Total Cost of Ownership (TCO) is a helpful concept for making business purchase decisions. TCO includes the upfront cost, related costs, and estimated ongoing related costs throughout the useful life of the purchase.
TCO is often compared to an iceberg because the obvious costs, like the tip of the iceberg, represent only a small portion of the total. Many costs are hidden beneath the surface, just like the true size of an iceberg is hidden underwater. A detailed TCO analysis can help reveal the full "iceberg," ensuring you're prepared for all costs—not just the obvious ones.
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