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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Richard
This is interesting data, but the min/max prices are clearly not a like for like comparison. It would be more helpful if these were either segmented by capability level (e.g. low-end, mid-tier, Enterprise), or shown as a bell-curve to see the core price ranges.
I also assume this is list price, which is almost never charged – especially for the larger implementations or products.
regards, DAVID
David,
I’ll post this information in a bell curve in the days ahead.
About capability level versus pricing, this is a tougher problem. With automobiles, there isn’t always a huge difference between a $15,000 model and a $50,000 model. The same is at times true with enterprise software.
About the prices being list price, yes, again as with cars, this is the price listed before negotiations.
There are great open source LMSs like Moodle out there. http://www.moodle.org An exceptional product and I have used quite a few. No need to get saddled with this expense.
Richard,
I really like this break out of high and low watermarks. I would also be interested in seeing what kind of support and service come with each level of investment as to Deb’s Point on 6/4/2009- often open source=no support and no way to migrate to new released versions and upgardes, leaving you essentially locked into the “free” app you selected.
Hi Richard,
Excelsoft Technologies develops SARAS Learning Management System, which we have deployed in corporate as well as academic sectors worldwide. Please let me if we can participate in your survey of LMS vendors.
Regards, Harish
Harish,
Any LMS provider can participate in our research. Simply complete the application located at the link below and we’ll send you a username and password to access our research questionnaire:
http://www.brandon-hall.com/vendors/
There’s no cost to participate.
Regards,
Richard
The prices quotes regarding implementation of an LMS, are these in US$ or CND$?
Madeleine, all prices are in U.S. dollars.
I was amazed and pleased to find your report. I have worked with dozens of systems over the years and found that many of these are complicated and proprietary. Coincidentally I discovered that the low end you show is identical to the Joomla LMS. The Joomla open source community has changed the way we build for the web. It is supported by some of the best minds in the international cyber community which keeps innovation up and costs down. So far I am very impressed with the product as a total LCMS.