Key takeaways
- Compare options over several years, not the first-year price
- Include internal staff time, which is often the largest hidden cost
- Count the cost of integrations, migration and eventual exit
- Do not forget the cost of the current process you are replacing
Cost components to include
| Component | Examples |
|---|---|
| Licences or subscription | Per-student, per-user or tiered pricing; annual increases |
| Implementation | Configuration, project management, vendor or partner services |
| Data migration | Extraction, cleansing, trial loads, reconciliation |
| Integrations | Connections to SIS, LMS, finance, payment and messaging systems |
| Training | Initial training by role, plus training for new staff each year |
| Running costs | Hosting (for self-hosted options), support, administration time |
| Change | New requirements, upgrades, re-configuration |
| Exit | Data export and the cost of moving again in future |
Include the cost of doing nothing
The current process has costs too: staff hours spent on manual data entry and reconciliation, enquiries that are never followed up, and errors that need correcting. Estimate these honestly, using your own time records where available, so the comparison is fair.
Make options comparable
Use the same time horizon, the same scope and the same assumptions about student numbers for every option. Where a vendor quotes a feature as planned, note that it is not yet available rather than assuming it will arrive at no cost. See build vs buy for how in-house development compares.
Frequently asked questions
Over how many years should TCO be calculated?
Commonly three to five years, which roughly matches typical contract terms and the time before a system is reviewed again.
What is the most commonly underestimated cost?
Internal staff time for data preparation, testing, training and ongoing administration.
Where can I see Acadlytic pricing?
See pricing. Acadlytic will be priced per institution, with a written proposal based on scope and scale.