Fed up of the acronyms? We spell out exactly what SaaS LMS is and why it could be useful to you in your L&D role.

Organisations are increasingly turning to cloud-based solutions to meet their training and development needs.

Designed for flexibility, scalability, and ease of use, SaaS LMS platforms have quickly become a go-to choice for businesses, schools, and training providers around the globe.

The convenience of accessing a cloud-based platform from anywhere, combined with lower maintenance costs and automatic updates, has made SaaS LMS solutions a driving force behind the digital transformation of learning.

Keep reading to learn:

• What SaaS means
• What a SaaS LMS is
• SaaS LMS vs hosted LMS: which is better
• Plus, the best SaaS LMS out there

Let’s get started.

What does SaaS mean?

SaaS (Software as a Service) is a cloud-based software delivery model where applications are hosted by a service provider and made available to users over the internet.

Instead of installing and maintaining software on their own computers or servers, users access the application via a web browser.

SaaS typically operates on a subscription basis, providing scalability, ease of updates, and lower upfront costs.

It eliminates the need for complex hardware and infrastructure, making it an efficient solution for businesses looking to use software without the hassle of installation and management.

An example of a SaaS product would be Google Workspace, Salesforce, and Microsoft 365 etc.

What is a SaaS LMS?

A SaaS LMS (learning management system) is a cloud-based software platform used for delivering, managing, and tracking educational or training content, hosted and maintained by a third-party provider.

Instead of installing the LMS on local servers, users can access the system through a web browser from anywhere with an internet connection.

What is a hosted LMS?

A hosted LMS (learning management system) refers to an LMS platform that is installed and maintained on a third-party server rather than being managed on the organisation’s own infrastructure.

In this model, the hosting provider is responsible for server maintenance, software updates, backups, and security, while the organisation focuses on using the LMS for delivering training or educational content.

What are the benefits of a SaaS LMS?

A SaaS LMS provides several benefits, making it a popular choice for organisations looking to implement an online learning solution.

Here are the key advantages:

Cost-effective

There are no upfront infrastructure costs. That means no need to invest in hardware or servers, reducing capital expenses.

Plus, you’ll be on subscription-based pricing. Pay-as-you-go models allows you to pay only for what you use, with predictable monthly or annual fees.

💡 Related: How to save time and money with an LMS

Easy implementation and setup

There’s minimal installation required with a SaaS LMS. After all, users access the LMS directly through a web browser, eliminating lengthy installation processes.

And that means a faster time to launch. With a SaaS LMS you can deploy the platform quickly and start using it immediately.

Automatic updates and maintenance

Say hello to hands-off maintenance.

Your LMS provider handles all updates, patches, and bug fixes, ensuring the platform remains secure and up-to-date.

Regular updates also means users always have access to the latest features without manual intervention.

Scalability

You can easily scale up or down based on the number of users or courses, which makes it suitable for organisations of any size.

Plus, as your needs change, your LMS can reflect that. So, if you grow and require increased usage, you won’t need significant upgrades to achieve that.

Accessibility and mobility

Cloud-based access through a SaaS LMS means your users can access the LMS from any device with internet connectivity, enabling remote learning and mobile-friendly experiences.

Plus, you can enjoy global reach which makes it ideal for organisations with distributed teams or learners in different locations, as the system can be accessed globally.

Integration capabilities

SaaS LMS platforms often offer APIs and built-in integrations with other software like HR systems, CRM, video conferencing tools, and content management systems.

Integrations help streamline workflows, such as auto-enrolment of employees based on HR data.

Reduced IT burden

Since the provider handles hosting, updates, and maintenance, the internal IT team can focus on other priorities.

Plus cloud-based management tools simplify administrative tasks like user management and content updates.

SaaS vs hosted LMS: which is better?

Choosing between a SaaS LMS and a hosted LMS depends on the specific needs, resources, and goals of your organisation.

Here’s a comparison to help you determine which option might be better for you:

Criteria	SaaS LMS	Hosted LMS
Setup and Implementation	Quick setup, minimal installation required. Users access it via a web browser.	More complex setup, may require installation, configuration, and server management.
Maintenance and Updates	Managed by the SaaS provider; updates and patches are automatic.	Organisation or hosting provider must handle updates, maintenance, and security.
Customisation	Limited customisation, depending on the SaaS provider’s offerings.	More flexibility for deep customisation, especially if self-hosted.
Cost	Subscription-based pricing, often with a predictable monthly/annual fee. No hardware costs.	Higher initial setup costs, potential ongoing server and maintenance costs. May require dedicated IT staff.
Scalability	Easily scalable, can handle fluctuating user numbers without additional infrastructure.	Scalability may require additional server capacity and IT resources.
Security and Compliance	Managed by the provider, often with industry-standard security measures and compliance certifications (e.g., GDPR, HIPAA).	Security and compliance are the organisation’s responsibility, which can be more challenging to manage effectively.
Accessibility and Mobility	Cloud-based, accessible from any device with internet access, supporting remote learning.	Can be cloud-based if hosted externally, but accessibility may depend on server setup and network configurations.
Integration	Typically offers seamless integrations with third-party software via APIs and plugins.	Can be integrated with other systems but may require custom development and configuration.
IT Resource Requirements	Minimal IT involvement needed; the provider manages infrastructure and support.	Requires more in-house or outsourced IT resources for setup, maintenance, and troubleshooting.
Control and Ownership	Less control over the software environment; dependent on the SaaS provider’s features and updates.	Full control over the LMS, including the ability to modify the source code (if open-source) and customise the environment.

When to choose a SaaS LMS

Not sure if a SaaS LMS is for you based on the table above?

Here are a few quick fire reasons why you might be better opting for a SaaS LMS.

• Speed and simplicity: If you need to launch quickly and want a hassle-free, ready-to-use solution.
• Limited IT resources: Ideal for organisations without a dedicated IT team, as the provider handles all technical aspects.
• Remote and mobile accessibility: Great for organisations with a distributed workforce or learners who need mobile access.
• Security and compliance needs: If you want the reassurance of provider-managed security and compliance.

When to choose a hosted LMS

Not sold on a SaaS LMS?

Here are a few reasons when a hosted LMS might be the better choice for your business.

• Control over data: If you need complete control over your data and prefer not to rely on a third-party provider for hosting.
• In-house IT expertise: Suitable for organisations with strong IT resources that can manage servers, updates, and security.
• Open-source preference: If you want the flexibility of using an open-source LMS (like Moodle) that can be fully customised and controlled.

Best SaaS LMS to try

BuildEmpire is a platinum partner of SaaS LMS Totara, one of the best learning platforms out there.

What’s even better is that you can choose to host the LMS yourself, or we can host it for you which gives you even more control over your data.

With BuildEmpire, you can get all the benefits of a truly user-centric LMS.

As well as compliance tracking and performance management, you can also access clean designs, gamification, eCommerce and much more as part of the BuildEmpire Edition.

Never heard of it?

Well, put simply, it’s our version of Totara.

Totara has all the core learning building blocks you need to build a really good LMS.

But with BuildEmpire, you can create the perfect learning environment. Use our pre-built features and plugins, or work with us to create something completely new.

Sound good? Book a demo with our team to see the Edition in all its glory.