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CFO's Financial Guide

The CFO's Guide to Security & Infrastructure Investment

Data-driven financial analysis of managed IT services. Total cost of ownership, ROI metrics, budget predictability, and risk mitigation for informed investment decisions.

Key Questions CFOs Ask

Financial decision-makers need concrete data. Here are answers to the most common questions.

What is the true total cost of ownership?

In-house IT teams cost $555K-$847K annually (4-person team) vs. $180K-$360K for managed services. Hidden costs like turnover (30% average), training ($15K-$30K/person), and tool sprawl add 40-60% to stated budgets.

What ROI can we expect and when?

Most clients see positive ROI within 6-9 months through reduced incident response costs (60% reduction), cloud cost optimization (25% savings), and eliminated recruitment/training expenses. Average annual savings: $200K-$500K.

How predictable are the expenses?

Fixed monthly fees replace variable costs. No surprise overtime, emergency contractor rates, or unplanned tool purchases. 95% of clients report budget variance under 5% vs. 20-40% with in-house teams.

What is our financial risk exposure?

Average data breach costs $4.5M. Security incidents cost $1.4M on average. Our SLA-backed services with $2M+ liability coverage and SOC 2 Type II compliance significantly reduce financial exposure and insurance premiums.

What about compliance costs?

Compliance audit prep costs $50K-$200K annually in-house. Failed audits average $180K in remediation. We include compliance support, reducing audit prep by 70% and maintaining continuous readiness.

How does this scale with growth?

Hiring a new IT person takes 3-6 months and costs $30K-$50K. We scale instantly with flexible tiers. Growing from 50 to 200 employees adds $6K-$12K/month vs. hiring 2-3 FTEs at $250K-$400K+ annually.

Total Cost of Ownership Analysis

Complete financial picture including hidden costs often missed in initial budgets

Personnel Costs

In-House Team

IT Manager$120K-$180K
System Admin$80K-$120K
Security Specialist$100K-$150K
Help Desk (2 FTEs)$100K-$140K
Benefits & Taxes (35%)$140K-$206K
Recruitment & Training$30K-$60K
Turnover Cost (30% annual)$120K-$180K
Subtotal$690K-$1,036K

Managed Services

Managed Services (100 users)$180K-$360K
Included: Full team$0
Included: Benefits$0
Included: Training$0
Included: Recruitment$0
Included: Turnover risk$0
Subtotal$180K-$360K

Tools & Technology

In-House Team

Security Tools (SIEM, EDR, etc.)$40K-$80K
Monitoring & Alerting$15K-$30K
Backup & DR$20K-$40K
Compliance Tools$15K-$35K
Help Desk Software$10K-$20K
Subtotal$100K-$205K

Managed Services

Enterprise security stackIncluded
24/7 SOC monitoringIncluded
Automated backup & DRIncluded
Compliance platformIncluded
Ticketing & supportIncluded
Subtotal$0 additional

Risk & Incident Costs

In-House Team

Breach risk (probability-adjusted)$45K-$90K
Downtime costs (avg 20hr/year)$30K-$100K
Compliance gaps/fines$20K-$100K
Emergency contractor rates$25K-$75K
Subtotal$120K-$365K

Managed Services

SLA-backed uptime guarantee$0
$2M+ liability coverageIncluded
Compliance continuous monitoringIncluded
No emergency contractor costs$0
Subtotal$10K-$30K risk premium

In-House Total Cost

$910K-$1,606K per year

Managed Services Total

$190K-$390K per year

Annual Savings

$520K-$1,216K per year (57-76% savings)

* Costs based on industry benchmarks and PlatOps client data. Actual savings vary by organization size and complexity.

ROI Analysis & Key Metrics

Financial impact metrics from our client base

40-60% Cost Savings

Average reduction in total IT spend vs. in-house team

Includes all personnel, tools, training, and risk costs

6-9 Month Payback

Time to recover implementation and transition costs

Most clients break even in first year, then realize ongoing savings

25% Cloud Cost Reduction

Average savings from infrastructure optimization

Right-sizing, reserved instances, waste elimination

$4.5M Breach Avoided

Average cost of a data breach in 2024

Proactive security reduces likelihood by 70-80%

85% Faster Incident Response

24/7 SOC vs. business-hours in-house team

Average MTTR: 15 minutes vs. 2+ hours

70% Compliance Cost Reduction

Audit prep, documentation, continuous monitoring

From $50K-$200K to $15K-$60K annually

Calculate Your Specific ROI

Use our interactive calculator to model your organization's costs and potential savings

