Why Moodle?

Moodle is an open source Learning Management System (LMS) used by universities, K-12 schools, and both small and large businesses to deliver training over the Web. The Moodle project was created by Martin Dougiamas, a computer scientist and educator, who started as an LMS administrator at a university in Perth, Australia. He grew frustrated with the system's limitations as well as the closed nature of the software which made it difficult to extend.

Martin started Moodle with the idea of building the LMS based on learning theory, not software design. Moodle is based on five learning ideas:

With these five points as reference, the Moodle developer community has developed an LMS with the flexibility to address a wider range of business issues than most closed source systems. Throughout this book we will explore new ways to use the social features of Moodle to create a learning platform to deliver real business value.

Moodle has seen explosive growth over the past five years. In 2005, as Moodle began to gain traction in higher education, there were under 3,000 Moodle sites around the world. As of this writing in July, 2010, there were 51,000 Moodle sites registered with Moodle.org. These sites hosted 36 million users in 214 countries. The latest statistics on Moodle use are always available at the Moodle.org site (http://moodle.org/stats).

As Moodle has matured as a learning platform, many corporations have found they can save money and provide critical training services with Moodle. According to the eLearning Guild 2008 Learning Management System survey, Moodle's initial cost to acquire, install, and customize was $16.77 per learner. The initial cost per learner for SAP was $274.36, while Saba was $79.20, and Blackboard $39.06. Moodle's open source licensing provides a considerable cost advantage against traditional closed source learning management systems. For the learning function, these savings can be translated into increased course development, more training opportunities, or other innovation. Or it can be passed back to the organization's bottom line. As Jim Whitehurst, CEO of RedHat, states: "What's sold to customers better than saying 'We can save you money' is to show them how we can give you more functionality within your budget." With training budgets among the first to be cut during a downturn, using Moodle can enable your organization to move costs from software licensing to training development, support, and performance management; activities that impact the bottom line.

Moodle's open source licensing also makes customization and integration easier and cheaper than proprietary systems. Moodle has built-in tools for integrating with backend authentication tools, such as Active Directory or OpenLDAP, enrollment plugins to take a data feed from your HR system to enroll people in courses, and a web services library to integrate with your organization's other systems. Some organizations choose to go further, customizing individual modules to meet their unique needs. Others have added components for unique tracking and reporting, including development of a full data warehouse.

Moodle's low cost and flexibility have encouraged widespread adoption in the corporate sectors. According to the eLearning Guild LMS survey, Moodle went from a 6.8 % corporate LMS market share in 2007 to a 19.8 % market share in 2008. While many of these adopters are smaller companies, a number of very large organizations, including AA Ireland, OpenText, and other Fortune 500 companies use Moodle in a variety of ways. According to the survey, the industries with the greatest adoption of Moodle include aerospace and defense companies, consulting companies, E-learning tool and service providers, and the hospitality industry.