Defining Gartner Total Cost of Ownership

Archived Published: 08 December 2005 ID: G00131837

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Gartner TCO is a consistent, industry-standard way of assessing IT costs. Given tighter financial controls and increasingly expanding IT influence, TCO analysis is more critical than ever. Thus, it's important to distill TCO into its elemental parts and define it at its fundamental level.

Table of Contents

  • Analysis
    • 1.0 What Is TCO?
    • 2.0 Origin of TCO
    • 3.0 Definition of TCO
    • 4.0 Mandatory Elements Required to Create a TCO Assessment
    • 5.0 Optional Elements to Improve a TCO Simulation
      • 5.1 Complexity Module
      • 5.2 Best-Practice Module
      • 5.3 Worker Type Profile Module
      • 5.4 Zeroing Indirect Costs
    • 6.0 Who Should Use TCO
    • 7.0 How IT Users Utilize TCO
      • 7.1 Comparing Costs to a Baseline
      • 7.2 What-If Scenarios Before Implementation
      • 7.3 Understanding Future Costs
    • 8.0 How IT Vendors Utilize TCO
    • 9.0 Conclusion
  • Recommended Reading
© 2005 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

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