The Secret to Calculating Software Total Cost of Ownership

Posted on 6/14/16 2:48 PM by Kristen Goecke

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There is a lot that goes into purchasing an Online Registration software solution and cost is a HUGE factor, as it should be. When you break it down, the cost of the software isn’t always just monthly payments or a one time large upfront payment. You have to watch out for hidden fees, hardware costs, training costs - those rumors of hidden fees and unspoken costs might not be rumors.

So how do you find out how much does a software solutions really cost?

It’s a secret.

The Secret to Calculating Software Total Cost of Ownership

Nah, it’s not but the answer to that question can require a little bit of research.  Just knowing what questions you need to ask makes calculating total cost of ownership (TCO) a breeze.

3 is the magic number!

First off, as your business grows and changes over time with new offerings, business requirements and staff turnover your Online Registration software solution needs will likely change as well.

The best way to estimate and get a clear picture of your total cost of ownership (TCO) is to look out over three years.

When calculating TCO, remember to ask about and add the cost of the following:

  1. Software licenses.

  2. Any hardware necessary, e.g., rackspace, servers.

  3. Any add-on applications planned for the first three years.

  4. Any internal IT resources or outside consultants for implementation.

  5. Any customisation.

  6. Three years technical support.

  7. Up-front training to learn the system.

  8. Recurring or additional training for new employees or new functionality added to the system.

If you still aren’t sure what the total cost will be after you ask about the above, don’t be afraid to ask for clarification and/or a detailed example of how cost is calculatedn so you won't be taken by surprise. Some surprises are no fun at all.

Goodness, there is a lot to consider when searching for Online Registration software! Never fear, the Ultimate Online Registration Software Buyer’s Guide is Free for you to download. It’s even got a checklist.

Download the Buyer's Guide