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Optimizely TCO Explained: Unpacking Long-Term Costs and ROI

Written by Stephen Gillespie | Apr 10, 2025 7:52:17 AM

Investing in a Digital Experience Platform (DXP) requires a thorough understanding of its Total Cost of Ownership (TCO). The long-term value is the most important metric and far outweighs the initial investment.

This article breaks down the most important elements to consider when assessing long-term costs, ROI, and is intended to help you understand where Optimizely outperforms competitors in delivering measurable business impact.

Understanding Total Cost of Ownership (TCO) in Digital Experience Platforms


TCO goes beyond just licensing fees. If you are looking at the true cost of supporting your CMS/DXP a true assessment should include the following.

Subscription CostsSoftware licensing and platform fees. 

  • It is important to not just consider the initial software licence, but also third-party enhancements.
  • If you are looking at a composable architecture, consider all of the elements of your stack and understand how they are being delivered. Will they all be evident in your new world?
  • Look at the details of the licencing deal. If it contains any start up fees, account for them over an appropriate term, not just in the first year.

Implementation & Development - Initial setup, integrations, and customisation.  

  • Look at how easy the platform is to build with and the potential time it would take to implement. View the time to migrate as an opportunity cost.

    Optimizely often offers the fastest time to value. And our accelerated approach can further minimise time to live, whilst delivering an enterprise-grade solution.
  • One small tip if you are looking at building complex UI or user tools.

    Does your platform support a headless, or hybrid approach? Investments made in tooling can be ported over to any future platform minimising any future migration and decommissioning costs.

    All Optimizely platforms support headless and hybrid delivery. 

Operational & Maintenance Costs  - Ongoing hosting, security, and updates.


Consider the total cost for hosting, including:
  • Production as well as additional environments for Development, staging or test environments.
  • Any provision for front end servers to support your headless components and any edge capability to support content delivery.
  • Are you making any provision for surge capability at any time of the year? Optimizely’s model includes secure hosting on Azure, provided without shocks or capacity issues. 
  • Look in detail at the upgrade cadence. Understand if the platform you require can be free of future upgrades.

    The latest SAAS platforms can help minimise upgrade implications, Optimizely SAAS is no different. If you require a lot of customisation, favour a PAAS platform. Optimizely PAAS has simple upgrade paths. 

User training and adoption  - enabling teams to maximise platform benefits.

Don’t limit yourself to like for like. Look carefully at what other features you can access in a new platform and how that can bring benefit to your teams.

And ensure you don’t leave platform training to the tail end of the migration process. Including your team in the early stages can help ensure that any configurations support your team’s workflows and processes.

Future Scalability & Innovation  

Consider those costs associated with expanding features and capabilities, and ultimately of decommissioning your platform in the future.

How much of your previous investment in UI can be ported into any follow on platform?

These areas will give you an understanding of where you sit with your core platform costs,

 

Many of our clients have found there is sound financial justification to make the shift purely by assessing these costs over a three or four year term. 

The Cost vs. Value Dilemma: Is Optimizely the Best Investment?


1. Lower Long-Term Maintenance Costs


Competitor platforms often require extensive ongoing developer support due to rigid architectures. Optimizely’s capabilities empower marketers and content teams, reducing developer reliance and long-term maintenance expenses.

Explore how your platform can empower your marketing and content teams without developer support, before you make your platform decision.

2. Built for Conversion & Revenue Growth


The Optimizely One  Platform provides unparalleled opportunities to build Personalisation and content accountability into your content marketing endeavours.

Optimizely Experimentation can facilitate A/B and multivariate testing of content or features. This enables you to test and evolve your content presentation and ability to nurture your customers and prospects, confident in the knowledge that you are moving forwards. 

The personalisation tooling, either rule based or AI enhanced, enables you to deliver direct 1 to 1 content and journeys for your site visitors.  

By empowering your team to drive business growth, through AI-driven personalisation and A/B testing, Optimizely empowers organisations to increase conversion rates and customer engagement more effectively within a single platform solution.

3. Faster Time-to-Market = Faster ROI


With modular architecture and seamless integrations, Optimizely accelerates project delivery. Businesses leveraging Optimizely launch faster and benefit from a faster time to value.  

Long, costly implementation cycles, move all the value to the rear of a project and front-load all of the investment. Faster build times enable you to deliver value faster.

Talk to your build partner to structure your DXP migration in a way that ensures you target key areas of business opportunity first, ensuring you reduce cost and improve effectiveness whilst building capability.  

