Building Your Own LMS

When you build, you retain full control over everything. Every feature, every workflow, and every integration can be customised to your exact way of working. You own the system, control its fate, and develop it as your business evolves.

For some companies, this is a strategic choice. If your LMS is integrated into your product, or if training is a competitive advantage, then having that control can be a real advantage.

But this path comes with a price. Custom development is expensive and time intensive. It’s not uncommon for costs to reach millions before the platform is fully operational.

A full build can take a year or more, delaying any real return on investment. You’ll also need a dedicated cross-functional team of developers, UX designers, project managers, content specialists, and technical support.

Once the platform goes live, maintenance never really stops. Security patches, adherence to standards like SCORM and xAPI, and performance tuning are all continuing endeavors.

Scaling to thousands of global users adds even more complexity.

Building your own LMS makes sense if it’s at the heart of your business model or vital for competitive differentiation. Otherwise, the cost, time, and continuous effort may negate the benefit.

Buying an LMS: Closed Source or SaaS

Commercial LMS solutions take you in the opposite direction. They’re pre-built, typically configurable in weeks. You lack the up-front development cost, and hosting, upgrades, and security are managed by the vendor.

SCORM, xAPI, and accessibility compliance are features that are already built-in. That enables your team to focus on rollout, engagement, and results instead of infrastructure.

The trade-off is flexibility. Closed-source platforms can be rigid. You might need to fit your processes into their model. Deep customization is costly and occasionally technically limited.

You’re also at the mercy of the vendor’s roadmap, so you wait for new features or use workarounds when priorities aren’t aligned. Licensing fees add up over time, especially at scale. And if you ever need to switch vendors, migration is painful.

Closed-source solutions are ideal when speed is critical, training needs are standard, or you prefer a fully managed experience with dependable support.

Buying an LMS: Open Source

Open-source systems give you another freedom. The source code is accessible, so you can set up, extend, and integrate as needed. You have room to shape the system around your learning environment and integrate it with other software your business uses.

Open-source projects are usually community-driven and deliver ongoing innovation with new features and improvements on a frequent basis.

It should be noted that open source does not always mean free. Most open-source LMSs carry optional subscriptions, hosting fees, or enterprise support fees. Such fees cover infrastructure and technical expertise needed to keep the system stable, secure, and updated.

Even with this, the total cost is still lower compared to traditional commercial licenses.

The challenge is that open-source solutions are not plug-and-play. Implementation requires technical skill. You’ll need the right team to handle hosting, updates, and integrations. If customisations aren’t carefully managed, upgrades can break existing functionality.

Governance and scalability also become more complex as your user base grows.

Open-source solutions suit those organizations that value customization and control and have the technical know-how to manage upgrades and customizations over the long-term.

A Hybrid Option: Open Source with Enterprise Support

Most end up somewhere in the middle. They choose a flexible open-source platform and tailor it with the help of a certified partner.

This hybrid option marries freedom and framework. It offers the creative freedom of open source and the reliability of enterprise support.

Totara is a strong example. It combines the openness of open-source software with enterprise-grade reliability. Through its certified partner network, companies get expert advice, structured implementation, and managed upgrades. These partners understand how to customise the platform safely, integrate with enterprise systems, and maintain performance at scale.

This approach removes much of the risk of “strictly free” open-source LMSs while still providing the flexibility and transparency that make open source so compelling.

The outcome is an LMS that grows with your organisation rather than constrains it.

Hybrid platforms generally incorporate advanced features—role-based content deployment, collaboration spaces, data dashboards, and integration with learning analytics tools. This integration makes it easier for you to connect learning outcomes to performance and business outcomes.

A supported hybrid model also helps organizations manage cost and complexity. You don’t need to begin from the ground up; you start with a proven foundation and customize only where it truly adds value.

Balancing the Decision Factors

Every LMS decision depends on context. Start with these questions:

• Strategic value: Is your LMS a strategic part of your business model or more infrastructure? Build if it’s core, buy if it’s supporting.
• Budget and capacity: Is your organization able to make a long-term technical commitment, or would you rather leverage a vendor’s expertise?
• Time pressure: How soon must you deliver learning?
• Scalability and compliance: Will you need multilingual access, worldwide hosting, and HR or CRM system integration?
• Total cost of ownership: Estimate the overall costs over five to ten years of development, support, and maintenance versus subscription and licensing.

When you look at things through these lenses, the best way ahead has a way of making itself known.

Common Market Trends

Large organisations: Usually adopt commercial or enterprise-supported open-source platforms. Full custom developments are rare due to complexity and cost.

EdTech startups or training providers: Usually develop custom or semi-custom solutions because the LMS is part of their product.

Medium-sized organisations: Usually adopt configurable open-source platforms to get the right balance between flexibility and speed.

Making the Right Decision

Finally, there is no single answer, only the optimal answer for your requirements.

If learning is a competitive advantage for you, it may be worthwhile to invest in a build or a highly customized open-source platform.

However, if your goal is to deliver scalable, reliable training in a cost-effective way, buying or implementing an existing platform is generally the way to go.

A partner-supported hybrid offers the best of both worlds. You get flexibility without the agony of having to support it all yourself. You also have a clear roadmap to scale and evolve your platform as your learning strategy evolves.

Choosing the right LMS is not just a technical decision. It’s a strategic one that will affect how people learn, grow, and perform at your organization.

As you align your platform with your business goals, your LMS becomes more than a tool—it becomes a source of impact and continuous improvement.