{"id":42368,"date":"2022-02-23T15:44:23","date_gmt":"2022-02-23T15:44:23","guid":{"rendered":"https:\/\/www.proprofs.com\/c\/?p=42368"},"modified":"2025-07-02T09:20:57","modified_gmt":"2025-07-02T09:20:57","slug":"hosted-lms-vs-saas-lms","status":"publish","type":"post","link":"https:\/\/www.proprofstraining.com\/blog\/hosted-lms-vs-saas-lms\/","title":{"rendered":"Hosted LMS vs. SaaS LMS: Which One Is Best for You"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Do you ever wonder what a hosted LMS and a <\/span><span style=\"font-weight: 400;\">SaaS LMS<\/span><span style=\"font-weight: 400;\"> are and how they compare against each other? More importantly, which one is more popular and why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These are some of the questions we answer in this blog post. They will help you, especially if you\u2019re out in the market looking for a learning management system for the first time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Talking of <a href=\"https:\/\/www.proprofstraining.com\/blog\/what-is-an-lms\/\">LMS<\/a>, the global LMS market is expected to grow to <\/span><a href=\"https:\/\/financesonline.com\/25-essential-learning-management-system-e-learning-statistics-analysis-of-trends-data-and-market-share\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">$38.10 billion<\/span><\/a><span style=\"font-weight: 400;\"> by 2027 from $8.76 billion in 2019.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In places like North America and Europe, the rate of LMS adoption is <\/span><a href=\"https:\/\/research.com\/education\/lms-statistics\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">growing rapidly<\/span><\/a><span style=\"font-weight: 400;\"> as there\u2019s a realization of the importance of enhancing the overall online learning experience.<\/span><\/p>\n<p>For the purpose of this post, let\u2019s focus on hosted LMS and <a href=\"https:\/\/www.proprofstraining.com\/blog\/saas-lms\/\">SaaS LMS<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_SaaS_LMS\"><\/span><strong>What is a SaaS LMS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-42373\" src=\"https:\/\/www.proprofs.com\/c\/wp-content\/uploads\/2022\/02\/ProProfs-LMS-1.png\" alt=\"ProProfs LMS\" width=\"512\" height=\"275\" \/><\/p>\n<p><span style=\"font-weight: 400;\">A <\/span><span style=\"font-weight: 400;\">SaaS LMS<\/span><span style=\"font-weight: 400;\"> is a type of LMS based on the model of <\/span><b>software as a service<\/b><span style=\"font-weight: 400;\">. Generally, the term is used synonymously to understand <\/span><b>cloud-based LMS solutions<\/b><span style=\"font-weight: 400;\">. They are hosted on the internet and available on-demand. In other words, you get these LMS systems as a service from a remote server of a software provider that hosts these platforms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since a SaaS LMS is made available over the web, there\u2019s <\/span><b>no need to install hardware or software locally <\/b><span style=\"font-weight: 400;\">in an in-house server or computer. You just need to create a user account and sign in to the LMS to start using it. Users pay their subscriptions to these tools and associated services monthly or annually.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Examples_of_SaaS_LMS\"><\/span><strong>Examples of SaaS LMS<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you\u2019re interested in SaaS LMS, here are some of the top SaaS learning management systems worth knowing. They are widely used by training centers, enterprises, teachers, tutors, and educational institutions.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.proprofstraining.com\/\"><span style=\"font-weight: 400;\">ProProfs Training Maker<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.docebo.com\/products\/learn-lms\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Docebo<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.absorblms.com\/products\/learning-management-system\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Absorb LMS<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.learnupon.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">LearnUpon<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.braincert.com\/learning-management-system\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">BrainCert<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.looop.co\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Looop<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.litmos.com\/learning-management-system\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">SAP Litmos<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.adobe.com\/in\/products\/captivateprime.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Adobe Captivate Prime<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.ispringsolutions.com\/ispring-learn\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">iSpring Learn<\/span><\/a><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_Use_SaaS_LMS\"><\/span><strong>Why Use SaaS LMS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are many sound reasons to go for a SaaS LMS regardless of your industry and learning needs. Some of the eye-catching ones are as follows:<\/span><\/p>\n<ul>\n<li>\n<h3><b>Faster Implementation<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">One of the best parts of a SaaS LMS is that it enables faster software deployment. <\/span><span style=\"font-weight: 400;\">The cloud infrastructure is already there, fully set up and ready to use. All you need to do is log into the LMS. This way, you can ensure that your online training is there in front of your audience in minutes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.proprofstraining.com\/features\/ai-lms\/\">AI-Powered LMS<\/a> platforms like ProProfs are taking this further by offering ProProfs AI, with which<\/span><span style=\"font-weight: 400;\">\u00a0you can automatically create courses from just a topic\/prompt in minutes rather than hours or even days.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Ease of Updates<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You don\u2019t need to worry about frequent software updates and upgrades with a SaaS LMS. The provider takes care of all of that through an <\/span><b>automatic process<\/b><span style=\"font-weight: 400;\">. You don\u2019t have to remember pending updates, bug fixes, regular maintenance, and upgrades to a higher version of the software.