Total Cost of Ownership (TCO)
What is Total Cost of Ownership (TCO)?
Total Cost of Ownership (TCO) refers to the complete cost of operating a digital solution over its entire lifecycle, not just the software license. It includes direct costs like hosting, integrations, and upgrades, and indirect costs such as training, maintenance, and staff efficiency.
In the context of Xperience by Kentico, TCO represents a key metric for evaluating the long-term financial value of a content management system with built-in digital marketing. Kentico’s unified architecture consolidates content management, digital marketing, personalization, and analytics under one platform , reducing tool sprawl, manual integration, and overall operational cost.
Why does TCO matter in digital experience management?
Most organizations underestimate TCO because they focus only on upfront licensing costs. Hidden costs arise from disconnected systems, multiple vendors, or inefficient workflows.
Kentico’s approach minimizes these hidden costs by offering an all-in-one CMS that combines CMS, marketing automation, CRM integration, DAM, and analytics, eliminating the need for multiple third-party tools.
Key benefits of optimizing TCO:
- Fewer tools and vendors → fewer contracts and less admin overhead.
- Consolidated hosting and upgrades → predictable, lower costs.
- Unified workflows → improved productivity and faster time-to-market.
- SaaS delivery → reduced IT maintenance and infrastructure spend.
How does Xperience by Kentico reduce Total Cost of Ownership?
Kentico’s Power of Consolidation ebook positions the platform as a TCO optimizer.
By unifying content, data, and automation, organizations can see up to 50% lower operational costs compared to maintaining separate systems.
Built-in factors lowering TCO:
- Single license replaces multiple point solutions (CMS, DAM, CRM connectors, analytics).
- Automatic SaaS updates eliminate patching and upgrade expenses.
- Unified UX reduces onboarding and training costs.
- Integrated security removes the need for third-party compliance tools.
- Low-code tools empower marketers to create without relying on IT.
How do companies benefit from lowering TCO with Kentico?
Organizations across industries report measurable cost reductions and efficiency gains after migrating to Xperience by Kentico.
United Federal Credit Union, implemented by SilverTech
- Industry: Banking / Financial Services
- Migrated from Sitecore to Xperience by Kentico, consolidating CMS, personalization, and forms.
- Results: 35% total cost reduction in digital operations and 40% faster editorial workflows.
Bonvenu Bank, implemented by ZAG Interactive
- Industry: Finance
- Eliminated hosting, patching, and upgrade costs through cloud-native architecture.
- Results: 25% lower annual operational costs. Faster content deployment and reduced IT dependency.
Bluebird Care, implemented by Ridgeway
- Industry: Healthcare
- Consolidated 200+ sites into one instance with Xperience by Kentico
- Results: 60% reduction in maintenance costs. 90% faster new-site deployment.
Analogy
Choosing a CMS based only on license cost is like renting an apartment without asking about included utilities and features. The monthly bill is manageable, but the heating, repairs, and other fees quietly drive up the real cost of living.
Frequently Asked Questions.
A Content Hub provides a central place to create, organize, and distribute all content, improving consistency and accelerating delivery across digital channels.
