The verdict in three sentences
For a London company with 900 employees, a SaaS LMS billed at 3 to 8 EUR (about 3.30 to 8.70 USD) per user per month costs 32,400 to 86,400 EUR a year, which often makes it the most expensive option over three years. Hosted and customised Moodle (8,000 to 25,000 EUR upfront) offers the best balance of cost and control if your learning paths stay conventional. A custom LMS (40,000 to 100,000 EUR) is only justified when training sits at the heart of a specific business process with deep HRIS integration.
Three options, three cost models
The learning and development lead is really comparing three business models. SaaS is a subscription that grows with headcount. Moodle is free open source software where you pay for hosting, customisation and maintenance. Custom development is a heavy upfront investment followed by annual maintenance.
| Criterion | SaaS LMS (360Learning, Docebo, TalentLMS) | Hosted and customised Moodle | Custom LMS |
|---|---|---|---|
| Upfront cost (EUR) | 2,000 to 10,000 (setup) | 8,000 to 25,000 | 40,000 to 100,000 |
| Recurring cost for 900 users | 32,400 to 86,400 a year | 4,000 to 12,000 a year | 6,000 to 15,000 a year |
| Time to go live | 4 to 8 weeks | 8 to 12 weeks | 4 to 6 months |
| HRIS integration (Workday, HiBob, Sage People) | Standard connectors | Plugins or API work | Custom and deep |
| User experience customisation | Limited to theming | Strong, with development | Complete |
| Ownership of data and code | Data exportable, code not | Full | Full |
| Vendor lock-in | High | Low | Low if code is handed over |
The key figure is recurring cost. With 900 active users, every euro per user per month adds 10,800 EUR a year. Some vendors bill per active user rather than per enrolled user, which cuts the bill by 30 to 50 % when part of the workforce trains only once a year. Always ask for both pricing methods.
Total cost over three years
Comparing quotes at a single point in time is misleading. The right indicator is total cost of ownership over three years, including maintenance and hosting.
| 3 year scenario (900 employees) | Upfront investment | Recurring over 3 years | 3 year total (EUR) |
|---|---|---|---|
| Entry level SaaS at 3 EUR | 4,000 | 97,200 | 101,200 |
| Mid range SaaS at 5 EUR | 6,000 | 162,000 | 168,000 |
| Premium SaaS at 8 EUR | 10,000 | 259,200 | 269,200 |
| Standard customised Moodle | 15,000 | 24,000 | 39,000 |
| Advanced Moodle with HRIS connector | 25,000 | 36,000 | 61,000 |
| Custom LMS, medium scope | 70,000 | 36,000 | 106,000 |
Over three years, Moodle is clearly the cheapest. Custom development ends up close to entry level SaaS, but leaves you owning an asset. SaaS still has real advantages: off the shelf content, built in authoring tools and upgrades with no internal project. It suits two person L&D teams with no technical support.
What about funding?
In the UK, the Apprenticeship Levy (0.5 % of a paybill above 3 million GBP) funds approved apprenticeship training, not the purchase or development of a platform. The LMS remains a company investment. A well designed LMS does, however, simplify evidence of mandatory training (health and safety, compliance, GDPR) and the off the job hours records that apprenticeship providers must keep.
Mini case study
Rachel, head of learning at a 900 employee services company in London (illustrative persona), currently pays a SaaS LMS at 6 EUR per user per month, or 64,800 EUR a year. She is evaluating a customised Moodle with a HiBob connector at 22,000 EUR, plus 10,000 EUR a year for hosting and maintenance.
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Over three years, the SaaS would cost 194,400 EUR. Moodle would cost 22,000 + 30,000 = 52,000 EUR. The saving reaches 142,400 EUR, about 47,000 EUR a year. She plans 0.3 FTE internally to administer the platform (around 18,000 EUR a year fully loaded), which brings the net gain to roughly 29,000 EUR a year. The decision stays favourable, provided she buys or produces the content previously bundled in the subscription.
FAQ
How much does an LMS for 900 employees cost in 2026?
Between 32,400 and 86,400 EUR a year as SaaS, around 39,000 to 61,000 EUR over three years with customised Moodle, and 40,000 to 100,000 EUR upfront for a custom build.
Is Moodle suitable for companies, not just universities?
Yes, provided you invest in a modern theme, a clean configuration and an HRIS connector. A budget of 8,000 to 25,000 EUR delivers an experience comparable to SaaS for conventional learning paths.
When does a custom LMS make sense?
When training triggers job certifications, feeds specific HR workflows or also serves customers and partners. Below that need, 40,000 to 100,000 EUR is hard to justify.
Can the Apprenticeship Levy pay for the platform?
No. The levy funds approved apprenticeship training delivered by registered providers, not software. The platform stays a company investment.
How long does a migration away from SaaS take?
Allow 8 to 12 weeks for a customised Moodle, including 2 to 3 weeks to migrate training histories and exportable SCORM content.
Let's scope your project. Tell us your headcount, HRIS and priority learning paths, and we will compare Moodle and custom options with an indicative budget and an 8 week to 6 month schedule. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
