Advantages of cloud LMS over on-premise solutions
(or why many companies find it worthwhile to "rent" a system instead of running it on their own server)
Choosing the right LMS (Learning Management System) is not always about features, price or user-friendliness. The fundamental question is also: Do we want an LMS in the cloud, or do we install it on our own infrastructure (so-called on-premise)? In recent years, cloud-based solutions have become increasingly popular, attracting fast deployment, lower internal IT requirements and continuous updates. Why, specifically, are many companies opting for the cloud, what benefits does it bring, and when can an on-premise option pay off? Find out in today's article.
What does cloud vs. on-premise LMS mean
Cloud LMS (SaaS - Software as a Service)
- The LMS vendor manages the servers and provides the system as a subscription (monthly or yearly).
- The company does not need to install or maintain anything on its own servers - an internet connection and a browser are sufficient.
- Updates, backups and security patches are provided by the provider.
On-premise LMS
- The company installs the LMS on its server (own or rented) and manages it completely (installation, upgrade, security, maintenance).
- Higher level of control over data and configuration, but also greater demands on IT capacity and expertise.
- Decision to perform upgrades is up to the operator.
On-premise solution with vendor hosting
- A specific variant where, although it is formally an "on-premise" installation, it physically runs on the vendor's servers (or on their dedicated cloud).
- The company has a similar level of control and customization as with a traditional on-premise (e.g., access to configurations, ability to customize), but does not have to worry about physical hardware.
- The advantage is a combination of greater customization (e.g., specific implementation requirements) and remote management, updates, and backups at the vendor's discretion.
Main benefits of a cloud LMS
- Quick deployment and scalability
With the cloud option, you don't need to buy your own servers or deal with installation. Once you sign a contract with the provider, you can start using the system within hours or days. The cloud solution is also scalable - if the number of users in your company increases from 50 to 5,000, the provider will adjust the infrastructure accordingly and you don't have to worry about expanding servers. - Lower demands on internal IT
Running an on-premise LMS means that someone in the company has to worry about installations, upgrades, backups, security, availability... All of this takes time of internal IT. With the cloud, the vendor takes care of that, while your IT can focus on more important tasks. - Continuous updates and new features
In a cloud (SaaS) model, you automatically deploy new versions and features as the provider develops them. You don't have to wait for large upgrade packages and intricately install them yourself. This keeps your LMS continuously getting more enhancements and fixes. - Liability for security and availability
The cloud provider typically guarantees security, encrypted connections, backups, and functionality. Of course, you need to choose a trusted vendor (does it meet legal requirements, have certifications, etc.), but then you get the assurance that they are actively taking care of continuous uptime and security against attacks. - Predictable cost and lower upfront investment
On-premise operation requires the purchase or expansion of servers, licenses, backup solutions, and an allocation of management time. With the cloud, you typically pay a monthly (or annual) subscription, which means a lower initial outlay and a predictable budget over time. For a company, this often means less CAPEX (capital costs) and more OPEX (operating costs), which is often financially beneficial.
What if I want on-premise, but don't want to deal with my own servers?
Here opens up a third option:
On-premise solution with vendor hosting
Instead of managing the software on your own infrastructure, the vendor can provide you with dedicated hosting or a private cloud where you run an installation designed exclusively for you (with your own URL, configurations, database, etc.).
- Benefit: You have more control (e.g. possibility of more customizations, specific plugins, defining versions, testing environments), but you don't have to deal with hardware and basic IT stuff (physical servers, cooling, basic monitoring). The supplier manages this on its infrastructure, which is often professionally secured.
- Compromise between SaaS and a custom installation: This is often referred to as "hosted on-premise" or "Private Cloud", where in principle you are not in a multitenant SaaS model, but have a dedicated installation with deeper customization. In doing so, the physical operation takes place in the vendor's datacenter.
When an on-premise (or hosted on-premise) solution may make sense
Although the cloud is preferred in many cases, sometimes it is better to stay or move to on-premise:
- Strict security/legislative requirements: Some organizations (e.g., government, banks) have internal rules that do not allow data to be stored in the public cloud.
- Specific customizations: If you know that you will be modifying the LMS extensively (new modules, unique integrations) and that the SaaS vendor will not allow it, on-premise is an option.
- Strong IT background: If you have a robust IT team and your own servers, on-premise may be economically worthwhile - or choose a hosted installation with a vendor where you dictate versions and customizations yourself.
- Private Cloud: If you don't want to share your environment with other clients, you require dedicated servers, a higher level of control, yet professional operation.
It is important to evaluate the real conditions and needs of your company:
- What are your IT capabilities and budgets?
- How important is full control over configuration and data to you?
- Do you need extensive customization or do you want to deploy a finished system quickly?
If you're unsure about these questions, explore our LMS comparison - you'll find which platforms offer a pure cloud model, which also support on-premise installations, and what the practical experience is like. This will make it easier to decide whether SaaS is the obvious choice for you, or whether you'd rather invest in more control and your own (or a dedicated hosted) server.
