The verdict in three sentences
The total cost of ownership (TCO) of business software over 5 years is almost always double the quoted build price. The forgotten line items (maintenance, hosting, enhancements, training, support) make up 40 to 55 % of TCO. Modelling these from the quote stage avoids nasty surprises and lets you compare custom and SaaS honestly.
The line items that make up TCO
An honest TCO adds five blocks: initial build, corrective and evolutionary maintenance, hosting and infrastructure, team training, and support. Each has its own dynamic: the build is one-off, the rest are recurring and grow with usage.
| Line item | 2026 range | Frequency |
|---|---|---|
| Initial build | 40,000-90,000 EUR | One-off |
| Annual maintenance | 8-15 % of build | Every year |
| Hosting / infra | 100-500 EUR/month | Monthly |
| Functional enhancements | 5,000-15,000 EUR/year | Annual |
| User training | 2,000-6,000 EUR | Year 1, then ad hoc |
| Support / on-call | 3,000-10,000 EUR/year | Annual |
Cumulative 5-year TCO, worked example
Take business software at 65,000 EUR build, 12 % maintenance, 300 EUR/month hosting, 8,000 EUR/year enhancements, 4,000 EUR year-1 training and 5,000 EUR/year support.
| Year | Build + recurring | Cumulative TCO |
|---|---|---|
| Year 1 | 65,000 + 24,400 | 89,400 EUR |
| Year 2 | 24,400 | 113,800 EUR |
| Year 3 | 24,400 | 138,200 EUR |
| Year 4 | 24,400 | 162,600 EUR |
| Year 5 | 24,400 | 187,000 EUR |
The build therefore represents only 35 % of the 5-year TCO. Against an equivalent SaaS at 50 EUR/user/month for 50 users (150,000 EUR over 5 years), custom is pricier here: user count tips the balance. In CFA francs, hard-currency hosting and support weigh proportionally more and must be scoped from the start.
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Mini case study
Claire, CFO of a 120-person industrial SME in Lyon, approved a 60,000 EUR build quote for a production management tool. Modelling the TCO, she adds 7,200 EUR/year maintenance, 3,600 EUR/year hosting, 6,000 EUR/year enhancements and 4,500 EUR/year support, i.e. 21,300 EUR/year of recurring cost. Over 5 years the real TCO hits 166,500 EUR, versus 60,000 EUR at quote. By budgeting these lines upfront she avoids a 106,500 EUR overrun and negotiates a capped maintenance+support package at 18,000 EUR/year, saving 16,500 EUR over the period.
FAQ
Why does TCO often double the build price? Because recurring items (maintenance, hosting, enhancements, support) accumulate over 5 years and usually exceed the one-off build cost.
How big are the hidden costs? Between 40 and 55 % of TCO. Evolutionary maintenance, ongoing training and support are the most underestimated.
How can I reduce 5-year TCO? Choose a standard, documented stack, negotiate a capped annual maintenance package, and prioritize enhancements by ROI rather than building everything.
Does hosting really cost 100-500 EUR/month? Yes, depending on traffic, redundancy and backups. An internal app for 50 users often sits around 200-350 EUR/month in 2026.
Should I include the cost of non-adoption? Ideally yes: poor training crushes usage and destroys ROI. Budget 2,000-6,000 EUR of training in year one.
Let's scope your project. Send us the functional scope and user count, and we'll build your 5-year TCO line by line. 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.
