Procurement - Measure
TCO
(Total Cost of Ownership)
The total cost of owning and using something over its life, not just the purchase price
What's it for?
Shows the real cost of owning something over time, including more than just the purchase price.
For example…
A cheap licence looks attractive until TCO adds implementation, training, integrations, and three years of support fees
A £100,000 software licence may have a much higher TCO once implementation, integration, support, training and upgrades are included over five years
Think of it like…
The real cost of a car includes fuel, insurance, and repairs—not only the showroom price