Lecando LCMS Business Model and Price Structure

The Lecando business model is designed to generate added value to IBM Lotus LMS and IBM Lotus WCL customers all around the world. This is accomplished through a close cooperation on both a technical level and at customer level as well as a use of IBM business systems such as IBM Passport Advantage.

An eLearning Solution
The functionalities of the IBM Lotus LMS/WCL are divided into two parts: one part towards students/instructors and one part towards administrators. The majority of the features such as reporting, authoring tool, user management and course management is of administrative nature and are used only by a fraction of the users at the customer. But it is still this functionality that generates the value of the IBM Lotus LMS/WCL as opposed to just use a stand-alone web server to distribute content to the students.

The Lecando LCMS provides an added value to the solution in the same way as the administrative features in the IBM Lotus LMS/WCL and that is the reason for the business model and pricing.

Lecando LCMS Site License
Since Lecando LCMS is a part of a solution it is priced as an add-on to the solution and has part numbers and part descriptions in line with the ones for IBM Lotus LMS/WCL. The basic price for Lecando LCMS in IBM Passport was calculated as twenty percent of the IBM Lotus LMS/WCL price for Per User and Extranet CPU licenses.

Therefore it seams like the customer buys per user licenses of Lecando LCMS but in reality they are buying a site license for Lecando LCMS which price is based on the size of the IBM Lotus LMS/WCL installation that the customer has.

This pricing model is easy to use since the Lecando LCMS price is decided by the IBM Lotus LMS/WCL price to the customer and it also supports aggressive pricing from IBM.