Total Cost of Ownership
Total Cost of Ownership (TCO) modeling is a tool that systematically accounts for all costs related to an information technology (IT) management decision. TCO includes all costs, direct and indirect, incurred throughout the life cycle of an asset, including acquisition and procurement, operation and maintenance and end-of-life management.
As stated inside the spreadsheet, this tool allows users to compare the costs of different options for the life cycle management of IT equipment with an emphasis on decisions that may have an environmental impact. For example, what is the annualized cost of purchasing ENERGY STAR qualified equipment compared to a conventional unit? What will be the cost savings of extending the period of use for equipment from 4 years to 5 years, or purchasing only desktop processing units and keeping the current desktop monitors?
Author : Federal Electronics Challenge
