Fractional CTO or a CIO?
A CTO builds what the company sells: the product, its architecture and the engineering team. A CIO runs what the company runs on: internal systems, IT, data and suppliers. A fractional CIO is priced as a fractional CTO, £6,133 to £10,733 a month at two days a week, because no separate band is published. Product companies need the CTO first; most others need the CIO.
Below is what each one actually owns, what they cost on the same basis, how each one fails, and when to pick the other one.
| A fractional CTO | A CIO | |
|---|---|---|
| Who owns the outcome | The product's architecture, and what it will cost to change | Internal systems: finance, HR, CRM and how they connect |
| Commitment | One to three days a week, flexing with the work, no end date assumed | One to three days a week when fractional, on the same terms as a CTO |
| How it is priced | £800 to £1,400 a day | No separate band is published here. A fractional CIO is priced as a fractional CTO, £800 to £1,400 a day, with lighter head of IT briefs lower in that band. |
| Typical monthly cost | £6,133 to £10,733 a month at two days a week | £6,133 to £10,733 a month at two days a week, priced as a fractional CTO |
| How it fails | Being hired as a CTO by a company with no product to build, where the real problem is that the systems the business runs on are a tangle of subscriptions nobody owns. | Being hired as a CIO by a software company whose product architecture is the constraint, so the internal systems are tidied while the platform customers pay for stays fragile. |
| Pick it when | The company sells software and the product is the technology problem | The company does not sell software, and its systems, IT and suppliers are the technology problem |
What a CIO actually is
A chief information officer runs the technology the company runs on: internal systems, IT, data, security operations and the suppliers behind them. A CTO owns the technology the company sells.
What each one owns
| A fractional CTO | A CIO |
|---|---|
| The product's architecture, and what it will cost to change | Internal systems: finance, HR, CRM and how they connect |
| The engineering team, its hiring and its standards | IT, devices, access and the service desk |
| Technical due diligence in a raise or a sale | Security operations and the policies behind them |
| Build or buy decisions for anything customers touch | Technology suppliers, contracts and licence spend |
What neither of them does
Neither owns the data strategy by default. In a company that sells software the CTO tends to absorb it, in one that does not the CIO does, and in both it is worth naming an owner rather than assuming one.
How each one fails
The fractional CTO: Being hired as a CTO by a company with no product to build, where the real problem is that the systems the business runs on are a tangle of subscriptions nobody owns.
A CIO: Being hired as a CIO by a software company whose product architecture is the constraint, so the internal systems are tidied while the platform customers pay for stays fragile.
What they cost, on the same basis
A fractional CTO charges £800 to £1,400 a day, which is £6,133 to £10,733 a month at two days a week. No separate band is published here. A fractional CIO is priced as a fractional CTO, £800 to £1,400 a day, with lighter head of IT briefs lower in that band. The monthly and annual arithmetic for the fractional side, against a full-time equivalent, is on the cost page for this seat.
Pick a CIO when
- The company does not sell software, and its systems, IT and suppliers are the technology problem
- Licence spend, access and internal systems have grown without an owner
- Security operations and IT compliance need a senior owner more than the product does
We would rather say that plainly than win an engagement that was the wrong shape. Nobody pays us to list on the bench, so there is nothing in it for us either way.
When you want both
In larger software companies, yes: the CTO faces outward at the product and the CIO inward at the business. Below that size one senior technology seat holds both, and the title should follow whichever side is the constraint.
vCIO vs fractional CIO
Much the same distinction as vCISO and fractional CISO. A vCIO, or virtual CIO, is most often a managed IT provider's senior tier: a named person reviewing the roadmap and the budget every quarter, bundled with the support contract. A fractional CIO is a former CIO or head of IT holding the seat for agreed days, independent of whoever supplies the IT.
The difference that matters is independence. A vCIO from your IT provider is well placed to plan within that provider's services and poorly placed to tell you to change provider. A fractional CIO has no stake in the supplier, which matters most when the contract itself is the problem.
Read next: Fractional CISO vs vCISO.
What to ask a fractional CIO
- Which systems have you consolidated or replaced, and what did it save in licences and time?
- How would you decide what to keep, replace or retire in our stack in the first month?
- Which supplier contracts have you renegotiated, and on what terms?
- How would you split the work between yourself and our IT provider or internal team?
- When would you tell us we need a CTO rather than a CIO, or a full-time hire rather than you?
Common questions
Should I hire a fractional CTO or a CIO?
A CTO builds what the company sells: the product, its architecture and the engineering team. A CIO runs what the company runs on: internal systems, IT, data and suppliers. A fractional CIO is priced as a fractional CTO, £6,133 to £10,733 a month at two days a week, because no separate band is published. Product companies need the CTO first; most others need the CIO.
Is a fractional CTO cheaper than a CIO?
Not usually, because they are priced in the same band. A fractional CIO is priced as a fractional CTO, £800 to £1,400 a day in the UK, so the difference in cost comes from the days the brief needs rather than the title. A head of IT brief is usually lighter and sits lower in the band.
When is a CIO the better choice than a fractional CTO?
The company does not sell software, and its systems, IT and suppliers are the technology problem. Licence spend, access and internal systems have grown without an owner. Security operations and IT compliance need a senior owner more than the product does.
Can I use a fractional CTO and a CIO at the same time?
In larger software companies, yes: the CTO faces outward at the product and the CIO inward at the business. Below that size one senior technology seat holds both, and the title should follow whichever side is the constraint.
What is the difference between a CTO and a CIO?
A CTO owns the technology the company sells: the product, its architecture and the engineers who build it. A CIO owns the technology the company runs on: internal systems, IT, data and the suppliers behind them. Software companies tend to need the CTO first; companies that do not sell software usually need the CIO.
What does a fractional CIO cost?
No separate band is published for a fractional CIO. It is priced as a fractional CTO, £800 to £1,400 a day in the UK, which is £3,067 to £5,367 a month at one day a week and £6,133 to £10,733 at two. A head of IT brief is usually lighter and sits lower in the same band.
Does a small company need a CIO?
Rarely as a full-time hire. What a small company usually needs is somebody senior to own the systems, the suppliers and the licence spend for a few days a month, which is a fractional CIO or a strong head of IT. The full-time seat appears once the internal technology estate needs managing every day.