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The Real Cost Savings of a Cloud-Based Learning Management System

by Jodi Harrison on August 10, 2012

Cloud LMSOrganizations today, especially small and medium sized businesses, are tasked with the same training challenges as larger organizations, but with much smaller budgets.

In order to deliver the expected level of training to their workforce, support personnel, sales staff and end-users, companies are forced to stretch their training dollar further and further. But there is a solution to this growing problem – a cloud-based learning management system (LMS).

The advantages of a cloud-based LMS are numerous and include ease of deployment and maintenance, scalability, integration with current systems, flexibility and accessibility. But perhaps the biggest advantage of an outsourced cloud-based learning management system is the cost effectiveness. One of the costliest drains on a training budget is the licensing and maintenance of an on-premise system. This cost is practically eliminated with a cloud-based solution, along with the headaches of hardware failure and other unexpected expenses.

Let’s take a look at 10 of the biggest expenses that are eliminated with a cloud-based LMS:

  1. The cost of hardware such as servers, storage devices and networking equipment, not to mention the power to run and cool them and the space required to house them.
  2. The cost of database administration, OS upgrades, software license fees, etc. These can run nearly 50% of the initial system cost – every year!
  3. Recurring costs for maintenance contracts.
  4. The cost of in-house IT staff or an IT consulting company.
  5. The cost of a database administrator.
  6. The cost of integrating with legacy and home-grown applications.
  7. The cost of customizing, adapting and branding an in-house system.
  8. The cost of testing and piloting all new applications that are brought into the system.
  9. The cost of training the system administrators and keeping their skills current.
  10. The cost of maintaining testing centers and dedicated testing and training devices.

All of these costs and the time associated with them can be virtually eliminated with a cloud-based LMS, without any need to sacrifice security or overall control of the system.

One such LMS to check out is TOPYX® – it was built from the ground up with award-winning social learning tools to enhance the online learning and communication environment.  You can see TOPYX for yourself by requesting a free, personal LMS demo.

The methods currently used for training your employees and end-users are evolving. Companies that are adapting to the changes and implementing cost-saving technology solutions will have a huge advantage over their competitors. What the decision makers in organizations like this need to know is just how easy and effective these new eLearning systems can be.

With a low flat subscription for unlimited users and usage, many companies are seeing the value that TOPYX social LMS can provide to overcome their training challenges, and costs.

Jodi Harrison
Vice President, Business Development
jodi.harrison@interactyx.com

Interactyx Limited
interactyx.com

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