Software resolution: Costs and ROI calculation

March 2026

In today's rapidly changing digital landscape, many companies face the challenge of modernizing outdated software systems.

The decision to replace old software is often associated with concerns about costs and effort.

But the preservation of outdated technology can become much more expensive in the long term.

In this article we will explain how you can realistically estimate the cost and return on investment (ROI) of a software release.

The hidden costs of outdated software

In today's rapidly changing digital landscape, many companies face the challenge of modernizing outdated software systems.

For Software resolution: Costs and ROI calculation, Our Development Process outlines how we support rollout and delivery.

At first glance, it may seem more cost-effective to adhere to proven systems.

But old systems, also called legacy systems, bring a number of hidden costs that are often overlooked:

• High maintenance costs: Over time, it becomes more difficult and more expensive to find qualified developers for outdated technologies. Maintenance and adaptation of these systems becomes a major cost factor.
• Safety risks: Old software is often no longer supplied with security updates. This makes it an easy target for cyber attacks, which can lead to data loss, operational interruptions and reputation damage.
• Slower efficiency: Legacy systems are often slow, cumbersome in operation and not compatible with modern applications. This leads to inefficient workflows and frustrated employees.
• Short scalability: Old systems can often not keep pace with your company's growth. They are not flexible enough to meet new business needs or migrate to the cloud.
• Innovation brake: Old technology can block the introduction of new, new business models and digital services. Your company loses market strength.

How to calculate the ROI of a software release?

The calculation of the ROI is a decisive step to evaluate the cost-effectiveness of a software release. The basic formula is:

ROI (%) = (profit from investment – cost of investment) / cost of investment * 100

To calculate the ROI, you need to quantify both the costs and the expected benefits of the new software.

Cost of investment

Short: The cost of a software release goes beyond the pure license fees.

The cost of a software release goes beyond the pure license fees. Consider the following items in your calculation:

Cost factor	Description
Software licenses	Unique or recurring costs for using the new software.
Rollout	Costs for installing, configuring and adapting the software to your business processes.
Data migration	Time to transfer data from the old system to the new application.
Training	Costs for training your employees in handling the new software.

References and further reading

The following separate references complement the topics in this article:

• Bitkom – German digital industry association.
• German Federal Office for Information Security (BSI).
• European Commission – Digital strategy.
• MDN Web Docs (Mozilla)
• W3C – World Wide Web Consortium.

"Cloud-native only pays off when operations, security, and cost model match the architecture—otherwise you ship complexity faster."

— Björn Groenewold, Managing Director, Groenewold IT Solutions

Frequently Asked Questions (FAQ)

What is this article about: “Software resolution: Costs and ROI calculation”?

Here we cover Software resolution. Costs and ROI calculation — focused on architecture, process, and business outcomes. In short.

In today's rapidly changing digital landscape, many companies face the challenge of modernizing outdated software systems.

Who benefits most from the content described here?

Typical readers are business and IT leaders in Software development who want to secure quality, security, and ease of upkeep over the long term.

How does this topic fit into an IT or digital strategy?

In a digital strategy, prioritize stable core processes first, then extensions. See also professional software development and consulting.

For multi-system landscapes, IT consulting and architecture helps align vendors and internal teams.

What are sensible next steps if we need support?

If you need support with design, delivery, or modernization: schedule an appointment or outline your project via contact.