Digital transformation costs include implementation, migration, integration, training, maintenance and the time your own team contributes. A monthly licence price is only one part of the budget. Start by defining the process, users and systems involved.
This is a budgeting framework, not a price list. The numerical example uses fictional budget units and does not represent market prices or a WebWizz quotation.
Compare the same scope first
A licence-only proposal cannot be compared directly with one that includes data cleanup and training. Create a shared requirements list and ask each vendor to identify included, extra-cost and unavailable items.
- Current and expected users, branches and transactions
- Data types, attachments and approximate migration volume
- Connections to accounting, inventory, payments or an existing CRM
- Permissions, reporting, exports and audit records
- Training, support hours, maintenance and acceptance criteria
Clarify what “integration included” means. A one-way export differs from two-way synchronisation with error recovery. The difference affects both implementation effort and ongoing operational work.
Separate licensing from operations
NIST describes SaaS as using a provider’s applications on cloud infrastructure. For budgeting, examine the actual proposal’s user limits, usage charges, add-ons and data transfer terms.
| Approach | Initial work | Recurring work or fees | Key question |
|---|---|---|---|
| Subscription service | Configuration, migration, training | Users, usage, add-ons, support | How does the bill change as usage grows? |
| Open-source deployment | Setup, customisation, migration | Hosting, upgrades, backups, maintenance | Who owns the operational work? |
| Custom development | Discovery, design, development, testing | Infrastructure, maintenance, changes | What is included in the handover? |
Open source does not mean zero operating cost. An open-source product can be offered as a paid hosted service, and custom software can be priced as a subscription. Evaluate licensing and operational responsibility as separate dimensions.
Build a three-year total cost model
36-month total = initial costs + recurring costs over 36 months + internal effort + planned changes + exit or migration costs.
Record the period and assumptions for every line. Avoid counting migration both inside an implementation package and again as a separate cost. Use consistent currency, tax treatment and usage assumptions across proposals.
A fictional comparison
Suppose option A costs 20 budget units initially, 3 units per month and another 12 units for internal and transition work. The total is 20 + (36 × 3) + 12 = 140 units. Option B starts at 65 units, costs 1.5 monthly and has 25 units in other costs: 65 + (36 × 1.5) + 25 = 144 units.
The figures are illustrative only. A low starting price does not establish a low total cost. Neither calculation determines the better choice until functionality, capacity and support are comparable.
Test three usage scenarios
Model current usage, expected growth and peak demand. What happens when user count doubles? Is storage billed separately? Are essential capabilities paid add-ons? Record the vendor’s renewal assumptions rather than silently treating today’s rate as permanent.
Include internal work. Data preparation, testing and training consume capacity even when they do not create a new invoice. Dependencies between teams affect the schedule and should be visible in the implementation plan.
Ask vendors these questions
- Is pricing based on users, devices, branches, transactions or data volume?
- What happens when a usage limit is exceeded?
- Which export formats are available, and are exports charged?
- Who performs backups and tests restoration?
- Who checks custom integrations after upgrades?
- Are support response and resolution times distinguished?
- What documentation is provided when another team takes over?
Review actual product and contract terms with the relevant people in your organisation. Clear written responsibilities make a technical and commercial comparison more useful.
Give the pilot measurable acceptance criteria
Test one bounded process before migrating the whole organisation. Measure proposal preparation time, repeated data entry and failed transfers consistently before and after implementation. Time saved is not automatically a cash saving: explain how the released capacity will be used.
Frequently asked questions
Is the cheapest licence the cheapest solution?
Not necessarily. Add-ons, manual work and later integrations can change the total. Equalise scope before comparing costs.
Why use three years?
It is a practical starting horizon, not a universal rule. Match the period to the expected useful life and review first-year cash requirements separately.
What should I prepare for a project discussion?
Describe your current workflow, user count, necessary integrations and expected outputs. Review the WebWizz portfolio and use the WebWizz website to start a conversation about scope.