Digital Operations: A Strategic Choice

Analyze the true cost of outsourcing your core software vs. owning it as a permanent business asset. Enter your numbers below to model your 5-year Total Cost of Ownership (TCO).

Your Business Vitals

Enter your current or projected figures to generate a personalized analysis.

Model 1: Vendor Outsourcing

This represents the typical SaaS model (e.g., Toast, Shopify, Airbnb) where you pay recurring fees for software and hardware access.

Annual Platform Fees

Est. Annual Processing Fees (2.9% + 30¢)


Total Annual Operating Cost

Strategic Implications:

  • No Equity: Payments build zero long-term value.
  • Data Siloed: Customer data is owned and controlled by the vendor.
  • Vendor Lock-In: High switching costs due to proprietary systems.
  • Unpredictable Costs: Subject to price increases and feature up-charges.

Model 2: Strategic Ownership

This represents building your own system on utility-grade infrastructure like Cloudflare and Stripe.

Annual Platform Fees (Cloudflare)

$60

Est. Annual Processing Fees (2.7% + 5¢)


Total Annual Operating Cost

Strategic Implications:

  • Builds Equity: Creates a tangible, valuable asset on your balance sheet.
  • Data Ownership: You own and control 100% of your customer data.
  • Full Flexibility: Adapt and evolve the system to your exact needs.
  • Drastically Lower TCO: Minimal operating costs post-development.

5-Year TCO Projection

This chart visualizes the long-term financial impact. We've included a one-time development investment for the Ownership model. Notice how the initial outlay is quickly offset by massive operational savings, leading to a significantly lower Total Cost of Ownership.