We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. View Privacy Policy
Published on:
February 17, 2022

LMS Meaning - Definition and Everything Else You Need to Know

Everybody loves short abbreviations! CRM, SaaS, HR, PR, CEO, CPA, ROI…so quick and easy to say and type. You can use them ASAP!

How about LMS? I’m sure you’ve seen the LMS acronym everywhere but what is the meaning of LMS?

LMS stands for Learning Management System. It’s basically software that makes educational processes more efficient and can be used by a wide variety of industries. It’s cost-effective, customizable, and boosts productivity. Interested?

Well, I plan on teaching you all there is to know about the meaning of LMS, so you’re kept in the loop and you can be the one name-dropping it at the next meeting.

Then when your buddy asks, “What does LMS stand for again?”

Just send him this article.

What Does An LMS Actually Do?

LMS software helps you create and manage educational resources, like lessons, tests, assessments, and more. You can also use it for training and learning analytics, communication, scheduling, and notifications.

A course builder and course management tool are usually the main features. Here’s how they work together:

  1. Create training material
  2. Manage training material
  3. Organize training material
  4. Deliver training material to learners
  5. Edit and update training material as needed

But that’s just the start.

Types of LMS

After knowing the base LMS meaning, we can now look into different types of LMS.

Depending on the needs of your business, there are three choices.

  1. Cloud-based
  2. Open source
  3. Self-hosted

Let’s look into these different types of LMS and see which one suits your particular company.

Cloud-Based LMS

The cloud-based type is software that’s hosted on an internet server instead of your own local server . This means the LMS dealer is responsible for the upkeep, data storage,, updating with new features, etc.

This is what Tovuti is.

Cloud-based LMS is sort of like an apartment or rental property. The place is yours to live in, but your landlord takes care of it,, shovels the driveway when it snows, and so on.

Open-Source LMS

The meaning of LMS open source software is that the source code for the software is released under a license in which the copyright holder grants users the rights to study, change, or distribute the software to anyone for any purpose.

This gives you a heap of freedom but also a heap of responsibility in upkeep and maintenance.

Open-source software is often developed publicly and cooperatively.

Taking our apartment metaphor further, open-source software is like being a homeowner. It’s yours to modify, decorate, build on…but it’s all your responsibility.

Self-hosted LMS

The opposite of cloud-based LMS, self-hosted LMS software is stored and hosted on your local server. This means your company is responsible for data storage, privacy, updates, etc. They’re generally pricier, as you have to manage your own IT maintenance. Plus, a certain level of security knowledge is a must when owning and operating a self-hosted LMS.

A self-hosted LMS can be open source, but it can also be an uneditable Proprietary LMS.

So depending, it can either be an owned property you can decorate and modify…or it’s a home that you technically own, but your mother-in-law paid for most of it so you can’t really change the decor or she’ll be pissed.

Who Uses LMS?

LMS industries


Well, close to it.

When discussing the meaning of LMS, it’s pertinent to mention the many industries that utilize it foreducational and training programs.

Matthew K, a clinical training specialist, uses Tovuti LMS to create courses, host webinars, offer a library of clinical resources, and offer a customer forum page. And Patch, chief technology officer for an elearning company with a focus on IT, says he uses Tovuti LMS for a truly immersive classroom teaching experience integrating coursework and virtual classrooms with interactive content and social tools.

These are only a sampling of testimonials from a variety of industries. Because every industry can benefit from a good LMS:

1. Education

It’s obvious to say that the education industry was the original industry to adopt, utilize, and understand the importance of LMS. Schools K-12 to universities use LMS software, as do any other educational institute.

It’s great tech to have for a classroom and works equally well for elearning, and blended learning.

2. Healthcare

The healthcare industry is really taking advantage of the features and services of an LMS. Besides hosting courses and informative libraries for customers, they can provide training to healthcare professionals that are compliant with current rules, easy-to-update, and easy-to-digest.

And FYI, cats and kittens – this includes the veterinary industry.

3. IT

Is it any surprise that the technology industry utilizes one of the hottest bits of technology today? Besides being perfect for new hire training (and streamlining IT training is a load off your mind), it’s also useful for keeping established employees up-to-date on changes in the industry.

4. Sales

Training, onboarding, and ramp-up periods can all be facilitated by an LMS in the sales industry. Sales utilizes courses on social selling techniques and B2B selling, virtual sales playbooks, and social tools that let your top performers share their tips, tricks, and secrets of a good sale.

Sales reps can just spend time practicing their pitch rather than laboriously studying boring manuals.

5. Insurance

Insurance agencies are benefiting greatly from:

  • Digital risk management courses
  • Compliance essentials
  • Financing strategy lessons
  • General health and safety courses
  • Claims adjuster training

Among other things.

It’s crucial in the insurance industry to quickly adjust to trends and market changes, so there’s a need for a fast and flexible training system.

