Key Takeaways
Managed Services — Quick Summary
- 1Year 1: Implementation
- 2Ongoing Annual Costs
Support Governance Flow
Why TCO Matters
Most businesses significantly underestimate the total cost of CRM ownership. The license fee is often only 20-30% of the first-year cost. A proper TCO calculation helps you budget realistically and compare platforms accurately.
TCO Components
Year 1: Implementation
- Software licenses: platform + add-ons per user per month × 12 months
- Implementation services: Discovery, configuration, migration, integration
- Customization: Workflow development, custom fields, custom reports
- Data migration: Audit, cleanup, mapping, execution
- Training: Materials, delivery, time away from work
- Integration development: API connections, middleware
Ongoing Annual Costs
- License renewals
- Support and maintenance (managed services or in-house admin)
- Continuous improvement (new features, optimization)
- Training for new users and refresher training
- Integration maintenance
- Infrastructure (if on-premise)
Hidden Costs
- Internal team time on project (often underestimated)
- Change management and communication
- Data quality maintenance
- System downtime during upgrades
- Opportunity cost of delayed projects
TCO Calculation Example
For a 50-user mid-market implementation using a platform like Creatio (Enterprise tier $75/user/month + Sales add-on $15/user/month = $90/user/month):
| Category | Year 1 | Year 2-3 (annual) |
|---|---|---|
| Licenses (50 users @ $90/mo) | $54,000 | $54,000 |
| Implementation | $60,000 | $0 |
| Customization | $20,000 | $5,000 |
| Data Migration | $15,000 | $0 |
| Integration | $25,000 | $5,000 |
| Training | $10,000 | $3,000 |
| Support (Managed) | $18,000 | $18,000 |
| Total | $202,000 | $85,000 |
Platform pricing varies by vendor. For Creatio, see creatio.com/products/pricing for the latest rates.
3-Year TCO Comparison
When comparing CRM platforms, calculate 3-year TCO including all categories. A platform with lower license fees but higher implementation costs may have higher total TCO.
How AavishkarIT Helps
We provide transparent TCO calculations for CRM projects. Our estimates include all cost categories with detailed breakdowns. Use our TCO Calculator to compare your current costs with managed CRM support.
Downloadable Resources
Free templates and guides