TCO calculator
Total Cost of Ownership
Clouda's TCO Calculator
Discover how Clouda can help your business reduce high platform costs and increase revenue based on your TCO numbers.
What is TCO Calculator?
A TCO calculator is a useful tool for estimating the total cost of ownership (TCO) associated with a product or service. TCO encompasses not just the initial purchase price but also ongoing expenses for operation, maintenance, and support. By using a TCO calculator, individuals can compare various options and make well-informed decisions.
What factors are considered in assessing Total Cost of Ownership (TCO)?
Enterprises use Total Cost of Ownership (TCO) to evaluate both direct and indirect costs associated with a particular purchase or platform. Our TCO assessments take a comprehensive approach to examine all costs, including initial procurement expenses and ongoing operational costs involved in maintaining an e-commerce platform. Specifically, the research design and analysis of this calculator are influenced by three key TCO drivers:
- Platform Fees & E-commerce Stack Costs
- Operational & Support Costs
- Implementation & Setup Costs
Platforming and Licensing fees
- Fixed monthly/annual platform subscription
- Variable transaction fee as a percentage of transaction
- Variable fee charged based on the number of storefronts, price books, or as a percentage of GMV
Applications, plugins, and integrations
- Email marketing services
- Order management
- Search and SEO
- Automation tools
- Loyalty programs
- Product information management
Platform fees and support costs
- Platform maintenance and technical support
- Dedicated account management
- Third-party platform support agencies
Payment and processing fees
- Payment processing fees for debit, credit
Platform enhancements and applications
- Development team overhead
- Digital marketing and product manager resources as related to planning the evolution of the platform
Production and non-production platform management
- DevOps team overhead (direct e-commerce)
- Indirect IT FTE overhead (e.g., indirect e-commerce support)
Infrastructure costs
- IT team overhead costs (e.g., on-premise hosting, security)
- Third-party vendor costs (e.g., cloud vendor)
Platform ops and administration
- Systems administrator overhead
- E-commerce operations team overhead
- Product information manager overhead
- Product team overhead
- Digital marketing team overhead
- Campaign management, SMS, retail
Front-end design
- Digital marketing and branding for UX/UI design
- Third-party vendors that help with front-end design
Front-end implementation
- Front-end engineering costs
- Back-end engineering costs (user-facing components)
- Third-party vendors for implementation
Back-end implementation
- Back-end engineering costs
- IT team overhead
- Project management overhead
- Testing and QA support
Data migration
- Cost of data migration
- Loss of revenue due to platform downtime (i.e., in the case of re-platforming)
- Other quantifiable business impacts or disruptions
System and setup
- Platform one-time implementation fee
Compare TCO
Please follow the below steps to compare your TCO:
Step 01: Scroll to the first section of this page and download the TCO calculator.
Step 02: Fill out the checklist you downloaded and generate the total platform costs and operational costs.
Step 03: Return to this page, fill out the form below with the necessary information, and submit it to receive your report via email.
Want to Conduct a Custom TCO Evaluation? Contact us today!
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