What does the TCO stand for? What is the function of TCO?
is a comprehensive assessment of information technology (IT) or other costs across enterprise boundaries over time. For IT, TCO includes hardware and software acquisition, management and support, communications, end-user expenses and the opportunity cost of downtime, training and other productivity losses.
The TCO Calculator is designed to help people who are new to the concept of total cost of ownership.
It may not be particularly useful to those who are experienced and/or qualified in accounting or related disciplines - it is recommended that these people continue to use their current methodology, or seek more sophisticated software.
The calculator contains a number of categories and sub-categories of costs associated with the life-cycle of an item. Some of these are obvious, like the purchase cost of the item, but some are things that you might not have thought of, such as the cost of outages. The calculator is designed to prompt you to think about costs that you may not have thought of, but you only need to enter data into the fields that apply to the product that you are procuring.
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