 - 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. 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.
TCO analysis originated with the Gartner Group several years ago and has since been developed in a number of different methodologies and software tools. TCO analysis performs calculations on extended costs for any purchase - these are called fully burdened costs. For the consumer's purchase of a computer, the fully burdened cost may include costs of purchase, repairs, maintenance, and upgrades. For the business purchase of a computer, the fully burdened costs can also include such things as service and support, networking, security, user training, and software licensing. The TCO has to be compared to the total benefits of ownership (TBO) to determine the viability of the purchase.
 |
Learn more about Managing data center outsourcing services and vendors |
| Negotiating a contract: What are the pros and cons of negotiating a contract over the traditional tendering procedure? |
| Assuring your third-party data center is secure: The costs are generally lower and the bandwidth abundant, but are third party data centers secure enough to protect your data? |
| Data center consulting a benefit for major projects: IT pros have to wear many hats when it come to the data center. But data center consulting and outsourcing services can make major projects easier. |
| Data center hosting facilities on the rise: Demand for both managed hosting facilities and collocated data centers is on the rise. |
| Data center outsourcer picks up graveyard shift: Outsourcing IT services, including data center management, is a growing trend, though some are hesitant to make the jump. |
| Data center outsourcing risks: Kevin Beaver examines data center outsourcing risks |
| Quiz: Negotiating -- Do you speak business?: Find out how much you know about the language of negotiation. |
| Disaster recovery strategies: Should you outsource, manage in-house or partner?: In disaster recovery facility site selection, a key consideration is whether to outsource, maintain your site in-house or partner with others on disaster recovery strategy. |
| How to prepare for remote data center maintenance trips: When you plan to go to a remote data center to perform maintenance, there are some steps you can take to make your visit go as smoothly as possible. |
| Business continuity planning consultants: Are they worth the money?: When embarking on business continuity planning for your data center, the first step is deciding who will lead the process. Consultants can help if you lack in-house expertise. |
| Protecting your data center from real show-stoppers: Preparing a disaster recovery plan: When creating a disaster recovery plan, learn lessons from recent events. Consider logistical issues: phone, email, internet connectivity issues, and physical facility access. |
| LAST UPDATED: |
31 Jan 2005
|
 |
Do you have something to add to this definition? Let us know.
Send your comments to techterms@whatis.com
|
|
More resources from around the web:
|
|
Show me everything on 