6. Legal

LMS in the legal industry is used for staff and paralegal training and it really reduces the everyday cost of legal education. This is beneficial whether you’re a small firm or a large practice with dozens of attorneys and other employees.

Yet another industry that benefits greatly from easily deliverable rules and regulations. Because as the world shifts and changes, you can shift and change your courses.

7. Manufacturing

LMS software can help automate and streamline training for employees on the factory floor as well as employees that interact and engage with customers. 

We might sound like a broken record by now, but manufacturing goes through a lot of regulation changes that can be made easier by updating, editing, and delivering new courses through an LMS course authoring tool.

8. Hospitality

Hospitality is made of compliance, rules, regulations, and law. 

Having a quick and effective way of teaching them to staff is essential and “quick and effective” is what LMS are built for!

LMS software enables flexibility and quick edits to courses, making it a breeze to train seasonal employees who are quite common with hospitality, travel, and leisure businesses.

But this is just the tip of the iceberg. Other industries are finance, non-profit, human resources, politics and local government, retail…you can see that pretty much any business can gain a lot from learning management systems.

Especially since Tovuti’s white-labeling makes it personal and customized. We talk about this in-depth in White Labeling: Customize Learning Management System.

Typical Features of LMS

You’ve got a good grasp of what is the meaning of LMS, the LMS acronym, types of LMS, which industries use LMS…what else is up on our crash course, you ask?

Let’s talk about some common elements and features in a typical LMS. Or if not “typical”, what an LMS should have to be worth your time.

And yes,Tovuti happens to have these. 



Course authoring and course management

  • Built-in course authoring and management allows you to create, organize, edit, and deliver instructional courses. Create dozens of different types of interactive content that are engaging, social, and gamified.

Customization, personalization, and white-labeling

  • Having a consistent, branded design is a must - it just looks and feels more professional - so being able to white-label and personalize your LMS is a must. Customizable login pages, personalized learner portals, and extendable enterprises all just add to the brand immersion.

Creative course design and unique learner engagement

  • With dozens of interactive content design choices, you know you can get creative with course authoring. From gamification to quizzes and exams, to videos, PowerPoint, memory games, and virtual tours…

Will you ever run out of content ideas?


  • Such as SCORM and AICC compliance. These standards ensure that the content you’re distributing ‘plays well’ with your LMS and is accessible to your users. 

For more info, check out our SCORM eLearning standard explained article.

Reporting and analytics

  • Easily building custom reports and a learning analytics dashboard are attractive features in a learning management system. They can help track learner progress, measure training effectiveness within a company, and more.


  • You know that notification on your phone that reminds you to brush your teeth? Automated alerts in your LMS help remind trainees that they have an assignment coming up or an event to attend.


  • From scheduling events, to assignments and lessons, to outgoing email messages, an LMS will really keep your training and educational activities organized.

Groups, forums, and profiles

  • Social tools in an LMS help learners stay engaged with the program and involved with each other. Group communities, forums, and social profiles keep trainees and students connected and encourage peer-to-peer interaction.

Seamless integration

  • Integrating other software to effortlessly fit into your LMS lets your business processes flow more naturally. Being integrated with tools like Zapier, Stripe, OneLogin, Microsoft Active Directory, and more just makes you juggle one less thing.

Mobile Responsive

  • It’s important that your LMS is accessible on every device – including smartphones and tablets – to maximise engagement and minimize unnecessary headaches for users.


  • Your LMS can indeed be set up with subscription management, promo codes, and credit card processing so you can have your own little education store right in your software! You can quickly and easily assign prices to courses and make them available for purchase…all within your LMS.

But this is just the start. LMS features can (and should!) go on and on. It might just surprise you.

lms features


Benefits of Using an LMS

Are you kidding me? We could write an entire article on the benefits! From reduced costs to interactive content for learner engagement, the benefits of implementing an LMS in your business are outstanding.

Was that a little obvious of a set-up?

So sue us, it’s a good blog post.

Benefits for organizations

So you need a little help convincing the higher-ups to implement an LMS, huh? You pitched the idea and all you got in response was:

“Huh? What is LMS stand for?”

what is LMS


Yeah. You need our help.

This table will spell it out loud and clear:


Why it matters

Reduces costs

Worldwide, companies spend $359 billion on training annually and only 25% of training programs measurably improve business performance

Boost employee engagement and productivity

22% of staff turnover occurs in the first 45 days of employment - that means the onboarding phase

1 out of 3 employees say that “uninspiring content” is a barrier to learning

Manage, edit, and update content instantly

30% of the skills necessary for a job are now irrelevant and that number gets higher every year

Analytics and tracking help you efficiently see what works and what doesn’t

Only 12% of learners say they apply the skills received from training to their jobs

Automation keeps everything streamlined and efficient

Automated reminders are shown to reduce no-shows by 38%


By amping up usable skills and employee engagement, your company can not only have more top performers but ones that stay with the business longer. And all for a lot less money than traditional training and education costs.

