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TCO (Total Cost of Ownership)

A complete accounting of costs to reflect not only the acquisition cost but also the costs of use and maintenance of system. For an enterprise information system the components include the following costs:

TCA (Total Cost of Acquisition) is a poor predictor of TCO. For example, a system with a high TCA with features to reduce manual and duplicate procedures, and better inform customer service will produce a lower TCO than a system with a low TCA that lacks the features required by the organization.

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