March 2, 20267 min read
Measuring Platform TCO the CFO Will Actually Believe
TCO is a leadership artifact, not a spreadsheet. Build one your CFO will quote back to you.
Code theme
Why most TCO models fail
Most TCO decks include licenses, hosting, and headcount — then stop. The CFO's team adds a 30% 'hidden cost' buffer and the number stops being useful . A defensible model surfaces those hidden costs explicitly.
The six buckets
- Licenses & subscriptions (visible)
- Infrastructure & delivery (visible)
- In-house engineering & product (visible)
- Agency & vendor delivery (semi-visible)
- Author time — the largest hidden cost (invisible)
- Opportunity cost of slow releases (invisible)
The last two typically account for 40–60% of true TCO and are almost never in the deck.
References
- [1]If your TCO number is challenged with 'add a buffer', you are being told, politely, that the model is not trusted.
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