E-learning and LMS blog articles

In recent months, we’ve seen a growing number of organisations exploring the idea of bringing their Moodle LMS in-house. On the surface, it sounds like a smart move: why not take control, reduce costs, and manage everything internally?

But before you make the switch or implement an in-house Moodle LMS for the first time, it’s worth taking a closer look. Running Moodle LMS internally may seem straightforward, but the reality is often more complex, more resource-intensive, and ultimately more expensive than many teams anticipate.

In this blog, we’ll explore why some organisations are tempted to migrate away from a SaaS Moodle LMS provider, what it really means to manage Moodle LMS in-house, and why choosing a trusted Moodle LMS provider like Hubken Group still makes sense for the majority of organisations.

Why organisations consider bringing Moodle LMS in-house

Let’s start with the motivations. There are several understandable reasons why a team might think about taking Moodle management into their own hands.

Perceived cost savings – The most common reason is financial. Many believe that hosting Moodle LMS internally will reduce or even remove licensing or hosting fees.

Data control and compliance – With increasing focus on data protection, GDPR, and information security, some organisations prefer the idea of keeping everything within their own IT infrastructure.

Customisation freedom – In-house control often feels appealing for teams who want to install plugins, manage upgrades, or apply branding changes without waiting for external approval.

Existing IT capability – If your organisation already has servers and a capable IT department, it might seem logical to add Moodle LMS to the workload.

Vendor frustration – Sometimes it’s as simple as dissatisfaction with an existing provider, whether due to cost, communication, or service quality.

All of these are valid reasons; however, while the motivations make sense, the execution can bring a number of hidden challenges.

The hidden realities of running Moodle LMS in-house

Taking Moodle LMS in-house often means discovering that what sounds like a simple hosting change actually introduces an entirely new layer of operational responsibility. Below are six areas that highlight what this really looks like in practice.

1. Infrastructure demands

Hosting Moodle LMS isn’t just about setting up a server. It requires a comprehensive technology stack that might include a database, certificates, backups, and secure data storage.

All of this needs to be monitored, maintained, and kept online with minimal downtime. Beyond setup costs, there’s a continuous cycle of patching, monitoring performance, and managing disaster recovery. In short, infrastructure is a 24/7 commitment, not a one-off project.

2. Technical skill requirements

To keep Moodle LMS running smoothly, you’ll need a range of experts that often goes beyond the capacity of a typical IT team; each plays a role in maintaining system performance and stability.

And when key staff leave, critical knowledge can easily be lost, leaving systems unsupported. By contrast, SaaS providers have experts whose combined skills and years of experience safeguard against that risk.

3. Ongoing maintenance and security

Moodle LMS, like any platform, must be regularly updated to stay secure. That means applying patches, checking plugin compatibility, monitoring for vulnerabilities, and ensuring uptime during upgrades.

When security updates are delayed or overlooked, the risk increases, not only of data breaches but also of falling out of compliance with standards like GDPR. For organisations that depend on Moodle LMS for essential or compliance-related learning, the consequences of downtime can be significant.

4. Software upgrades and plugin management

Moodle LMS evolves constantly, with new versions released several times a year. Managed SaaS partners handle this upgrade process at scale, with version control, automated testing, and rollback options. In-house teams, however, must dedicate time and resources to testing and troubleshooting, or risk disruption to their live platform.

Worried about paying for upgrades with a SaaS provider? No need to worry with Hubken, as we offer upgrades included as standard.

5. User support and administration

Running Moodle LMS in-house doesn’t just mean managing the software; it also means handling user queries, enrolments, password resets, and reporting requests.

These may sound minor, but they quickly add up. Without a dedicated support process, learners can experience frustration and reduced engagement.

6. Governance, process, and knowledge continuity

A successful LMS doesn’t run on technology alone. It depends on well-defined processes covering governance, permissions, data management, integrations, and backups.

Without those structures in place, systems can quickly become inconsistent or risky. SaaS providers follow strict protocols to ensure everything from data handling to disaster recovery is controlled and documented which is a standard that can be difficult to maintain internally.

The financial reality: short-term savings, long-term costs

On paper, bringing Moodle LMS in-house might look like a cost-saving exercise. But when you factor in staff time, infrastructure, maintenance, training, and risk, the total cost of ownership (TCO) often tells a different story.

For example, an organisation might reduce its SaaS subscription cost; however, within a year, it may have:

• Hired a part-time system administrator

• Paid for new monitoring and security tools

• Lost productivity during unplanned downtime

• Spent weeks testing upgrades and resolving plugin issues

Over a 3–5 year period, these additional costs frequently exceed the original SaaS fee, and perhaps more importantly, the internal focus shifts away from L&D strategy and learner experience toward technical management.

The SaaS advantage: a partnership that enables growth

Choosing a SaaS Moodle LMS provider like us isn’t just about convenience; it’s about strategic focus.

With a managed service, your organisation benefits from guaranteed uptime, proactive security, expert support, and regular updates. This allows your internal teams to focus on what really matters: designing effective learning strategies, creating engaging content, and measuring impact.

As learning ecosystems become more complex, integrating HR, CRM, and analytics tools, maintaining a secure, scalable platform becomes harder to achieve alone. Partnering with a specialist provider ensures your Moodle LMS instance evolves alongside your organisation’s needs, not behind them.

When in-house hosting can make sense

There are situations where bringing Moodle LMS in-house is viable. For instance:

• Large organisations with dedicated Moodle LMS specialists and enterprise-level IT infrastructure.

• Highly regulated industries that require isolated or on-premise systems for compliance.

• Research institutions that customise Moodle LMS extensively for innovation projects.

Even then, these are exceptions rather than the rule. For most organisations, the overheads of in-house management outweigh the perceived benefits.

Conclusion: Remember why outsourcing won

The rise of SaaS wasn’t a passing trend; it was a response to the real challenges of maintaining reliable, secure, and scalable LMS platforms. Many organisations now considering in-house management are rediscovering the same difficulties that SaaS was designed to solve.

Before making the move, take a step back and evaluate the total cost of ownership, not just in pounds and pence, but in time, expertise, and operational risk.

If you’re reviewing your Moodle LMS strategy or exploring whether in-house or SaaS hosting is the right fit for your organisation, our team at Hubken can help you make an informed, sustainable decision. Get in touch with one of our Moodle LMS experts to discuss your options.