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Top 10 benefits of a self-hosted LMS

Top 10 benefits of a self-hosted LMS

Today, organizations all over the world are looking for a robust platform for training and learning. The pandemic has given a huge fillip to the eLearning market. Be it the banking industry or the healthcare industry, all are hunting for the best LMS to foster growth and learning simultaneously. 

There is a growing demand for LMS in the market. Organizations are leaving no chance to invest their money in it, as they know that virtual training is the future of eLearning. 

An LMS is a one-stop solution for training. From the creation of eLearning material to its distribution, editing, tracking performance, and certification, all have become an easy process. It also supports hybrid training models like blended learning and flipped classroom approach. 

However, selecting the right learning management system (LMS) from a pool of LMSs is a herculean task. And then deciding on LMS that you’d want to deploy (self-hosted or cloud-based) is a daunting task as well. When you start hunting for LMS, a lot of doubts might pop up in your mind. Is this LMS worth investing in? Is the price reasonable? Can I customize it? Does it have security-related issues? Is it good for the long term?

In this article, we will take you a little closer to a self-hosted LMS i.e., what is it after all? And what benefits does it offer to you?

What is a self-hosted LMS?

A self-hosted LMS is also called a self-deployed, in-house, and installed LMS. In a self-hosted LMS, the vendor simply offers you the LMS that you host as your own LMS on your server. All you have to do is purchase, install and use it on-premise. You are the owner and the controller of such an LMS.

Let’s now try to understand the benefits of a self-hosted LMS.

1: Customize eLearning platform as per your needs

Self-hosted LMS usually offer more customization features. For example, you can customize a variety of aspects like

  • Customize user dashboard- The online learners can be given the freedom to upload their profile picture and add an introduction on the personal dashboard.
  • Color palette- Using blue or green colors can make your eLearning platform look visually appealing. You can also add colors that are aligned with your company’s logo.
  • Integrate your branding logo- By adding this feature, online learners will see you as a more credible source for eLearning. 


2: Implement data security measures

Almost all LMS solutions provide some level of data security to their users. They follow certain protocols that ensure that data is protected in every possible way. However, a self-hosted online training platform allows you to apply an extra layer of security. For instance,

  • You can limit user access to certain specific sections of the platform. 
  • Add a more advanced encryption system to keep hacking at bay.

3: Lower cost

Many self-hosted LMS users often complain that the upfront cost of this kind of LMS is very high. However, this is a huge misconception that people have in their heads. In a self-hosted LMS, you just make a one-time payment and get a lifetime and unlimited access. 

On the other hand, with a cloud-based LMS, you typically pay as you go. This means you have to pay monthly or yearly subscription fees.

4: Scalability

Scalability is the most significant benefit of a self-hosted LMS. It enables unlimited growth throughout life. Even if you add 10x users overnight, it will seamlessly scale with you. This won’t require much intervention from your side. 

There are no limits on the number of online training courses or training materials you want to upload. You can bring as many online instructors as you want. Hence, as you grow, your self-hosted LMS grows too. To make your eLearning platform more scalable, a mobile learning feature can be added so that training becomes easier.

5: Provide various integrations

Software and applications that merge or integrate with your existing LMS help you enhance performance and create a collaborative system that can make your work more efficient and effective. 

The following integrations can be extended to your LMS:

  • CMS

Content Management System or CMS helps you create, manage, and organize eLearning content. This single tool can help you design interactive courses with outstanding features. CMS is a good LMS integration by which you can store all the eLearning material in the online digital library.

  • CRM

Customer relationship management or CRM integration is highly in demand right now. CRM software can help you to collect information on customer interactions, choices, purchase records, behavior, how long the customers have been availing of your services, and so on. The major advantages of collecting such information include better customer retention, increased sales, getting prospective leads, and detailed analytics on customer behavior.


  • HRMS

A human resource management system or HRMS is software that is used for managing the internal HR functions of an organization. For instance, it allows you to manage employee personal data, payroll, screening and shortlisting resumes, onboarding of employees, online training, talent management, employee engagement, and employee attendance. Self-hosted LMS allows you to integrate your existing LMS with the HRMS, which will help in reducing data redundancy, easy migration, the interaction between two systems, and allow easy onboarding and retention of employees.

  • VR

Virtual reality or VR integration allows users to get an amazing immersive experience by wearing a VR headset. The virtual object seems to be real, and you can feel, sense, and touch them. It is an effective way to measure employees’ performance and capabilities. For instance, employees can learn skills through traditional online classes and then practice what they have learned in VR training scenarios and online simulations.

6: Increased storage capacity

Using a self-hosted LMS, you have the freedom to decide whether to raise the server storage capacity depending on your online learners’ base. You also have the option to choose the server location. On the other hand, other hosting options do not provide this kind of flexibility in server capacity. Their services and storage capacity depending on the subscription plan you’ve purchased. Other than this, you can implement a III-tier backup architecture and Disaster Recovery Policy also using a self-hosted LMS.

7: Easier to price eLearning courses

Using a self-hosted LMS, you incur a one-time cost. Once you make payments initially, you can easily plan the ahead journey. You don’t have to worry about frequent subscription payments and requesting upgrades to the LMS vendors.

With a self-hosted training platform, it’s much easier to calculate an accurate online training budget. For example, you’re able to price courses and decide on discounts.

8: Tailor-made eLearning courses

Using a self-hosted LMS, you can create an eLearning course featuring your logo. This adds branding value to your eLearning courses. You can also add or remove eLearning modules based on your preferences.

9: Independence from the vendors

Sometimes the LMS vendor may go bankrupt and ultimately make you suffer, especially when you are using a cloud-based platform. However, if you use a self-hosted LMS, you can work independently. You have the liberty to give customers perpetual licenses for free, making the system open source or distributing the self-hosted version of the LMS as open source.

10: Full control over the system

If you choose a self-hosted LMS, your team gains complete control over the learning management system and can personalize it in whichever way they want. If there is any technical fault, they don’t have to wait for the LMS vendor to fix it. They can call IT specialists to solve the problem. Your online training team has complete control over the design and architecture of the eLearning course.


If you are a large organization, have immense security concerns, and wish to build unique eLearning courses, you can surely go with self-hosted LMS. It allows you to play solo without getting dependent on an LMS vendor for smaller changes. It might seem to be costly in the beginning, but it is worth investing in as it offers amazing benefits to you.

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