TCO allows the company to determine when maintenance costs on older technology are less cost effective than replacing the hardware. TCO helps to determine operational life expectancy of technology. TCO is an important concept. Considering only the initial investment in IT expenditures does not give a true indication of what those expenditures will cost the company in the long term. There are many factors that need to be considered as part of the total ownership costs for that technology. These factors include things like training, technical support, retirement costs, supplies and maintenance, as well as the effect on employee productivity. Although obtaining the information necessary to implement TCO may be a significant expense
TCO allows the company to determine when maintenance costs on older technology are less cost effective than replacing the hardware. TCO helps to determine operational life expectancy of technology. TCO is an important concept. Considering only the initial investment in IT expenditures does not give a true indication of what those expenditures will cost the company in the long term. There are many factors that need to be considered as part of the total ownership costs for that technology. These factors include things like training, technical support, retirement costs, supplies and maintenance, as well as the effect on employee productivity. Although obtaining the information necessary to implement TCO may be a significant expense