Total Cost of Ownership (TCO)

The complete cost of a solution including hidden and ongoing expenses.

Definition

The complete cost of a solution including hidden and ongoing expenses. Understanding this concept is essential for making informed decisions about software development and tool selection.

Why It Matters

In the context of build vs buy decisions, understanding total cost of ownership (tco) helps you:

• Make more informed technology decisions
• Communicate effectively with technical and business stakeholders
• Evaluate vendors and solutions more accurately
• Plan for long-term implications of your choices

Related Concepts

This concept often comes up alongside discussions of:

• Total cost of ownership
• Build vs buy analysis
• Technical debt
• Vendor lock-in