Cloud-Based LMS: Top 10 benefits to implement it for your team

A Learning Management System (LMS) is a software application. It is specifically designed to deliver and manage corporate training and educational courses. Thanks to technological advancements, various types of LMS platforms have been developed and used worldwide, such as cloud-based LMS (also known as SaaS LMS), open-source LMS, installed LMS (on-premises), and more.

From these options, most organizations pick the right LMS type based on their budget, design, and the size of their L&D team. In an interesting study performed in 2023, about 94% of enterprises use cloud-based LMS with around 67% of enterprise infrastructure being cloud-based. This trend even accelerated in 2020 due to the pandemic. 

But, with the pandemic being long over, why did this trend sustain? The answer lies in its benefits. Most companies are shifting to cloud-based LMS due to their scalability and cost-effectiveness. Cloud-based solutions easily accommodate a growing number of users and provide significant savings by eliminating the need for extensive IT infrastructure and maintenance.

Do you want to know more? Let’s understand what is a cloud-based LMS system and see the top 10 benefits of having it at your workplace. 

What are cloud-based LMS solutions?

A cloud-based LMS is hosted on the Internet. It is accessible through web browsers and allows users to access training materials and courses from anywhere with an internet connection. This flexibility makes cloud-based LMS platforms particularly appealing to organizations with remote or hybrid workforces. Also, these systems are:

• Scalable

• Cost-effective, and

• Often feature automatic updates

Examples of a Cloud-based LMS

Say there is a global marketing firm called "BrightMarketing Inc.". The company has offices in New York, London, and Tokyo, and remote employees scattered around the world. Moving on from an open course LMS, BrightMarketing Inc. decides to implement a cloud-based LMS to streamline its training and development programs. Let’s see how this shift helps the company under different scenarios:

Scenario I: Maria is a remote marketing strategist in Spain. She needs to complete her annual compliance training.

• Solution: With the cloud-based LMS, Maria can log in from her home office using her laptop or even her smartphone. She can access the training materials and complete the course without needing to be physically present in any of the company's offices.

Scenario II: The company plans to expand its workforce by 20% in the next year. They want to hire new employees situated in different regions.

• Solution: The cloud-based LMS can easily accommodate the influx of new users. As the organization grows, the system scales up. It provides access to more employees without requiring additional infrastructure investment.

Scenario III: BrightMarketing Inc. wants to minimize its IT expenses while ensuring robust training for all employees.

• Solution: By using a cloud-based LMS, the company avoids the high upfront costs associated with on-premise systems. Instead, it pays a manageable monthly subscription fee, which covers:

• Maintenance

• Updates, and

• Support.

Top 10 Advantages of a Cloud-based LMS

1. Accessibility and Flexibility

• Anytime, anywhere access

• Users can log into the LMS from any location with an internet connection.

• This makes it convenient for those who travel or work remotely.

• Mobile compatibility

• Cloud-based LMS platforms are designed to work on mobile devices

• This compatibility allows learners to access training materials on smartphones and tablets.

• Flexibility for remote and hybrid work environments

• These systems support various work setups

• They enable employees to learn and complete training whether they are at home, in the office, or on the go.

2. Cost-Effectiveness

• Reduced initial investment compared to on-premise solutions

• Cloud-based LMS platforms require less upfront capital

• That’s because there's no need to invest in physical servers or extensive IT infrastructure.

• Lower maintenance costs

• The service provider handles updates, security, and maintenance

• This reduces the need for in-house IT support and lowers overall operational costs.

• Subscription-based pricing models

• Organizations can choose from various subscription plans

• With cloud-based LMS, they only need to pay for the features and capacity they need.

• This makes budgeting easier and more predictable.

3. Scalability

• Easy to scale up or down based on the organization's needs

• Cloud-based LMS platforms can quickly adjust

• They can easily accommodate more users or new functionalities

• This makes it easy for businesses to grow or reduce their usage as needed

• Supports growing businesses and evolving training requirements

• As organizations expand, a cloud-based LMS can seamlessly add:

• New users

• Courses, and

• Modules

• This ensures training programs evolve alongside the company's needs.

4. Automatic Updates and Maintenance

• Seamless updates without downtime

• Cloud-based LMS platforms update automatically in the background, ensuring that users always have access to the latest version without interruptions.

• Access to the latest features and security patches

• Users benefit from continuous improvements and new features, along with the latest security patches to protect their data.

• Less reliance on in-house IT resources

• The LMS provider handles maintenance and updates, freeing up the organization's IT team to focus on other tasks.

