Wednesday, January 26, 2005

LMS price benchmarking

This helpful information appeared in a recent Dispatch from Brandon Hall. You can subscribe to their newsletter here.

LMS PRICES: HIGHS, LOWS, AND AVERAGES

"The different in pricing between different learning management systems is staggering. In our most current LMS research, we asked 50 LMS vendors to provide the cumulative cost of a 3-year license, including maintenance and hosting fees (if applicable) for 500; 10,000; 25,000; and 100,000 learners. For a LOCALLY INSTALLED, behind-the-firewall implementation, the vendors reported the following price ranges:

INSTALLED Pricing Ranges

Number of Learners /Low High
500 learners/ $8,980 - $234,150
10,000 learners/ $11,980 - $1,000,000
25,000 learners/ $11,980 - $2,032,500
100,000 learners/ $11,980 - $5,340,000

"To put this in perspective, the cost of the most expensive 100,000 user implementation is almost 450 times more expensive than the lowest-cost implementation. For a three-year HOSTED implementation, the price difference is only slightly smaller, with the highest-priced implementation about 410 times higher than the lowest-priced implementation.

HOSTED Pricing Ranges

Number of Learners/ Low High
500 learners/ $11,800 - $320,000
10,000 learners/ $15,580 - $1,065,000
25,000 learners/ $15,580 - $2,115,000
100,000 learners/ $15,580 - $6,390,000

– Richard Nantel, analyst, brandon-hall.com

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