Difference between Cloud LMS & On-Premise LMS

On-Premise LMS vs Cloud-Based LMS

The importance of LMS Solution is an essential factor for any organization. Any organizations’ training program’s success is based on the availability of resources and information to its users.

Companies must understand the relevance of having an LMS hosted on their own servers or with an external private service provider.

Consequently, we have listed below some factors that state the difference between Cloud LMS & On-Premise LMS Solution.

Both Cloud LMS and On-Premise LMS are equally good concerning their functionality and features. The difference arises according to the specific needs of the organization and how they want to deploy them.

Let us first understand briefly about Cloud LMS and On-Premise LMS.

Cloud LMS

A Cloud-Based LMS is a software solution system that you can access without any hardware or software requirement.

Learners can access the system and avail its features by logging into the provider’s website.

Cloud LMS is an excellent option for organizations that have a limited budget but has a vital LMS requirement for their training.

The features are easily accessible from any device as long as the content is available on the cloud.

On-Premise LMS

An On-premise system is a system you buy along with the complete code and features hosted within your servers.

In this scenario, an organization needs to pay for the system upgrades as and when it is deployed continually.

An On-Premise system offers greater control over the implementation of the processes and allows for more customization of the training program. The security of the system would lie within the organization.

Differences between Cloud LMS and On-Premise LMS


Cloud LMS is a pure Software as a Service (Saas) based system application. Users can activate the LMS via the provider’s website within a few minutes.

On-Premise LMS requires a longer time for the implantation of the system, with significantly higher investment upfront. This happens when the data is being stored on the organization’s property.


Your existing servers’ storage capacity will help you understand which LMS system you would like to opt for. If you have limited space within your servers or expanding the current server base is currently not an alternative, Cloud LMS is the best solution for you to choose.

If you have enough storage capacity and prefer to have your LMS installed alongside your other programs, On-Premise LMS is the solution you should go for.

The implementation of the LMS with your other programs might be a complicated and time-consuming process which could lead delays in implementing the learning program.


Cloud LMS provides a more straightforward approach towards the pricing model. Cloud LMS usually has an annual subscription-based model, where you only pay for the users registered on the LMS platform.  There are no extra or hidden costs involved for maintenance or installation or up-gradation.

On-Premise LMS has a higher setup cost. The total charges of the LMS solutions is not clearly defined. And it also includes several other variable expenses such as;

. Hardware & Infrastructure Costs

. Maintenance Charges

· IT Support Charges

 Product Updates

Cloud LMS provides its users with product updates seamlessly. The features of the LMS and its updates are delivered to their users in real-time, reducing any delays.  On-Premise LMS solutions are less dynamic.

The LMS solutions will be static until new updates are developed and deployed to its users. This can mean that employees may not have access to the latest information right away.


Security is an essential factor in any LMS solution. Depending on the type of information that a company handles, an On-Premise LMS solution is preferable as an organization prefers to have more control over the network and how the information is distributed.

The information can possibly get corrupted, damaged or lost due to server failures. Cloud LMS can provide better data security and high-class servers. This reduces the risk of data loss or any security security breaches.

Final Words

You can now use this comparative analysis to understand the direction you want to take concerning your LMS training program. Visit Kloudlearn to learn more on how to create an effective training solution for your organization. 

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