Total Cost of Ownership
HIT Concept of the Day
Total Cost of Ownership (TCO) : a structured approach to calculating the costs associated with buying and using a product or service. Total cost of ownership takes the purchase cost of an item into account but also considers related costs such as ordering, delivery, subsequent usage and maintenance, supplier costs, and after-delivery costs. Originally designed as a process for measuring IT expense after implementation, total cost of ownership considers only financial expenses and excludes any cost-benefit analysis.
Total Cost of Ownership (TCO) : a structured approach to calculating the costs associated with buying and using a product or service. Total cost of ownership takes the purchase cost of an item into account but also considers related costs such as ordering, delivery, subsequent usage and maintenance, supplier costs, and after-delivery costs. Originally designed as a process for measuring IT expense after implementation, total cost of ownership considers only financial expenses and excludes any cost-benefit analysis.
BNET Business Dictionary - http://dictionary.bnet.com/definition/total+cost+of+ownership.html
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