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Cost-Saving<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You incur a <\/span><b>lesser total cost of ownership <\/b><span style=\"font-weight: 400;\">when you deploy a SaaS LMS. There\u2019s no need to maintain an in-house IT infrastructure and hire a team of professionals to manage it. Since these software solutions are based on a <\/span><a href=\"https:\/\/www.proprofstraining.com\/pricing\/\"><span style=\"font-weight: 400;\">pricing plan<\/span><\/a><span style=\"font-weight: 400;\">, you know how much you need to pay each month or year. <\/span><b>The cost becomes predictable<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Scalability<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There is <\/span><b>no limit on the number of learners or the number of courses <\/b><span style=\"font-weight: 400;\">you can upload to a SaaS LMS. These LMS expand as your business grows and the ensuing need for more training. So, there\u2019s no concern about class size or the amount of training materials you can use.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li>\n<h3><b>Flexibility<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A SaaS LMS is <\/span><b>accessible from any electronic device<\/b><span style=\"font-weight: 400;\">, including smartphones, PCs, laptops, and tablets, <\/span><b>anytime, anywhere<\/b><span style=\"font-weight: 400;\">. All you need is a stable internet connection. It doesn\u2019t matter whether your learners are local or remote. This offers unmatched convenience to both instructors and learners.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-42384\" src=\"https:\/\/www.proprofs.com\/c\/wp-content\/uploads\/2022\/02\/Cloud-Computing.png\" alt=\"Cloud Computing\" width=\"512\" height=\"444\" \/><\/p>\n<ul>\n<li>\n<h3><b>Easy Software Integrations<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Another reason to consider using SaaS LMS tools is that most of them support <\/span><a href=\"https:\/\/www.proprofstraining.com\/integrations\/\"><b>seamless integrations<\/b><\/a><b> with several useful applications<\/b><span style=\"font-weight: 400;\">, such as CRMs, email marketing tools, and communication tools. They communicate with a host of other systems using APIs and present a combined system to enhance the power of the individual tools.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-42385\" src=\"https:\/\/www.proprofs.com\/c\/wp-content\/uploads\/2022\/02\/Easy-Software-Integrations.png\" alt=\"Easy Software Integrations\" width=\"512\" height=\"479\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Hosted_LMS\"><\/span><strong>What is a Hosted LMS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A <a href=\"https:\/\/www.proprofstraining.com\/blog\/lms-hosting-services-and-strategies\/\">hosted LMS<\/a>, or more aptly a <\/span><b>self-hosting LMS<\/b><span style=\"font-weight: 400;\">, is <\/span><b>installed and run on an in-house server<\/b><span style=\"font-weight: 400;\">. Here, you host your own LMS on-premise instead of taking the service of a remote cloud server. Usually, companies that rely on this type of LMS have the workforce to manage it internally.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is a more traditional form of a software use case that companies have been using well before the arrival of cloud computing. They would install software on their desktops and conduct training sessions from it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Users only need to purchase the software from a vendor. After that, it becomes their responsibility to run, manage, troubleshoot, and upgrade the software.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Examples_of_Hosted_LMS\"><\/span><b>Examples of Hosted LMS<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you think LMS hosting is for you, you may want to look at these top examples of hosted LMS. They can make it easier for you to choose the best ones out there.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/moodle.org\/#slide1\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Moodle<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.learndash.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">LearnDash<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.sakailms.org\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Sakai<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/openedx.org\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Open edX<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.opigno.org\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Opigno<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/chamilo.org\/en\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Chamilo<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.formalms.org\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Forma LMS<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/atutor.github.io\/atutor\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">ATutor<\/span><\/a><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_Use_Hosted_LMS\"><\/span><strong>Why Use Hosted LMS?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Like a SaaS LMS, a hosted LMS has a few significant advantages. If you plan to go for this type of LMS, you\u2019ll find these favorable attributes convincing enough for you to take the plunge.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Complete Control<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">With a self-hosted learning management system, you can finally <\/span><b>keep all your software-related matters to yourself<\/b><span style=\"font-weight: 400;\">. That\u2019s because these LMS are locally hosted, and <\/span><b>you get to decide how you run them, how you maintain them<\/b><span style=\"font-weight: 400;\">, and so on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In short, you\u2019ve <\/span><b>complete control <\/b><span style=\"font-weight: 400;\">over them as your in-house IT staff is in charge of everything. You are not at the mercy of some third party.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Greater Customization<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-42387\" src=\"https:\/\/www.proprofs.com\/c\/wp-content\/uploads\/2022\/02\/Customization.png\" alt=\"Customization\" width=\"512\" height=\"251\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Equally significant is the extent to which you can customize the software at your end. Since you\u2019re managing it from scratch, you get greater <\/span><b>freedom to mold it precisely the way you want<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">SaaS LMS systems also offer customization, but it\u2019s limited. You can personalize and customize a hosted LMS initially, be it the user dashboard, content, or <\/span><a href=\"https:\/\/help.proprofstraining.com\/create-new-themes\"><span style=\"font-weight: 400;\">branding exercises<\/span><\/a><span style=\"font-weight: 400;\">, and offer consistent online training.