Microsoft 365 or Open Source? How to Work Out the Real Costs
Microsoft 365 or Open Source? How to Work Out the Real Costs
Lots of small businesses pay for their office software every month without really knowing what it all adds up to. That's totally normal: licences tick along in the background, add-ons pile up, and at some point it's just "the way it is". Still, a calm look at the numbers is worth it. It often turns out that open source is a really good and affordable alternative.
What belongs in your calculation
With Microsoft 365 and similar subscriptions, you pay per person per month. On top of that, there are often items you don't think of straight away:
- Licences per person – the price depends on the plan
- Extra storage for large amounts of data
- Add-on features like telephony or advanced security
- Backup – often not fully included in cloud subscriptions
- Price changes over the years
The best approach: look at your last twelve invoices. Then you have a real number instead of a guess.
What open source costs
Open-source software like Nextcloud (files, calendar, contacts), Element (chat and video calls), ONLYOFFICE or Collabora (office documents) and Vaultwarden (passwords) comes without licence fees. You still pay for some things, though:
- Hosting – a server in a data centre or a small device in your office
- Setup – a one-off cost, depending on how much data needs to move
- Support – updates, backups, help with questions
The big difference: these costs usually don't depend on how many people use the software. Whether your team has five or fifteen people often makes only a small difference to the server.
A fair side-by-side
| Item | Subscription (e.g. Microsoft 365) | Open source (self-run or managed) |
|---|---|---|
| Licences | per person per month | none |
| Hosting | included | your own server, monthly |
| Setup | low | one-off |
| Support | mostly yourself | yourself or as a service |
| Switching later | more effort | data in open formats |
To be honest: in the first year, open source can cost as much as the subscription because of the setup. From the second year on, the one-off part disappears, and that's often where it gets noticeably cheaper.
The benefits beyond price
Money isn't everything. Many people who switch value these points most:
- Control over your own data – you know which server it's on
- Independence – you're not tied to a single provider
- Open formats – you can take your files with you any time
- Active community – thousands of developers work on these projects
How to go about it
- Take stock: Which programs do you actually use every day?
- Collect the costs: Add up all invoices for one year.
- Look at alternatives: Find an open-source option for each program – there's an overview under Alternatives.
- Test small: Start with one area, for example your files.
- Decide: After a few weeks you'll know whether it fits.
Typical costs that are easy to overlook
Besides licences, there are a few items that never show up on an invoice but still cost time or money:
- Managing accounts: Who's joining, who's leaving? Every change takes a few clicks and sometimes a new licence.
- Training: New features arrive regularly, and the team wants to know how they work.
- Unused licences: In many businesses, subscriptions keep running for people who hardly use the program any more.
- Extra tools: Backup, archiving or a password manager are often paid for separately.
Some of these exist with open source too, of course. The difference is that you can plan them yourself and aren't tied to a licensing model.
A do-it-yourself example calculation
Grab a sheet of paper or a spreadsheet and fill in:
| Line | What you enter |
|---|---|
| A | Licence cost per person per month × number of people × 12 |
| B | Add-ons and storage per year |
| C | Backup and other tools per year |
| D | Total of A + B + C |
Then get a quote for hosting and support for the open-source option. It's best to spread the one-off setup over three years. That way you can see at a glance when a switch pays off – and whether it's worth it for you at all.
Who benefits most from switching
- Growing teams: Without per-person licences, costs stay more stable.
- Businesses with confidential data: Law firms and practices appreciate deciding where their data is stored.
- Anyone who wants to stay flexible: Open formats make later switches easy.
Conclusion
Switching to open source doesn't have to be expensive or complicated. With an honest calculation, you'll quickly see whether it's worth it for you. You can find my packages and prices under Pricing.
If you'd like to give it a try, I'm happy to help – just drop me a line.