Record usage and effort
The work assignment is to calculate licence, API, integration, operations and human review together. Define purpose, owner and permitted operating boundary before the first test.
The domain review baseline covers usage, people time, infrastructure, governance, support and switching cost. Assumptions and missing information remain visible in the result.
Measure costs against the workflow
- Define the workflow, period and expected usage covered by the calculation.
- Record licence, API, integration and infrastructure alongside human review time.
- Add governance, ongoing support and a possible switch as separate cost items.
- Compare alternatives under identical assumptions and show the effect of uncertain values.
Separate assumptions from measured results
A traceable calculation names the period, usage, people time and infrastructure alongside governance, support and switching effort. Each line shows whether it was measured, evidenced or estimated.
Avoid: comparing only monthly list price. A comparison based only on monthly list price leaves integration and operating effort unresolved and cannot reliably identify the less expensive overall solution.
Decision matrix
| Decision point | Proceed when | Stop when |
|---|---|---|
| Cost assumptions | Documented: usage, people time, infrastructure, governance, support and switching cost. | Scope, data or accountability remains unresolved. |
| Measurement baseline | A traceable calculation names the period, usage, people time and infrastructure alongside governance, support and switching effort. Each line shows whether it was measured, evidenced or estimated. | There is only an unevaluated demo without acceptance evidence. |
| Budget decision | Owner, approval, fallback and next review date are defined. | Avoid: comparing only monthly list price. A comparison based only on monthly list price leaves integration and operating effort unresolved and cannot reliably identify the less expensive overall solution. |
Keep it verifiable
Primary sources
- FinOps Foundation: Unit economicsSource checked:
