Total cost of ownership (TCO) | Glossary

Definition:

Total cost of ownership (TCO) is an analysis meant to uncover all the time period prices that follow from owning certain kinds of assets. As a result, TCO is usually called lifecycle cost analysis.

Total cost of ownership (TCO) highlights the difference between purchase price and long-term cost. This analysis came into the spotlight beginning within the time of life due to the expenses in supporting hardware and software IT acquisitions. Managers discovered that supporting the equipment and software may cost between 5 and 8 times the purchase price.

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Further Reading:

Book: Testing Practitioner Hanbook by Renu Rajani.

 

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