Launch ROI Calculator

Hidden Costs of In-House IT

These costs are often excluded from initial budgets but hit P&L throughout the year

In-House Hidden Costs

Turnover & Replacement

$120K-$180K per departure

30% annual turnover in tech roles

Tool Sprawl & Licenses

$40K-$100K annually

Average company has 8-12 overlapping security tools

Training & Certifications

$15K-$30K per person

Required to stay current with threats

Overtime & Emergency Contractors

$25K-$75K annually

After-hours incidents, vacation coverage

Failed Compliance Audits

$50K-$200K per failure

Remediation, re-audits, potential fines

Unplanned Downtime

$5K-$10K per hour

Average 20 hours/year for mid-size companies

Total Hidden Costs$250K-$575K+ annually

Transparent Pricing Structure

Three tiers designed for different organizational sizes and requirements

Essential

$3,500-$7,500/mo

25-75 users

Startups, small businesses

What's Included

  • 24/7 monitoring & alerting
  • Help desk support (8x5)
  • Basic security (EDR, email security)
  • Cloud infrastructure management
  • Monthly reporting
  • Slack/Teams integration

Not Included

  • SOC 2 / ISO 27001 support
  • 24/7 help desk
  • Custom integrations
  • Dedicated account manager
Most Popular

Professional

$7,500-$15,000/mo

75-200 users

Growing companies, compliance needs

What's Included

  • Everything in Essential
  • 24/7 help desk support
  • Advanced security (SIEM, SOC)
  • Compliance support (SOC 2, ISO 27001)
  • Quarterly business reviews
  • Dedicated account manager
  • Custom runbooks

Not Included

  • White-glove onboarding
  • Custom SLAs
  • FedRAMP support

Enterprise

$15,000-$50,000+/mo

200+ users

Large orgs, complex compliance

What's Included

  • Everything in Professional
  • White-glove onboarding
  • Custom SLAs & uptime guarantees
  • Advanced compliance (FedRAMP, PCI DSS)
  • Executive reporting & BI dashboards
  • Dedicated security engineer
  • Embedded team option

Annual Commitment Discounts

10%

12-month contract

15%

24-month contract

20%

36-month contract

Budget Planning Factors

Key variables that impact pricing and help you budget accurately

User Count

How many employees need support?

Primary pricing driver. Most vendors charge per user/endpoint.

Infrastructure Complexity

How many systems, clouds, applications?

More complex environments need higher tiers or custom pricing.

Security Requirements

What compliance frameworks apply?

SOC 2, ISO 27001, FedRAMP add $2K-$10K/month depending on scope.

Support Coverage

Business hours or 24/7?

24/7 help desk adds 30-50% to base cost.

SLA Requirements

What uptime guarantees do you need?

Custom SLAs (99.95%+) add premium pricing.

Integration Needs

How many custom integrations?

Standard integrations included; custom work billed separately.

Risk Mitigation & Financial Protection

How we protect your investment and reduce financial exposure

Professional Liability Insurance

$2M+ E&O and cyber liability coverage included

Value: Protects against provider errors and security incidents

SLA-Backed Guarantees

99.9% uptime with financial penalties for non-compliance

Value: Service credits = 10-25% of monthly fees for missed SLAs

SOC 2 Type II Certification

Annual third-party audits of security controls

Value: Reduces your compliance burden and insurance premiums

ISO 27001 Certified Processes

International standard for information security

Value: Demonstrates systematic risk management approach

Business Continuity Planning

Documented DR/BCP with quarterly testing

Value: Ensures service continuity even in provider disruption

Annual Security Audits

Penetration testing and vulnerability assessments

Value: Independent validation of security posture

Financial Security Guarantee

Every engagement includes SLA-backed guarantees, professional liability insurance, and financial penalties for service failures. Your investment is protected.

Request detailed SLA documentation

Ready to Build Your Business Case?

Get a customized ROI analysis and cost comparison for your organization. Most CFOs find the data compelling enough to move forward within 30 days.

No credit card required. Detailed cost analysis delivered within 48 hours.

Limited Availability

Get a Free Security & Infrastructure Assessment

Understand your current security posture, identify critical risks, and get a prioritized roadmap for improvement.

What you'll receive

Executive summary with risk prioritization
Detailed technical findings report
30-day actionable remediation roadmap
Benchmark against industry standards

No commitment required. Assessment takes 48 hours. Report is yours to keep.

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