What Is Total Cost of Ownership (TCO)?

January 17, 2023

The Total Cost of Ownership (TCO) is a financial metric that evaluates the total cost of using a product or service. TCO determines an asset's direct and indirect expenses over its entire lifespan, enabling companies to generate a precise cost-ROI ratio.

In addition to the upfront purchase price, TCO also accounts for the following costs: setup, maintenance, downtime during installation, necessary staff training, licensing, potential upgrades, and EOL disposal.

Anastazija is an experienced content writer with knowledge and passion for cloud computing, information technology, and online security. At phoenixNAP, she focuses on answering burning questions about ensuring data robustness and security for all participants in the digital landscape.