Total Cost Of Ownership (TCO)¶
Total Cost of Ownership, aka TCO, is a financial estimate that helps businesses and individuals calculate the direct and indirect costs associated with owning and operating software, hardware, equipment, or even a service, over its entire lifecycle.
Initial Costs: purchase price, installation, setup, and training.
Operating Costs: maintenance, repairs, upgrades, and support.
Usage Costs: energy consumption, licensing fees, and consumables.
Downtime Costs: lost productivity, troubleshooting, and opportunity costs.
End-of-Life Costs: disposal, migration to new system, or replacement costs.
See also TCO calculator.
Related : Lifecycle, Performance, Maintenance, Legacy, Refactoring