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Cost-Effective<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A locally installed LMS may entail a bit higher upfront cost, but that\u2019s it about such LMS. <\/span><b>The continuing expenses of a self-hosted LMS are comparatively lower <\/b><span style=\"font-weight: 400;\">than that of a SaaS LMS.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A hosted LMS requires <\/span><b>just a one-time licensing fee<\/b><span style=\"font-weight: 400;\"> and once installed, you don\u2019t have to shell out anything other than some costs for add-ons and maintenance.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Extra Layer of Security<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">No doubt, all LMS tools come with some level of security. But the self-hosting versions enable you to go the extra mile. You can <\/span><b>add as many layers of security as you think necessary<\/b><span style=\"font-weight: 400;\">, such as content and data security, limiting access to certain parts of the software, and advanced encryption.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_SaaS_LMS_a_Better_Solution\"><\/span><strong>Why is SaaS LMS a Better Solution?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Initially, the question of SaaS vs. hosted LMS may seem like an endless puzzle. But after weighing all the pros of both categories of LMS, we\u2019ve arrived at the verdict that SaaS LMS have the upper hand.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s why:<\/span><\/p>\n<ul>\n<li>\n<h3><b>Better speed<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">SaaS LMS tools ensure <\/span><b>faster deployment and a high degree of accessibility<\/b><span style=\"font-weight: 400;\">, saving companies\u2019 time and offering a delightful eLearning experience.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Ease of use<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Most <a href=\"https:\/\/www.proprofstraining.com\/blog\/cloud-based-lms\/\">cloud LMS systems<\/a> are <\/span><b>easy to use <\/b><span style=\"font-weight: 400;\">as they are designed for users who need to get them up and running in record time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Generally, the vendor hosting the SaaS would do the heavy lifting in terms of complicated setup and maintenance, clearing the way for you just to log in and run the systems right away.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Useful mix of features<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These saas e-learning tools support must-have features such as <\/span><b>mobile learning, social learning, gamification, and blended learning<\/b><span style=\"font-weight: 400;\">. They, thus, offer a comprehensive learning ecosystem.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Better reporting functionality<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Similarly, they come with <\/span><b>built-in <\/b><a href=\"https:\/\/www.proprofstraining.com\/blog\/lms-reporting\/\"><b>LMS reporting and analytics<\/b><\/a> <span style=\"font-weight: 400;\">features that make tracking, monitoring, and data-driven decision-making easy.<\/span><\/p>\n<p><strong>Watch: How to Analyze Training Course Results<\/strong><br \/>\n<iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/1xNt0EcnD4Q\" width=\"800\" height=\"400\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<ul>\n<li>\n<h3><b>Security<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Users\u2019 <\/span><b>data is stored securely in the cloud, <\/b><span style=\"font-weight: 400;\">and they don\u2019t need to create any backup for it.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Cost savings<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">SaaS LMS solutions can <\/span><b>significantly save your software costs <\/b><span style=\"font-weight: 400;\">since an external service provider hosts and maintains them on your behalf.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Generally, the base price is minimal, and there are no charges for installation, troubleshooting, and fixes. You just pay a predetermined monthly or annual subscription.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Adaptable<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">SaaS LMS can <\/span><b>future-proof your business<\/b><span style=\"font-weight: 400;\">. They are designed keeping the need for flexibility, scalability, and seamless integrations in mind. They enable businesses to adapt and grow in a highly competitive online learning environment and maximize revenue generation in the process.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Choose_Your_LMS_Wisely\"><\/span><strong>Choose Your LMS Wisely<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Choosing the <a href=\"https:\/\/www.proprofstraining.com\/lms-software\/\">best LMS<\/a> based on the hosting type is purely a question of one\u2019s choice. Both have their advantages. The decision should be subjective and based on what you think works for you and your stakeholders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The above observation on why SaaS LMS are a better option is based on the general opinions in the industry and our objective analysis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Carefully study the upsides and downsides of Hosting vs. SaaS and take a prudent decision. Whichever LMS type you finally choose, it should suit your budget and serve your purpose. More importantly, it should make you happy.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you ever wonder what a hosted LMS and a SaaS LMS are and how they compare against each other? More importantly, which one is more popular and why? These are some of the questions we answer in this blog post. They will help you, especially if you\u2019re out in the market looking for a&#8230;<\/p>\n","protected":false},"author":3,"featured_media":44612,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-42368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lms"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hosted LMS vs. SaaS LMS: Which One is Best for You<\/title>\n<meta name=\"description\" content=\"Unsure between a SaaS LMS or hosted LMS? 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