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Compare software quotes on the same cost basis

Two worked example quotes connect one-off items with ongoing operating costs.

Daniel Hartmann2 min read
Blue and white software box with a gear symbol on a circular cost disc with coin stacks.

Define the shared deliverable first

Describe the same workflow, agreed tests, setup and technical handover for both quotes. GOV.UK recommends considering costs and the product lifecycle alongside required capabilities. Confirm which items are included, separately priced or unresolved. Missing information is neither a zero price nor proof of a surcharge.

Example: an internal approval workflow

Both quotes and all amounts are entirely fictional, not market prices. All amounts are EUR before tax. Identical deliverables and billing periods are assumed. The ongoing packages cover the same hosting and maintenance in this example at fixed monthly amounts. The additional items in A are explicitly priced, not inferred from a gap in the quote.

Item

Quote A

Quote B

Implementation and agreed tests

16,000 EUR

18,000 EUR, including setup and handover

Setup

500 EUR extra

Included in implementation price

Technical handover and documentation

1,500 EUR extra

Included in implementation price

Comparable one-off costs

18,000 EUR

18,000 EUR

Ongoing package per month

200 EUR

250 EUR

Ongoing package for 12 months

2,400 EUR

3,000 EUR

Comparison total including 12 months of operation

20,400 EUR

21,000 EUR

A’s one-off total is 16000 + 500 + 1500 = 18000. The comparison totals are 18000 + 12 × 200 = 20400 and 18000 + 12 × 250 = 21000. Items included in B are not added again. The difference of 600 EUR applies only to these assumptions; it does not establish a quality difference.

Add unresolved costs and boundaries

The table is a limited calculation, not a full lifecycle cost model. Add internal staff effort, required licences, data migration where needed and later switching costs. Avoid double counting work already included. Unknown amounts should remain visibly unresolved.

Check service limits, usage volume, included maintenance and when billing starts. GOV.UK explains that usage-based cloud costs can fluctuate; a flat monthly amount cannot simply be applied to other quotes. Get open assumptions answered, then compare cost, business suitability and available evidence together.

Sources

Written by

  • Daniel HartmannEditor for Technology and BusinessDaniel Hartmann writes about technology decisions in companies at ASES. He covers software investments, choosing the right solutions and planning digital projects.

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