is a model developed by Gartner Group to analyze the direct and indirect costs of owning and using hardware and software. Managers of enterprise systems use various versions of TCO to lower costs while increasing the benefits of information technology deployments. The TCO includes: original cost of the computer and software, hardware and software upgrades, maintenance, technical support, and training. Most estimates place the TCO at about 3 to 4 times the actual purchase cost of the PC.
Total Cost of Ownership takes into account not only the cost of hardware, but also the supplies and support required to use your printing and imaging equipment effectively. In addition to the "hard" costs of hardware, supplies and support, but "soft" costs like end-user productivity, administrative and inventory costs.
A calculation that considers all costs associated with investment in a technology.
The cost to the organization for the initial implementation and the maintenance of the system.
The total cost of owning a product over its life cycle. For example, the cost of owning a personal computers doesn't end with the purchase price. The costs associated with procuring and using that computer over its life, acquisition cost, operational cost, administration, training, repairs, even disposal of the product when it needs to be replaced, all contribute to TCO.
the total cost of a product or service which takes into account all direct and indirect costs
The Total Cost of Ownership (TCO) is an annual cost representing the actual 'all in' cost of 'end user computing'. The issue has been pioneered by the respected business technology research company, Gartner Group Inc which currently estimates that a networked PC 'costs about $13,200 per node annually for hardware, software, support and administrative services and end-user operations'.
The business world, where multiyear budgeting and planning are common, looks upon technology as a tool to increase productivity. Business models often calculate the approximate total cost of ownership for technology initiatives through formulas that incorporate both expenditures on hardware and software and maintenance, replacement, training, and all aspects of the business that are impacted by the core system. ()
A type of calculation designed to help consumers and enterprise managers assess both direct and indirect costs and benefits related to the purchase of any IT component. The intention is to arrive at a final figure that will reflect the effective cost of purchase, all things considered. When you decide to buy a computer you may go through a TCO analysis: for example, the greater cost price of a high-end computer might be one consideration, but one that would have to be balanced by adding likely repair costs and earlier replacement to the purchase cost of the bargain brand. The TCO has to be compared to the total benefits of ownership (TBO) to determine the viability of the purchase.
TCO (total cost of ownership) is a type of calculation designed to help consumers and enterprise managers assess both direct and indirect costs and benefits related to the purchase of any IT component. The intention is to arrive at a final figure that will reflect the effective cost of purchase, all things considered. (whatis.com)
When evaluating software, you must also consider, in addition to the costs of the software licenses, what are the ongoing maintenance fees, support costs, training, etc. You also need to consider how much time and money it will cost to own the software over the long term. TCO considers all the costs that might be associated with a software solution over its lifespan in the company.
Model that helps IT professionals understand and manage the budgeted (direct) and unbudgeted (indirect) costs incurred for acquiring, maintaining and using an application or a computing system. TCO normally includes training, upgrades, and administration as well as the purchase price. Lowering TCO through single-point control is a key benefit of server-based computing.
The real amount an asset will cost. Example: An accounting application retails at $1000. Support - which is mandatory, costs a further $200 per annum. Assuming the software will be in use for 5 years, TCO will be $2000 (1000+5x200=2000).
This phrase was coined by the creators of the Network Computer (NC) to describe the benefits of using a system that is more mainframe and less client/server. Their logic states that NCs, although they may cost the same up front as cheap PCs, have a lower TCO than a network built on PCs.
The cost to own a product throughout its life.
(TCO) Produced by IntelliChoice, Inc, Total Cost of Ownership is the total expected ownership cost to own and operate a vehicle for five years. The Total Cost of Ownership calculation includes depreciation, financing, insurance, state fees, fuel, maintenance and repairs. Vehicle trim configurations used to calculate ownership cost differ by class. Vehicles are priced using the most popular features equipped in two-thirds or more of the vehicles sold in each class. For instance, in recent model years, over 90% of all midsize vehicles sold were equipped with cruise control, while less than 50% of subcompact models sold had this feature. Therefore, cruise control is included in calculating ownership cost for the midsize class, but not for subcompacts.
Sometimes known as full cost or fully costed. Often expressed over a period of time - "The three-year TCO is $1,200." All the expenses related to acquiring and operating an asset (initial price, maintenance and upkeep, installation, storage, opportunity costs, training costs, support, interest, depreciation, upgrades).
The real cost for a product, encompassing materials, installation, maintenance, anticipated repairs and necessary monitoring. For example, a floor requiring periodic buffing and conductive wax applications also requires testing and monitoring after each maintenance interval, to ensure electrical compliance. When maintenance prohibits the use of space, this cost should also be factored in. Monitoring and other hidden costs are often overlooked or ignored in the initial cost analysis.
The initial cost of any technology product, as well as the additional expenses of ownership, including maintenance, support services, fitting, training, etc.
A long-term view of all costs associated with a specific technology investment. Costs include that of acquiring, installing, using, maintaining, changing, and disposing of a technology during its useful life.
TCO refers to the total cost of owning and operating a computing platform. This is typically much higher than the purchase cost of hardware and software; it includes the cost of training, upgrades, maintenance, software distribution and installation, and depreciation.
The ongoing costs associated with maintaining, managing, securing, supporting, growing, and upgrading an organization's information infrastructure (including hardware, software, services, and people). Containing these costs is a major challenge for today's business and is has a direct impact on the success or failure of many companies.
Total cost of ownership (TCO) has been a steady beacon in the information technology landscape since 1987, when Bill Kirwin, vice president and research director at Stamford, Conn.-based Gartner Group Inc., first applied the model to desktop systems. Gartner has since extended the model into LANs, client/server software, distributed computing, telecommunications, mainframe data centres and most recently, Windows CE and Palm OS handheld computers. Around the corner are models for storage technology and applications development.
In supply chain management, the total cost of ownership of the supply delivery system is the sum of all the costs associated with every activity of the supply stream. The main insight that TCO offers to the supply chain manager is the understanding that the acquisition cost is often a very small portion of the total cost of ownership.
Total cost of ownership (TCO) is a financial estimate designed to help consumers and enterprise managers assess direct and indirect costs related to the purchase of any capital investment, such as (but not limited to) computer software or hardware. A TCO assessment ideally offers a final statement reflecting not only the cost of purchase but all aspects in the further use and maintenance of the equipment, device, or system considered. This includes the costs of training support personnel and the users of the system, costs associated with failure or outage (planned and unplanned), diminished performance incidents (i.e. if users are kept waiting), costs of security breaches (in loss of reputation and recovery costs), costs of disaster preparedness and recovery, floor space, electricity, development expenses, testing infrastructure and expenses, quality assurance, incremental growth, decommissioning, and more.