Moodle is definitely targetted for smaller shops, like private colleges, schools, etc.. There's nothing restricting it from being used in large organizations, though, and it has a bunch of automation (automatic enrollment in Moodle courses based on enrollment status in another database, integrate logins with existing LDAP or other directory, etc.), but like most open source projects it's very much a community product and not the product of a for-profit entity trying to sell service to customers (that's available through third parties, though).
With universities and other large, corporate organizations, salesmanship (not necessarily technical polish) is what wins.
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