Total Cost of Ownership Calculations in the Information Technology Industry
Total Cost of Ownership calculations are a useful tool for companies to support procurement decision making and cost management. They were first introduced in the information technology industry in 1987 and are frequently used ever since with many models that evolved side by side. An overview of the existence, availability and use of those models is given, based on literature review and internet sources, to better understand the practical possibilities offered by TCO in the IT industry. Furthermore is the extent of standardization of TCO models in the IT industry reviewed. Interviews with IT procurement executives have also been conducted to get more insights on the usage of TCO models in practice.