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 (typically 20–30% of the cloud bill), 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 services, with written response targets, $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. Ongoing compliance work is PlatOps Security & Compliance Support, from $1,500/month.
How does this scale with growth?
Hiring a new IT person takes 3-6 months and costs $30K-$50K. We scale by adding services or scope. 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
Managed Services
Tools & Technology
In-House Team
Managed Services
Risk & Incident Costs
In-House Team
Managed Services
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
6-9 Month Payback
Time to recover implementation and transition costs
Most clients break even in first year, then realize ongoing savings
$4.5M Breach Avoided
Average cost of a data breach in 2024
Proactive security reduces likelihood by 70-80%
1-Hour Critical Response, 24/7
A person on critical incidents around the clock, not just in business hours
Routine requests within 4 business 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 CalculatorHidden 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 departure30% annual turnover in tech roles
Tool Sprawl & Licenses
$40K-$100K annuallyAverage company has 8-12 overlapping security tools
Training & Certifications
$15K-$30K per personRequired to stay current with threats
Overtime & Emergency Contractors
$25K-$75K annuallyAfter-hours incidents, vacation coverage
Failed Compliance Audits
$50K-$200K per failureRemediation, re-audits, potential fines
Unplanned Downtime
$5K-$10K per hourAverage 20 hours/year for mid-size companies
Transparent Pricing Structure
Four managed services, each with its own scope and fee. Larger estates get a custom quote.
Managed Business Email
$49/user/mo
15-user minimum ($735/mo)
Businesses with no in-house IT
What's Included
- 24/7 help desk for email problems
- Microsoft 365 or Google Workspace administration
- Email protection, main-domain DMARC and backups
- Critical incidents answered within 1 hour, 24/7
Not Included
- Microsoft or Google licences
- Devices, printers and office networks
Security & Compliance Support
From $1,500/mo
Organizations of 10-50 staff
Regulated small businesses
What's Included
- Named control and evidence register
- Monthly control and evidence checks
- Quarterly access and policy reviews
- One security questionnaire a month (up to 100 questions)
Not Included
- Independent audits and compliance software
- Dedicated 24/7 detection and response
Managed Cloud Operations
From $3,000/mo
One cloud, up to five server or database services
Businesses running their own systems in the cloud
What's Included
- 24/7 monitoring and incident triage
- Critical incidents answered within 1 hour, 24/7
- Patching, backups and agreed restore tests
- Monthly health and cost review
Not Included
- Your cloud bill and paid tools
- Migrations and major rebuilds
Managed DevOps
From $5,000/mo
One product, up to three services or pipelines
Software companies without a platform team
What's Included
- Everything in Managed Cloud Operations for the covered estate
- CI/CD pipelines, rollback and infrastructure as code
- Platform maintenance
- Critical incidents answered within 1 hour, 24/7
Not Included
- Application features and code defects
- Cloud, paid tools and runner usage
Annual Commitment Discounts
10%
12-month contract
15%
24-month contract
20%
36-month contract
Ongoing compliance work is Security & Compliance Support, from $1,500/mo. See the pricing page for every plan inclusion, add-on and SLA.
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 a larger scope or a custom quote.
Security Requirements
What compliance frameworks apply?
Compliance work usually costs extra. At PlatOps it is Security & Compliance Support, from $1,500/month.
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
Written Service Commitments
99.5% or 99.9% uptime by plan, custom on Enterprise, with P1 response times in writing
Value: Response and uptime commitments agreed in your contract before you sign
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 written response and uptime targets and professional liability insurance.
Request detailed SLA documentationOther Buyer's Guides
Most decisions involve more than one leader. Share the guide that fits each of them, or start with the evaluation checklist for any managed provider.
The CISO's Guide
Security Operations & Risk Reduction
Threat detection, incident response, compliance management, and security program maturity. For security leaders evaluating managed security partners.
Read GuideThe CTO's Guide
Technical Evaluation & Architecture
Deep dive into security architecture, technology stack, team integration, and technical evaluation criteria. For technical leaders evaluating managed services partners.
Read GuideThe Operations Leader's Guide
For VP Operations, COOs, Practice Managers & Owners
Response times, 24/7 coverage, day-to-day communication, onboarding, and exit terms. For whoever runs operations when there is no IT department.
Read GuideReady to compare specifics? See plans, SLAs and pricing or compare in-house, freelance, MSP and PlatOps.
Free 30-minute call
See What IT Should Cost You
Book a free 30-minute call. Share what you spend on IT, cloud and staff today, and we'll show you what PlatOps would cost by comparison.
No commitment. Video call or phone, whichever you prefer. Run by senior engineers, serving clients since 2014.
What you leave the call with
- A side-by-side with hiring in-house
- Which costs are fixed and which vary
- A senior engineer, not a salesperson
Prefer it in writing? Request a written review