TCO (Total Cost of Ownership)

Introduction to TCO

TCO (Total Cost of Ownership is the total cost of a good (e.g. an information system) over its entire life cycle. TCO takes into account not only direct costs (equipment costs such as computers, network infrastructures, etc. or software such as licence costs) but also indirect costs (hidden costs) such as maintenance, administration, user and administrator training, development, technical support and recurring costs (consumables, electricity, rent, etc.).

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