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In all its simplicity, Total Cost of Ownership, TCO, is about calculating the total costs in relation to a product and not only focus on the acquisition price. There are many costs connected with acquiring a product, i.e. invoicing, implementation, operation, service, maintenance, lifecycle, downtime and disposal.
That is why the most inexpensive product might not always be optimum solution for your particular business. You will gain many benefits from doing TCO calculations: