Gartner Research

Defining Gartner Total Cost of Ownership

Published: 08 December 2005

ID: G00131837

Analyst(s): Bill Kirwin, Lars Mieritz


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
  • What Is TCO?
  • Origin of TCO
  • Definition of TCO
  • Mandatory Elements Required to Create a TCO Assessment
  • Optional Elements to Improve a TCO Simulation
    • Complexity Module
    • Best-Practice Module
    • Worker Type Profile Module
    • Zeroing Indirect Costs
  • Who Should Use TCO
  • How IT Users Utilize TCO
    • Comparing Costs to a Baseline
    • What-If Scenarios Before Implementation
    • Understanding Future Costs
  • How IT Vendors Utilize TCO
  • Conclusion

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