I constantly come across clients who seem to be very impressed by the free tag that Moodle comes with. It is both disappointing and funny at the same time. What clients fail to realize, initially at least, is that there's no such thing as 'free lunch'. And there will never be. I think clients falsely associate open source with being free, and that lures clients to products like Moodle. Only over a period of time do they understand the total cost of ownership of Moodle – servers, development resources, and license fees disguised as administration charges. And I believe that there are several license based LMS products out there, which would actually be cheaper than Moodle on total cost of ownership basis. Go explore for your benefit!
We've written about this in more detail earlier. But there's no harm in repeating a good message.