doesn’t prevent the Dokeos company, in Belgium, to own specific packages and provide all the commercial support around it, but it could not be said that the company “owns” the product.

Do you have a solution for that? Solutions like Moodle, Dokeos and Sakai surely have a great role to play in you analysis, but that condition is making it impossible (even for the main company supporting and developing the product, and publicly known to do that).

Suggestions?

Richard Nantel July 2, 2009 at 3:10 pm

Yannick,

Thanks for pointing out the problem with this condition. We’ll reword it to ensure open source providers can be included. I’ve spoken to the folks at Moodle in the past inviting them to be included in our research.

Doug Wallace July 22, 2009 at 10:34 am

Are these annual costs in the averages? I would think SaaS would be significantly less given at the end of the year you have to pay again. Unless you are saying that these Installed numbers are annual as well?

Judy Schott November 24, 2009 at 8:52 am

Are any of these systems considered to be ‘bare-bones’ Learning Management systems?

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