5. Enhanced Security

• Robust data protection measures

• Cloud-based LMS providers implement strong security protocols

• This way they protect user data from 

• Breaches 

and

• Unauthorized access

• Compliance with industry standards and regulations

• These platforms are often compliant with relevant industry standards (like POSH, GDPR, and HIPAA).

• This compliance ensures that user data is managed according to legal requirements.

• Regular backups and disaster recovery options

• Cloud-based LMS systems perform regular data backups

• Often they have disaster recovery plans in place

• This ensures data is safe and can be quickly restored if needed.

6. Improved Collaboration and Communication

• Built-in communication tools (forums, chats, and video conferencing)

• These tools allow learners and instructors to interact in real-time

• They create a more engaging learning experience

• Collaborative learning opportunities

• Cloud-based LMS allows learners to work together and learn from each other

• To serve this purpose, it offers several features:

• Group projects

• Discussion forums

• Peer reviews

• Facilitates teamwork and knowledge sharing

• Cloud-based LMS platforms encourage teamwork

• They provide “spaces” for 

• Collaboration 

and

• Easy sharing of resources and knowledge

7. Comprehensive Analytics and Reporting

• Real-time tracking of learner progress and performance

• Cloud-based LMS platforms provide real-time data on how learners are progressing through courses.

• This data allows instructors to monitor and support students effectively.

• Detailed reports on course effectiveness and engagement

• These systems generate comprehensive reports on various metrics, such as:

• Course completion rates

• Learner engagement

• Learner Performance, and more

• These reports help organizations evaluate and improve their training programs.

8. Customization and Integration

• Tailored learning experiences to meet individual needs

• Cloud-based LMS platforms usually customize learning paths based on individual learner's needs and progress

• This offers a more personalized learning experience.

• Integration with other tools and systems

• Also, these systems can integrate with various other tools, such as:

• HR software

• CRM systems, and

• Productivity tools

• This kind of integration creates a seamless workflow

• Furthermore, it enhances the overall learning experience

9. Enhanced Employee Engagement and Retention

• Interactive and engaging learning content

• Cloud-based LMS platforms support various multimedia content types, like:

• Videos

• Quizzes, and

• Interactive modules

• These elements make learning more engaging and effective.

• Gamification elements to motivate learners

• Using SaaS-based LMS, instructional designers can gamify the learning experience by incorporating features like:

• Badges

• Leaderboards, and

• Rewards

• These features motivate employees to complete courses and achieve better results.

10. Better Compliance and Certification Management

• Simplified compliance tracking and reporting

• Cloud-based LMS platforms streamline the process of tracking compliance training

• This ensures that employees complete mandatory courses on time.

• Automated reminders for certification renewals

• These systems can also send automated reminders to employees about upcoming certification renewals

• This further reduces the risk of non-compliance.

What are some of the best cloud-based LMSs for small businesses?

Most companies, estimated at around 87%, have successfully transitioned to cloud-based LMS platforms. To expand your knowledge, we have compiled a list of the best LMSs for employee training. See your top 8 options below:

Calibr.AI

1. Features: A modern cloud-based AI-enabled LMS. Based on the drag-and-drop builder technology, along with pre-made templates, a rich-text editor, and AI suggestions.

2. Highlights: Provides a comprehensive LXP that supports various content formats, including micro-learning courses, videos, audio, and documents. Also offers robust analytics, reporting features, and seamless learning on any mobile device. 

3. Use Case: Ideal for companies looking to access a wide range of ready-to-use courses to quickly implement training programs without having to develop content from scratch.

Cloud Assess:

• Features: Known for its powerful assessment tools, Cloud Assess offers a user-friendly interface, customizable courses, extensive free course libraries, and continuous feedback.

• Highlights: Highly rated for its customer support and features.

• Use Case: Ideal for businesses needing robust assessment and feedback mechanisms.

Paradiso LMS

• Features: Provides streamlined online learning, 360-degree feedback, ease of use, and strong analytics.

• Highlights: Known for its comprehensive feedback system and user-friendly design.

• Use Case: Suitable for companies looking for an all-in-one training solution with strong analytical capabilities​.

Cornerstone OnDemand

• Features: Highly customizable with content creation, skills management, social learning, robust reporting, and compliance management.

• Highlights: Offers personalized learning paths and detailed analytics.

• Use Case: Great for organizations needing extensive customization and detailed reporting for compliance and skills management​.

Docebo

• Features: User-friendly interface, e-learning capabilities, social learning, gamification, and AI-powered recommendations.

• Highlights: Intuitive content creation tools and multi-language support.