4. True Multi-Site, Multi-Experience Capabilities


Managing multiple brands or global sites?

Optimizely’s unified architecture and business model allow enterprises to scale without the duplicated licence or ongoing costs of maintaining separate solutions for different regions or brands.

5. Security & Compliance Built-In


Optimizely’s editor controls facilitate a workflow to support compliance. Optimizely’s DAM (Digital Asset Management) empowers you to have the same controls over your imagery and other assets.

With the addition of Content Marketing capability, the platform can support management of the entire supply train.

Managing consent and user profiles are features baked into the platform ensuring your organisation can manage compliance with legal obligations.    

6. Actionable Analytics


Customer Profiles and Content Intelligence unified into a single reporting dashboard can empower marketers to make informed choices when refining customer journeys. Data from third party tools can be integrated to further illuminate your insights and deliver enhanced experiences to website visitors.

7. AI Capabilities  


As Marketers strive to understand the opportunities for scaling that AI can bring, Optimizely have ensured AI is at the centre of delivering marketing efficiency and effectiveness.

This includes using AI to:

  • Generate product descriptions, meta tags, and managing images by suggesting alt-tags or cropping images.
  • Create real-time interest profiles for targeting and content ideation, identifying content gaps, or refining content variations.
  • Support search queries
  • Inform multi-arm bandit refinements for personalisation.
  • Define or refine content experiments or suggesting product or content based on profile information and user engagement. 

The Competitive Advantage: Optimizely vs. Sitecore & Other DXPs

When it comes to making the decision, as to which leading DXP is the right fit for your business, ensure you have understood the following factors to be confident you are making the right choice.

Hybrid & Headless CMS


Does your platform support headless or hybrid content delivery? 

Headless UI can safeguard investment in features, keeping them platform agnostic. If you are exploring a fully composable stack, make sure that your content editors get the support they need, effectively creating and editing content. Some PAAS platforms are still unable to support headless content delivery.

A/B & Multivariate Testing.


If your platform is dependent on third party software to support testing and user journey optimisation, beware of limitations. Ensure you have the right level of platform integration to support your aspirations. Experimentation is tightly integrated in the Optimizely Platform.

Scalability


Ensure you have the hosting scalability to cope with your traffic patterns. In either PAAS or SAAS format, Optimizely comes with scalable hosting on Azure.  

If your requirement is for a low level of customisation, a SAAS solution may insulate your organisation from ongoing upgrades.

Note that Adobe Experience Manager (AEM) is only suitable for PAAS delivery.

Personalisation


Investigate the level of personalisation tooling you receive within the platform.

Try to understand where your personalisation journey will take your team - and what that means for your customers. Ensure your platform has extensible solutions that can continue to support you without the need for extensive enhancement.

Total cost of ownership


Working with our clients, we have often explored the total cost of ownership (TCO) they would achieve across a range of DXP platforms.

And we repeatedly find that when considered in its entirety. Optimizely continues to provide the lowest TCO against competitors, SitecoreXP or SiteCore XM Cloud, or AEM.

When considering the speed in which you can realise savings or revenue growth, maps to the speed with which Optimizely be delivered, the time to value is invariably decreased against platforms such as AEM.

Maximising ROI with Optimizely

1. Higher Conversions = Higher Revenue


A 2022 report published by Forrester, and commissioned by Optimizely, found that Companies that leverage Optimizely’s experimentation features can see an average conversion rate uplift of up to 60% over three years. 

And if experimentation is key component of your digital roadmap, we recommend reading our detailed guide on building a test and learn culture. 

2. Reduced IT & Maintenance Costs


With Optimizely, Marketing teams can execute changes without relying on developers, saving thousands annually in IT support costs compared to legacy platforms.

3. Increased Operational Efficiency


The same Forrester report claimed that time savings can be as much as 75% over 3 years, as Optimizely streamlines workflows. Bringing compelling reductions in your content time-to-market.

Conclusion

In our experience, Optimizely offers the best balance of cost vs. value in the DXP market. And this is exemplified by it's leadership position in Gartner's 2025 Magic Quadrant for DXPs.

The long-term benefits of reduced maintenance costs over other DXP’s or complex composable architectures, alongside its revenue-driving capabilities are significant in driving the business case for an Optimizely investment

These factors make it a clear choice over competitors like Sitecore or Adobe Experience Manager.