Published on 10/10/2026
What running your own business IT really costs
A monthly software invoice is easy to see. Time spent on updates, access administration, and troubleshooting tends to disappear into everyday work. This can make self-managed IT look cheaper than a hosted service, or needlessly expensive when someone compares only the server bill. Both views miss important costs.
A useful decision compares the same scope over several years. It includes setup, ongoing operation, recovery, and a possible move away. The calculation below is a worksheet, not a price quote.
Define the comparison first
Do not compare a minimal own system with a fully supported package. Write down equal requirements for both options:
- number of users and expected growth
- required storage and file sizes
- simultaneous editing, mobile use, and external sharing
- required availability and support hours
- backup retention and restore-test frequency
- roles, logs, and integrations
- effort for rollout, training, and data transfer
Only then can a three-year comparison be fair.
An illustrative three-year calculation
This entirely illustrative example assumes eight users, a shared file platform, and 36 months. Rates, hours, and amounts are calculation assumptions, not DevSeal offer prices or measured figures.
| Cost item | Self-managed | Hosted service |
|---|---|---|
| Server and storage | EUR 2,880 | included in subscription |
| Software licenses | EUR 0, open source assumed | included in subscription |
| Initial setup and migration | EUR 4,800 | EUR 2,400 |
| Updates and monitoring | EUR 4,320 | EUR 1,080 |
| Support and user administration | EUR 3,600 | EUR 2,520 |
| Backup storage and checks | EUR 1,440 | EUR 720 |
| Scheduled restore tests | EUR 1,800 | EUR 1,080 |
| Internal coordination time | EUR 2,160 | EUR 1,440 |
| Exit or handover at the end | EUR 1,800 | EUR 2,400 |
| Illustrative total | EUR 22,800 | EUR 11,640 plus subscription |
The hosted column deliberately excludes the subscription so far. Assume it is EUR 24 per user per month in this example: 8 x EUR 24 x 36 months = EUR 6,912. The illustrative total would then be EUR 18,552. The different exit amounts assume that the hosted export needs more reformatting. If your chosen provider offers a clean export, change that assumption. Change the user count, storage, support, or migration effort and the result changes immediately.
Costs that are easy to omit
Internal time: Even when a supplier performs the work, someone must decide requirements, approve users, and answer questions. Apply a realistic internal cost to that time rather than treating it as free.
Updates: An available update is not the same as an installed update. Planning, checking, execution, and a rollback option all take effort. A hosted provider handles more of this work, but your integrations and process changes still need review.
Backup and recovery: Storage alone is not enough. Define what is protected, who checks failures, and how often a separate restore is tested. A restore test takes time but answers a different question from a green backup status.
Support: Separate included hours, response time, and resolution time. "Response on the same day" does not automatically mean a complex fault will be solved that day.
Migration and exit: Data needs to be exported, checked, and imported into a new structure. Include file formats, permissions, shared links, versions, and the period in which two systems run in parallel.
Using the worksheet
Build three versions: expected case, favorable case, and stress case. In the stress case, user numbers, storage, and support demand might be higher than planned. A range is more honest than a single precise figure.
Also work through one concrete disruption. In the illustrative scenario, the file platform might be unavailable for one working day. Record which people would be unable to continue, which alternative work is possible, and what external help would cost. Do not automatically treat that figure as an expected annual loss. The exercise instead reveals whether a more expensive recovery option is worthwhile and which assumptions remain unknown.
For every item, record who delivers it and what supports the assumption. "Updates: EUR 120 per month in supplier quote" can be checked. "Maintenance: probably low" cannot. After six or twelve months, compare the assumptions with real invoices and recorded internal time.
Self-management can be sensible when control, adaptability, and a clean handover matter and operations are properly organized. A hosted service can be the better choice when standard capabilities are enough and internal operating effort should stay low. The right decision is not the one with the lowest server price. It is the one with sustainable total cost and clear responsibility.
Also ask both suppliers or responsible teams to state in writing what their figures exclude. Common gaps include storage growth, work outside agreed hours, additional backup destinations, and support for user mistakes. This compares not only totals but exposure to later charges. Record the operational limits too: acceptable outage, support availability, and cover when the administrator is away. A numerically cheap option may fail those requirements, while a rarely used convenience feature should not force the most expensive solution.
If you want a clear calculation followed by accountable operation, see our fixed-price setup and support under IT infrastructure.