Have you looked at other LMS? There are other options too. If you're into opensource, moodle and sakai are probably the ones to look into, since having a large userbase in the OSS world is important. However, if you are looking to save money, I'd be ultra realistic about the real costs involved. It is free to set up moodle and running it as a demo. I think for production deployment though, you will end up spending a lot more with customization, setup, etc. Not to mention all the backporting you'll end up doing for all the future upgrades. It's likely that you'll either hiring someone inhouse parttime if not fulltime to be the moodle admin. Grant it, you will probably still end up spending less than Blackboard or WebCT. But the difference is not $$$$$ vs free, more like $$$$$ vs $$$$. You should also take a look at some other available systems, such as desire2learn or angel. Also, I have heard great things about some new tools, (for those who care about latest tech jargons) quoted by many as elearning 2.0. The one that has been mentioned a lot where we are is called Digication. Many of these other tools are much more intuitive. I know about Digication also because they have a great portfolio tool.
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