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total cost of ownership (TCO)

Total Cost of Ownership (TCO) is a term coined by the Gardner Group that encompasses all costs of distributed computing.

Total Cost of Ownership (TCO) can be translated as total operating costs, but related to computing. These total operating costs are divided into direct costs, investment and procurement costs for hardware and software, operating costs, and costs for technical support and administration. In addition, there are the indirect costs, which are reflected in end-user operating costs and downtime

costs.

TCO model developed by Gardner Group

TCO model developed by Gardner Group

The TCO method is used for dedicated cost analysis, which can be used to identify and eliminate hidden cost items in advance of investments.

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Englisch: total cost of ownership - TCO
Updated at: 06.06.2008
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