Capillary LMS

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: •SaaS •Emergence of SMB sector as a strong buyer •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 delivery models, including traditional license software, an Application Software Provider (ASP) or hosted model, or infrastructure as a service. “SaaS growth is outpacing all of them. Furthermore, the growth isn’t confined to a single market. It extends across all market segments,” said Lynda Stadtmueller, Program Director, Cloud Computing, Frost & Sullivan.

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
  • Expected cost savings vs. traditional software license
  • Decreased time to implement new applications
  • Greater functionality of SaaS applications
  • Avoidance of costs for servers and networks
  • Increased need for process automation
  • Decrease functional staff


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
  • Offer easy integration with other software
  • Have end-to-end performance SLAs
  • Provide easy customization
  • Be available at a low price
  • Provide a single, federated sign-o to SaaS apps
  • Offer comprehensive visibility into usage
  • Allow users to subscribe to SaaS bundles
  • Bundle SaaS apps with a centralized administration
  • Run on an open-source platform

 Product Overview

Capillary LMS is a cloud-based software application for administration, documentation, tracking, reporting and delivery of electronic educational technology also known as e-learning. LMS range from systems for managing training and educational records to software for distributing online blended hybrid courses of any kind over the internet with features for online collaboration. Many corporations use LMS to deliver online courses to augment on premises teaching. LMS also augments the lessons a teacher is giving in a brick and mortar environment, not just replace them. Corporate training departments use LMSs to deliver online training as well as to automate record-keeping and employee registration. Capillary provides flexible delivery models from our cloud-based SaaS to managed services and everything in between with our Professional Services team.