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total cost of ownership
(redirected from Cost of ownership)

   Also found in: Financial, Acronyms, Wikipedia 0.04 sec.

total cost of ownership

Term introduced at the end of the 1980s by US market analysts (in particular the Gartner Group) to indicate the complete cost of owning a desktop device, including capital, technical support, administration, and end-user costs. TCO has been used to highlight the difference between the ownership costs of a personal computer, a network computer, and a Windows-based terminal.



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Manufacturers that keep a sharp eye on the bottom line know that the cost of ownership and operation of a piece of capital equipment is actually more important, when considered over the span of the useful life of the equipment, than the initial investment in the machine.
An Aberdeen Group, report titled, "4D Embedded Database of cost of Ownership Study: an executive white paper, examines the cost of ownership of 4D 6.
Contrary to popular belief, an IP-based system of 40 cameras offers a lower total cost of ownership (TCO) than an analog-based surveillance system, according to a new study released today by global network video leader Axis Communications.
 
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