What is a Total Cost of Ownership?
A total cost of ownership (TCO) is the purchase price of a product plus the cost of operations. When calculating the total cost of ownership, it exemplifies the overall value of a product over time giving you a better idea of how much something is worth.
When gathering data to make a purchasing decision, buyers should not only consider the initial price of a product, but they should also consider the long-term price of a product which would be the TCO. The item with the lower total cost of ownership is the better value overall.
