TCO model

The Total Cost of Ownership (TCO) model is a way to understand all the expenses associated with acquiring and maintaining an asset over its entire lifespan. Instead of just considering the upfront purchase price, TCO includes costs like installation, operation, maintenance, upgrades, and eventual disposal. This comprehensive view helps businesses make more informed decisions by evaluating what a product or system will truly cost over time, rather than focusing only on the initial price. Essentially, TCO provides a full picture of spending to optimize investments and reduce unexpected costs.