TCO
Total Cost of Ownership: the estimation of all costs associated with an IT asset throughout its lifecycle.
TCO (Total Cost of Ownership) refers to the estimation of all direct and indirect costs associated with an IT asset throughout its lifecycle. This includes initial acquisition costs, ongoing maintenance, operational expenses, and even costs related to decommissioning or disposal. TCO provides organizations with a more complete view of the investment and return on their technology spending.
TCO components include:
- •Acquisition Costs: Licenses, hardware, implementation
- •Operational Costs: Hosting, support, training
- •Maintenance Costs: Updates, fixes, enhancements
- •Hidden Costs: User time, lost productivity
- •Exit Costs: Data migration, decommissioning
Calculating TCO enables objective comparison of different solutions and informed investment decisions.
All terms
Application
A computer program or set of programs designed to streamline business operations.
Architecture
Refers to the structure and behavior of IT systems, processes, and infrastructure within an organization.
CMDB
Configuration Management Database: a comprehensive repository of information about IT components.
Data Flow
Describes the path data takes from its original source to its destination point.
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