The model calculations above do not take into account the on-going costs of maintaining a solution once it is built.
Support and maintenance
Once the solution is complete, resources will still be required for regular support and maintenance. For example: fixing bugs, applying mandatory patches, updating third party dependencies, and changing product taxonomy mappings. The requirement will vary with number of users, asset classes and frequency of use but could be up to 3 FTEs.
In contrast, maintenance updates and level 3 support are included with the Mosaic licence fee.
The projected build effort has assumed matching a snapshot of the current Mosaic functionality. In practice Mosaic’s functionality continues to evolve rapidly. Building a true equivalent would require sustained investment to keep pace with Mosaic’s future product roadmap.
Mosaic has a team of more than 50 engineers, data scientists and client services analysts focused on improving and developing the product, with more customer value delivered in each release.
Third Party Licences
An equivalent solution is likely to rely on third party technologies that incur their own licence fees. For example, a time series database (e.g. $100k/y for KDB), and a visualization tool (e.g. $50k/y for Tableau).
In contrast, all costs for the software Mosaic relies upon are covered in the Mosaic licence fee (hardware costs associated with hosting are charged separately).
Total Cost of Ownership
These additional operating costs that are associated with running an equivalent in-house solution have a significant impact on total cost of ownership.
As before, the actual cost varies significantly depending upon the cost of the resources used. For illustration, suppose that 5 FTEs were dedicated to support and ongoing development, and there were associated technology licencing costs of $200k per year: the annual support costs and third-party license fees might vary from $450k offshore up to $1.5M onshore. In all cases these would comfortably exceed the cost of a Mosaic licence fee.