Is your “free” LMS saving you money, or just shifting the costs elsewhere?
Public LMS is a good option at the start: no-brainer, easy to access, low on upfront costs, and widely adopted across schools and organizations. But when it comes to digging deeper, needing more features or requiring high-end customization, educators and businesses begin to notice that what starts as a simple & cost-effective solution often demands more than expected, in time, resources, and hidden investments.
Although with the global LMS market growing and expectations for digital learning at an all-time high, it’s the right moment to take a closer look at what these platforms cost and the value they bring to the table, not just in dollars, but in value.
So, before you choose based on price alone, let’s uncover what’s beneath the surface & make the right decision. Dive right in!
What is a Public LMS?
A Public Learning Management System (Public LMS) is an open-source or widely accessible platform to deliver, manage, and track online learning content, often at low or no cost. These platforms are usually used by organizations, schools, and universities for their blended or online learning requirements. These provide a common, standardized learning environment and are typically open-source or supported by organizations, governments, or non-profits.
Examples include Moodle, Google Classroom, and Canvas.
1. Per-User Pricing Adds Up Quickly
Public LMS platforms often start with a free or low-cost base, but as your user base grows—students, teachers, admins, or employees—so do the costs. Some platforms charge per active user, per course, or for access to premium features like analytics, integrations, or cloud storage.
What seems affordable for a small group can quickly scale into thousands of dollars as your organization expands. And if you’re relying on plugins or third-party tools to enhance the experience, those user-based fees often multiply.
Insider tip: When comparing platforms, don’t just ask for current pricing—ask how costs scale with usage. Get a breakdown of pricing & any hidden costs in LMS as well.
2. Limited Customization Behind a Paywall
Public LMS platforms usually give you a standard setup & come with no customization options —unless you’re ready to pay more. In free or basic plans, you can change a logo, tweak colors, or move a few elements around. But if you want the platform to match your brand, user flow, or teaching style, you’ll likely need to upgrade.
Features like advanced design controls, custom domains, branded certificates, or automated emails are often locked behind higher pricing tiers. And if you don’t have a developer on your team, making these changes can get tricky and expensive fast.
3. Feature Limitations in Base Plans
Base plans often look appealing, but they come with strings attached. You might get access to course creation, user management, and a few quizzes, but essential tools like advanced reporting, automation, mobile optimization, or third-party integrations are usually locked away.
This creates a frustrating gap. You can launch a course, but not track performance. You can enroll students, but not automate reminders or feedback. For growing teams, these missing features can stall progress and force rushed upgrades.
Insider Tip: Ask for a side-by-side comparison of features between the free and paid plans. If core tools are only available at the highest tier, you need to rethink.
4. Integration and API Access Costs
Connecting your LMS with tools you already use—like CRMs, email platforms, or payment gateways—sounds simple. But on many public LMS platforms, integration isn’t included in the base plan. API access, single sign-on (SSO), and essential third-party plug-ins often come at a premium.
That means even if the platform fits your budget, making it work within your existing system might not. And if you’re thinking of scaling or automating in the future, limited access to APIs can become a serious roadblock.
A thing that no one tells you about: Some platforms promote “easy integration” but only offer it through costly developer support or enterprise plans.
5. Storage and Bandwidth Restrictions
Public LMS platforms often place quite strict limits on how much content you can upload or how many learners can access it at once. Videos, PDFs, quizzes, and student data all count toward your storage quota, and high traffic can quickly eat into bandwidth allowances. Once you cross those limits, you either pay overage fees or are forced to upgrade.
This becomes a bigger issue as your courses grow richer and more interactive. And, when you are hosting video content or offering downloadable resources? That’s when storage caps hit hardest.
Insider Tip: Some platforms bundle bandwidth with storage to make it sound generous, but that also means you burn through limits faster.
6. Ongoing Maintenance and Support Fees
It’s easy to overlook support costs when choosing a public LMS, but they add up fast. While many platforms offer basic help docs or email support, timely help from real people often comes with a price tag. Priority support, dedicated account managers, or technical troubleshooting are usually reserved for higher-tier plans.
Even small changes—like fixing bugs, updating content layouts, or resolving performance issues—can require outside help or paid add-ons. For teams without in-house tech support, this creates unexpected ongoing costs.
Why is it so important? When issues pop up, slow or paid support can stall your entire system. What looks affordable upfront can cost you more in downtime, delays, and frustration. Reliable support isn’t a bonus—it’s a necessity.
7. Licensing and Renewal Traps
Many public LMS platforms lock you into yearly contracts with auto-renewals and hidden upgrade clauses. You might start with a low introductory rate, but when it’s time to renew, the cost jumps, and you’re often too deep into the system to back out easily. Some even bundle upgrades or user expansions into the license, forcing you to pay for features you didn’t plan to use.
Insider Tip: Always read the fine print. Ask about renewal terms, cancellation policies, and pricing changes after the first year.
8. Unused Features, Wasted Budget
It’s easy to get drawn in by all the bells and whistles—AI tools, gamification, advanced user roles, detailed heatmaps. But if you’re not actively using them, they’re just expensive extras sitting idle. Many public LMS platforms push these features into premium plans, making you feel like you need them to grow. In reality, you might only be using 40–50% of what you’re paying for.
This results in a bloated setup and a drained budget, especially for smaller teams or early-stage programs that need simplicity, not complexity.
Conclusion
Public LMS platforms can look like a budget-friendly choice at first glance, but as your needs grow, so do the hidden costs. From limited customization and storage caps to pricey upgrades and unused features, what starts small can quickly become overwhelming, both financially and operationally.
That’s why it’s important to look beyond the price tag and evaluate whether the platform truly fits your goals, team, and long-term plans.
Still wondering which way to go? Is it a public LMS or a private one?
Regardless of your confusion, our experts are here to help you weigh the options and choose a solution that works for you.
