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Costs & ROI

Total cost of ownership of software over three years

The total cost of ownership, often called TCO, is the sum of everything a piece of software makes you spend over its useful life, not just the subscription shown in the price list. For condominium software a three-year horizon is the right window: long enough to absorb the one-off setup and migration costs, short enough to stay predictable. Reasoning about TCO over three years avoids the most common mistake, that is choosing the lowest subscription without seeing the entry and exit costs around it. This guide lists the items to add up and shows how to compare two solutions over the same period, so the apparent price does not hide the real cost.

Compared

CriterionList price onlyTotal cost over three years
What it includesThe advertised annual subscriptionSubscription, setup, migration, training, modules and exit
HorizonOne month or one yearThirty-six months, the whole useful window
One-off costsIgnoredSpread over the period and made visible
ComparabilityMisleading across different solutionsFair, over the same horizon
Surprise riskHigh, costs surface laterLow, items are foreseen in advance

Why three years and not one month

A monthly comparison makes two tools with very different cost profiles look almost identical. One-off costs, such as migrating the accounting history or the training hours, all weigh at the start and then disappear. If you look at them only in the first month, they distort the judgement; if you spread them over too long a horizon, you undervalue the initial effort.

Three years is a reasonable compromise for firm software, which once chosen tends to stay in use for a long time. Over this window setup costs spread realistically and recurring subscriptions show their true weight, allowing an honest comparison between solutions with different price structures.

The items of the entry cost

The entry cost is everything you pay to start using the software, on top of the subscription. Data migration from the history, often the heaviest item, includes importing records, accounting balances and documents, and it should be assessed both in money and in internal hours spent checking that the data arrived correctly.

  • Migration of owner, unit and supplier records.
  • Import of accounting balances and the transaction history.
  • Staff training hours in the first months of use.
  • Any paid initial activation or configuration.
  • The owner's time spent setting up buildings and charts of accounts.

Recurring subscriptions and modules

The recurring subscription is the most visible part of the TCO, but it must be read for what it actually includes. Some base plans cover the essentials and charge separately for the modules a firm really uses, such as document signing, mass communications or advanced accounting. Adding the necessary modules to the base subscription is the only way to obtain the real recurring cost.

The number of managed buildings or users also matters, because many models scale on these parameters. In the three-year calculation it is best to project the expected growth of the portfolio, so you do not end up with a cost that rises beyond forecasts just as the firm expands.

The exit cost, often forgotten

The TCO does not end when you stop paying. Changing software carries an exit cost: exporting the data in a reusable format, the time to verify its completeness and any period of parallel use during the switch. A vendor that makes export easy and free lowers the exit cost and reduces the risk of getting locked in.

Before signing it is worth asking in what format the data can be extracted and whether the operation has a cost. Portability is a cost factor in every respect, even if it shows up only at the end of the relationship, and it should be weighed in the comparison between solutions just as much as the initial subscription.

Putting it all in one comparison

Once the items are gathered, the comparison becomes simple: you add entry, subscriptions over thirty-six months, modules and exit for each solution, and divide by the three years to get a comparable annual cost. At that point the software with the lowest subscription may, or may not, turn out to be the most convenient over the whole period.

To build this comparison concretely it helps to read which features are included in each AmministraPro plan on the /prezzi page and to check on /funzioni which activities the software covers without extra modules, so you can fill every TCO item with real data instead of guesses.

Frequently asked questions

What is the difference between price and total cost of ownership?

The price is the advertised subscription; the total cost of ownership is everything the software makes you spend over time, including setup, migration, training, modules and exit. Two tools with the same list price can have very different total costs, and it is the latter that matters for the decision.

Is data migration always paid?

It depends on the vendor and the complexity of the history. Some include basic import in the price, others quote it separately. Either way it has an internal cost in hours, because someone must check that records, balances and documents arrived correctly before using the software in production.

Why consider the exit cost if I do not intend to switch?

Because the ability to leave without penalties or lock-in is a guarantee of freedom that protects the firm. A low exit cost, with simple and free data export, reduces the risk of being tied to a solution that over time might no longer fit.

Does a three-year TCO apply to a small firm too?

Yes, and if anything it is even more useful, because one-off setup costs weigh more on a modest subscription. Over three years a small firm sees clearly whether a low price hides high entry costs or whether the convenience holds over the whole period.

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