A robust Learning Management System (LMS) is essential for organizations of all sizes that want to create a sustainable and impactful learning environment.
With most companies relying on an LMS as a fundamental part of their training programs, the real challenge is finding one that aligns perfectly with your unique goals.
The market is saturated with options, which can make the selection process feel overwhelming. To help you navigate this, here are 9 key factors to consider when choosing the ideal cloud LMS for your organization.
9 Key Steps for Choosing the Best Cloud LMS
Choosing the right cloud LMS can greatly influence your organization’s training and development success. Follow these key steps to ensure you make the best choice for your specific needs.
1. Identify Your Needs and Goals
To choose the best cloud LMS for you organization , the first step is to figure out what you need and what your goals are. If you’re not clear about these, begin by asking yourself some important questions:
What Essential Features Do My Learners Require?
The features are the most important criterion in your decision-making process. If a platform doesn’t meet your requirements, remove it from your list of options!
Before you start looking at different LMS options, you need to understand what the users hope to achieve by the end of their learning session, as that will be your main goal. Some basic features of a LMS software:

Suggested Read : Key AI-Driven LMS Features for Your Learning Platform in 2024
Does the LMS Offer Customizable Features?
When looking for a learning management system (LMS), make sure it has the following custom features: a custom grading system, alerts for notifications, note-taking options, and access to online libraries. It should also let you create and develop courses.
Other useful features to consider are live chat, an announcement board, a calendar for important events, tests and quizzes, file sharing, and progress tracking.
What Are My Organization’s Specific Training Needs?
Identify what type of training your organization requires. Are you providing onboarding for new hires, skills development, compliance training, or leadership programs? Defining these needs will guide you in choosing an LMS that supports these objectives.
For example, if your focus is on continuous professional development, the LMS should include features like progress tracking, certification, and a rich library of resources.
What Are the Goals of Our Training Programs?
Understand the desired outcomes of your training programs. Are you aiming to improve employee productivity, ensure regulatory compliance, or reduce onboarding time?
Setting clear and measurable goals, like reducing the time it takes to complete training or improving test scores, will help you choose an LMS that aligns with these objectives and provides the right tools for tracking progress and success.
How Do This LMS Aligns With Our Broader Business Goals?
Your Learning Management System (LMS) should do more than just provide training. It should also help you meet your overall business goals. This includes improving employee performance, increasing the number of employees who stay with the company, and growing your organization.
Think about how the LMS works with other systems in your business, like human resources or performance management tools.
Is the LMS Mobile-ready to Support on-the-go Learning?
Studies show that smartphone users can access and finish training information 45% faster than people using a PC. Additionally, 76% of online students use their personal devices to access course information and training materials.
When choosing a Learning Management System (LMS), think about how it will work with the technology and apps you already have. Remember, if your educational system is only available on a desktop or laptop, you might miss out on some potential students.
2. Comparing Different LMS Types
There are different types of LMS available. Before deciding which LMS to choose, you should book a demo of each type to compare them. This comparison will help you make an informed decision and choose the best fit for your needs.
There are mainly three types of LMS available:
AI-Powered LMS:
AI-powered Learning Management Systems (LMS) are popular because they are easy to set up and can grow with your needs. These systems are hosted on external servers, this cloud-based system makes them cost-effective since you don’t need a lot of physical infrastructure. They also come with automatic updates and backups to keep everything secure and running smoothly. Some key benefits include:
- Better search features, as AI helps improve search results over time.
- More engagement from learners by making it easier to find content.
- Time and money savings for companies by simplifying administrative tasks and spotting new opportunities.
Proprietary LMS:
Open-source Learning Management System (LMS) solutions provide great flexibility and control, which means they can be customized to meet specific needs. Many organizations with their own development teams prefer these systems because there are many community-created plugins and extensions available.
However, using an open-source LMS comes with a lot of responsibility. Organizations need to put time and money into continuous maintenance, development, and support. Even though the software is often free, the total cost can end up being higher because of these extra expenses.
Open-source LMS:
Proprietary LMS solutions are software programs offered by companies that come with specific features already built in. These programs are known for being easy to use, having good customer support, and being reliable.
They are a good fit for smaller organizations that don’t have a lot of IT resources or need for customization. However, these solutions limit how much you can change them, which might mean you have to adjust your own processes to match their features.
The licensing fees can be expensive, especially for organizations with many users, and switching to a different LMS can be difficult and costly.
Think about your specific needs and goals in order to choose the best type of LMS for your organization.
3. Understand Your Audience
Knowing your audience is key for successful training. Learners usually fit into four categories: auditory (those who learn best by hearing), visual (those who learn best by seeing), reading/writing (those who learn best through reading and writing), and kinesthetic (those who learn by doing).
Picking a Learning Management System (LMS) that aligns with these learning styles can make learning more effective.
Here are some styles to consider to implement in your LMS:
- Asynchronous Learning: This approach allows learners to study at their own pace and on their own schedule, which is great for people with busy lives.
- Blended Learning: This method mixes traditional classroom teaching with online resources, combining in-person and digital learning to cater to different preferences.
- Microlearning: This involves breaking down complex subjects into small, focused lessons, making it ideal for quick learning and those with tight schedules.
4. Consider Your Organization’s Size and Scalability Needs
We strongly believe that a Learning Management System (LMS) is not a one-size-fits-all solution. The size of your organization and your plans for future growth are important factors in choosing the right LMS. To make the most of eLearning, you need a training platform designed for your specific needs.
If you expect to grow quickly or have a large team spread out in different locations, it’s necessary to prioritize scalability. Also, think about how long it will take to set up the new LMS and what resources you’ll need.
For example, does the LMS have features that let you automatically import users or transfer past data from your current system? These features can save you a lot of time and effort.
5. Pricing Models and Budget Considerations
Once you’ve defined your learning goals and necessary features, the next step is evaluating pricing models and their fit within your budget. Here are three common LMS pricing models to consider:
- Subscription-Based Pricing
- Pros: Predictable costs, regular updates, scalability.
- Cons: Long-term costs can add up, and vendor lock-in may pose challenges.
- Pay-Per-User Pricing
- Pros: Pay for actual usage, easily scalable.
- Cons: Unpredictable monthly costs and potential overage fees.
- One-Time Purchase Pricing
- Pros: No ongoing payments, full control, potential long-term savings.
- Cons: Large upfront costs, added responsibility for maintenance and scalability.
When evaluating, consider the Total Cost of Ownership (TCO), scalability, budget flexibility, and the potential ROI. Your final choice should align with your organization’s needs, long-term goals, and financial capacity.
6. Evaluate Vendors
This step is about looking at different companies to find a Learning Management System (LMS) that fits your needs the best. Your goal here is to check out possible vendors and make a list of the most promising ones.
Look through the vendors’ websites. A vendor’s website is usually the first place you’ll visit, and it can give you a lot of useful information about the product, the company, and the services they provide. Here’s what you should think about to get the most out of this process:

