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Cloud Learning Management Systems For the Small Business Market (SAAS, Multitenant, on-demand Learning Management Systems)

Cloud Learning Management Systems For the Small Business Market (SAAS, Multitenant, on-demand Learning Management Systems)


With the growth of SaaS learning Management Systems in the Small to Mid-Size Business Market, we reviewed four LMSs that are on a high growth cycle. Very few consumers know exactly what is cloud computing and more importantly SaaS. Yet there is a great demand for SaaS learning management systems. The current state of the learning Management System market is expanding at an exponential rate. Our data shows this is due to three factors: 1.SaaS 2.Emergence of SMB sector as a strong buyer 3.Resurgence in the commitment of ease of use and graphical user interfaces For most independent software vendors (ISVs), the decision isn’t whether to enter the cloud; it’s how. Business users and consumers alike have shown a strong preference for easy access, low pricing, and simple updates enabled by the Software as a Service (SaaS) model. But whether they have built their software on a cloud platform or are migrating from a traditional licensed model, ISVs have reason to be wary. In the cloud, they are not delivering a product, but a service. Their ability to build and deliver their SaaS applications securely and cost-effectively, while meeting customers’ high expectations for availability, performance, and price, depends largely on the cloud vendor and infrastructure service they choose.


The U.S. business SaaS market is growing quickly at 16.3% CAGR through 2017. SaaS growth outpaces all other business software

WHY IS SAAS GROWTH OCCURRING? The primary reason businesses are choosing SaaS is not because of cost savings, but because they see business growth as more important. “Customers are more interested in using business software applications to grow their business and that’s what they expect your SaaS offers to do for them,” said Stadtmueller. The top IT-related concerns for businesses driving this growth include:

  • Ease of access for remote users
  • Speed to deploy applications or onboard new users
  • Support of LoB decisions regarding software
  • Scalability of applications
  • Decreased time/cost for software management and maintenance

More and more, businesses expect SaaS providers to:

  • Encrypt data stored i the cloud
  • Offer high-availability (uptime) SLAs
  • Provide ease of migration from traditional software apps