• Use Case: Ideal for companies looking for a versatile LMS with strong e-learning and social learning features​.

e-Khool LMS

• Features: Offers content creation, detailed reporting, and analytics.

• Highlights: Known for its cost-effectiveness and efficiency.

• Use Case: Suitable for businesses wanting a cost-effective solution with comprehensive content creation and reporting tools​.

TalentLMS

• Features: Customizable course creation, assessments, blended learning options, extensive reporting, automation, and third-party integrations.

• Highlights: Offers robust automation and integration capabilities.

• Use Case: Perfect for organizations needing versatile course creation and integration with other business tools.

Absorb LMS

• Features: Content management, certification tracking, mobile learning support, powerful reporting, and automated notifications.

• Highlights: Provides personalized learning experiences based on roles and competencies.

• Use Case: Ideal for companies focusing on detailed employee training and certification tracking.

What are the best LMS options for Retail and Manufacturing Companies?

Choosing the best LMS is challenging, especially if you operate in the ever-dynamic retail and manufacturing sector. Still, based on research, we have shortlisted a few options for you:

Best LMS for Retail

• Kallidus Learn

• Tailored for retail environments

• Kallidus Learn offers an intuitive interface and mobile learning capabilities

• It allows retail employees to access training on the go​.

• Litmos

• Litmos is highly effective in the retail sector due to:

• It is an easy course creation

• Tracking, and

• Reporting functionalities

• Its mobile compatibility ensures that retail staff can train effectively anywhere​.

Best LMS for Manufacturing

• SAP Litmos

• This LMS is specifically designed for the manufacturing industry

• SAP Litmos provides 

• Robust compliance training,

• Performance tracking, and

• Real-time reporting

• It ensures workers are trained to industry standards​

• Cornerstone OnDemand

• This LMS offers detailed analytics and compliance management

• Also, it supports a wide range of content, which makes it suitable for training in the complex manufacturing sector. 

What is the Best LMS for Customer Training?

Customer training is an integral part of every business. No matter whether you operate in the retail, manufacturing, or services industry, efficient customer training is often considered the key to achieving customer satisfaction. Let’s see some top LMSs you can use to train your customers:

• Calibr.AI

• Calibr.ai is a modern AI-powered LMS meant for distributable workforces. It enhances customer training with:

• Intuitive user interfaces

• Fast content creation and management capabilities 

• Interactive learning features

• It creates an engaging learning experience meant to handle diverse customer needs.

• Moodle

• An open-source platform, Moodle is highly customizable and ideal for customer training

• It supports a wide range of plugins and integrations to enhance learning experiences​.

• LearnUpon

• This LMS is focused on customer training and has features like:

• Automated onboarding

• User-friendly course creation, and

• Extensive reporting tools

Conclusion

Owing to rapid technological advancements, several types of LMSs have been developed, such as cloud-based, open-source, installed LMS, and more. Out of these, companies are increasingly shifting to cloud-based LMSs due to their scalability, cost-effectiveness, and enhanced security features.  

These systems are accessible via the Internet and provide unparalleled flexibility. They allow employees to engage in training from anywhere, at any time, and by using various devices. Furthermore, unlike traditional on-premise solutions, cloud-based LMS platforms require minimal upfront investment. Usually, they operate on subscription models and can be easily scaled to accommodate growing numbers of users and evolving training needs. 

Are you looking for a modern, cloud-based LMS tool for your business? Try out Calibr.AI. It is powered by artificial intelligence and can help you author high-quality courses within minutes! Before committing anything, you can start your 30-day free trial. No credit cards are required!

Frequently Asked Questions (FAQs)

1. How does a cloud-based LMS work?

A cloud-based LMS stores training materials online and allows access through web browsers. It lets users learn from anywhere with an internet connection.

2. I have a retail business. Should I go for a cloud-based LMS to train my employees?

Yes, a cloud-based LMS is great for retail businesses, as it offers flexibility, cost-effectiveness, and scalability. It helps train employees efficiently without needing physical infrastructure.

3. How good is Calibr.AI as an LMS?

Calibr.AI provides an AI-powered, comprehensive LXP. It supports various content formats, including micro-learning courses, videos, audio, and documents. It is highly regarded for its user-friendly interface and interactive learning features. Also, Calibr.AI offers robust analytics and reporting features. They allow organizations to measure learners' progress and identify skill gaps. These detailed analytics maximize the return on investment (ROI) for learning and development (L&D) initiatives. 

4. Name some low-cost cloud-based LMS platforms.

Some low-cost cloud-based LMS platforms include Calibr.AI, Moodle, LearnDash, and TalentLMS. These options offer affordable pricing plans for effective employee training.