7. Explore Your Audience
To effectively choose the right Learning Management System (LMS) features, it’s important to understand who your learners are, what they need, and how they learn best. Here are some key points to think about:
Demographics
- Age range: Different age groups may have different comfort levels with technology, which can affect how easy the LMS is to use.
- Educational background: The course content should match the educational level of the learners to ensure it is neither too easy nor too hard.
- Cultural diversity: If your learners come from different countries, the LMS might need to support multiple languages.
Technical Skills
- Digital literacy: The LMS should be easy to use based on the learners’ technology skills to avoid frustration and make learning smoother.
- Access to technology: Think about what devices learners will use to access the LMS and whether they have reliable internet connections.
8. Distinguish Between Must-have And Nice-to-have Features
After you choose the type of learning management software that works best for you, you can explore its specific features more closely. It’s important to know the difference between must-have features, which are necessary for your training programs to run well, and nice-to-have features, which can improve the learning experience but aren’t essential. Here’s a summary of each type:


9. Choose an LMS
Sometimes, you might find it hard to choose between two or three learning management systems (LMS) that all seem to meet your needs. A helpful step in this situation is to create a Request for Proposal (RFP). This document will help you gather important information from the companies, making it easier to compare your options. Here’s how you can do it:
1. Write a detailed RFP that explains what you need, what you expect, and any special situations your organization has. Make sure to include:
- Background information about your company and your project goals
- Clear technical and functional requirements
- Any specific integrations or custom features you want
- Security and compliance requirements
- Your budget and any pricing limits
- A timeline for implementation and plans for growth
2. Send this RFP to the vendors you are considering. Make sure to give them a clear deadline for when they should respond.
3. When you get the proposals back, evaluate them based on:
- How complete and clear their responses are
- How well each LMS solution meets your specific needs
- The value for the money and potential return on investment for each option
- The reliability of the vendor
4. Create a scoring system for each part of the RFP to help you compare and evaluate the proposals fairly. Choose the LMS vendor that best fits your needs.
Build Your Custom LMS with Laraforest
If you’ve made it this far, you know that LMS systems come with a wide range of features and functions. However, not all functionalities may be necessary for your needs. Each organization has unique goals, so a fully customized LMS solution tailored to your niche may be the best option.
To create a scalable and effective LMS, you’ll need expert professionals with experience.
Laraforest can help you achieve this. As a staff augmentation agency, Laraforest provides top developers from around the globe within 24 hours. With Laraforest’s 14-day trial option, you can ensure that your hiring decision is secure and effective.