You really can’t lose.

Now let’s get to the employee benefits…and remember, what benefits them benefits the company.

Benefits for employees

benefits for employees

Ah, the simple employee. The worker. The learner.

A simple man who…juuuust happens to be a vital workforce in your business that’s costing you money, time, and resources.

Here’s another table for your perusal:


Why it matters

Learn at your own pace

Only 38% of learning professionals believe that their training meets their learners’ personal needs

Avoid information overload, review any material

After one day, people forget more than 70% of what was taught in training

Active, engaging learning

74% of surveyed employees feel they aren’t reaching full potential at work due to lack of development opportunities.

Feedback via ratings and comments

89% of HR leaders agree that employee feedback is essential

Bite-sized bits of knowledge via microlearning

People who learn in short bursts are shown to retain 20% more of the information

What’s that? You haven’t heard of microlearning?

Microlearning is teaching through little bits of easy-to-digest knowledge to help your brain retain the information. Things like little slideshows, short videos, etc.

But this would be inefficient and expensive without an LMS, wouldn’t it?

If you want to know more, read about it in this blog post about microlearning eLearning in bite sizes.

What is LMS Used For?

what is LMS used for

What does LMS mean for the company on a daily basis? What is it generally used for?

For a lot of companies, you may find you use various administrative, tracking, and automation tools every day. It’s pretty much another employee.

Education and training are broad topics, I’d say. So that means the uses are pretty vast. Training, onboarding, brushing up on compliance and product knowledge, and even using it as a form of social media are possible.

Feast your eyes.

  • Employee training
  • Onboarding
  • Retain employee knowledge
  • Train partners and customers
  • Compliance and regulation training
  • Product knowledge training
  • Scheduling and organizing training sessions and events
  • Communicate, share, and collaborate with social tools
  • Knowledge base 

Quick creation and delivery of training materials like handbooks make those first six bullet points a breeze. Employee training, onboarding, retaining employee knowledge, educating customers, and teaching compliance, regulation, and product knowledge are all aided with smooth, easily editable course authoring.

Managing training sessions and events are a breeze with integrated calendars, automated reminders, and automated notifications. They help you stay on top of things so you won’t be forgetting or overlooking anything.

Communities, customized learner portals, forums, and social profiles all facilitate collaboration and communication throughout your organization. They keep feedback flowing, peers sharing information with one another, and everyone on the same page.

That last bullet point? It’s basically a big business library.

Looking for information and doing research is essential for most jobs and can be really frustrating…but when it’s right at your fingertips research can actually be fun.

have fun


Frequently Asked Questions


What is the best LMS for corporations & businesses?

Many learning management systems aren’t just for schools and universities,Tovuti for example is designed for corporations and businesses. Learning isn’t just for little kids with lunch boxes, and Tovuti gets that.

All features have been designed to facilitate corporate training and know-how – because everybody needs a good education.

How to set up LMS?

Setting up an LMS can be daunting! But at Tovuti, we pair new clients with a training coach to help iron out the details. You’ll receive coaching for the first 30 days, up to 4 coaching sessions of up to 60 minutes each with your training coach.

You can also check out our help page.


LMS meaning conclusion

What is the meaning of an LMS? The ABCs of the LMS acronym have been thoroughly discussed and examined, from the meaning of LMS to the features to the benefits.

Employee training can be a hassle and a headache. It can even lead to quick employee turnover when the training goes sour.

But implementing an LMS helps ease learning, engage trainees, and reduce costs for a myriad of industries. And these benefits are enjoyed by both organization and employee.

Why not enjoy these benefits yourself? Watch our demo and iron out the details so you can start seeing the advantages of a learning management system.

Your next training session could be handled by Tovuti LMS.

And to think…you didn’t even know the meaning of LMS at the beginning of this blog post!

Tyson Chaplin

Tyson Chaplin earned his Master of Educational Technology degree from Boise State University in 2014. He also earned a graduate certificate in Technology Integration and holds teaching certificates in online teaching, special education, and history.

Tyson is an Idaho native who is passionate about technology and how it can help all people learn and better themselves. He has worked in both public and private sectors. Tyson enjoys cooking and traveling with his wife, Malia, and restores vintage video game systems in his free time.

Read More
Tovuti 10-Minute Demo

Quick and comprehensive video recording of the #1 Ranked Learning Management System.

Watch Video
Tovuti 10-Minute Demo

Quick and comprehensive video recording of the #1 Ranked Learning Management System.

Related Blog Articles

Tips and Trends
Tovuti is on the cutting edge of online learning and has curated tips and trends for those involved in the e-learning and LMS space.
Visit the Blog