The verdict in three sentences
The sticker price of business software often represents only 40 to 60 % of the real 5-year cost. In 2026, in Amsterdam, integration, data migration and maintenance regularly end up exceeding the initial investment. A rigorous TCO grid avoids budget gaps of 30 to 60 % and makes the trade-off defensible.
The hidden cost items
A savvy CFO budgets six items, not one. Here are the 2026 ballparks to include from the business case.
| Item | 2026 ballpark | Basis |
|---|---|---|
| SaaS license | EUR 20 - 150/user/month | Per active user |
| OR custom project | EUR 50,000 - 150,000 | One-off |
| Integration | 15 - 30 % of project | ERP, accounting, payroll |
| Data migration | 15 - 30 % of project | Depends on source quality |
| Training | EUR 3,000 - 10,000 | Adoption |
| Maintenance (TMA) | 10 - 18 % / year | Of software cost |
Maintenance, seemingly marginal, becomes the dominant item over a long horizon because it is paid every year.
5-year TCO: the example that changes the decision
Let us compare two scenarios for 50 users. The final gap often surprises leadership.
| Item | SaaS (EUR 50/user/month) | Custom (EUR 80,000) |
|---|---|---|
| Initial cost | 0 | 80,000 |
| License 5 years | 150,000 | 0 |
| Integration | 12,000 | 18,000 |
| Data migration | 8,000 | 16,000 |
| Maintenance 5 years | included | 40,000 |
| 5-year total | 170,000 | 154,000 |
At 50 users, both scenarios converge; custom pulls ahead beyond that, while SaaS stays cheaper below 30 users.
Building a defensible TCO grid
A solid TCO grid rests on three principles: a fixed horizon (5 years typically), a realistic 3-year volume (not today's user count) and an explicit maintenance line (10 to 18 % of software cost per year). Add an often-forgotten "change management" item and a 10 to 15 % contingency provision. This grid turns a purchase into a managed investment, comparable across vendors.
Mini case study
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Esther, CFO of a services SME in Amsterdam (48 users), evaluates a management system. The rep quotes EUR 50/user/month, i.e. EUR 28,800/year, presented as "the cost". Her TCO grid reveals the true 5-year budget: EUR 144,000 license + EUR 12,000 integration + EUR 8,000 migration + EUR 6,000 training = EUR 170,000. The sticker price represented only 85 % of the total, and crucially hid integration and migration. Thanks to the grid, Esther negotiates and provisions properly, avoiding an estimated EUR 40,000 overrun.
FAQ
What is the TCO of business software?
The total cost of ownership over a given horizon: license or development, integration, data migration, training and maintenance. It gives the real budget, unlike the sticker price.
Why is maintenance so important in the calculation?
Because it is paid every year, between 10 and 18 % of software cost. Over 5 years, it can represent half the initial cost and often flips the trade-off.
Is SaaS always cheaper than custom?
No: below 30 users yes, but the recurring license catches up then exceeds amortized custom beyond 50-80 users. It all depends on the 3-year volume.
How do you avoid budget gaps of 30 to 60 %?
By budgeting all six items from the business case, with a 3-year volume and a contingency provision. License price alone is the main source of error.
Should change management be included in the TCO?
Yes: training and support drive adoption, hence the return on investment. Unadopted software is a dead loss, whatever its price.
Let's scope your project. Send us your 3-year user count and functional scope, and we will build your comparative 5-year TCO grid. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.