Total Cost of Ownership

Total Cost of Ownership

Understanding the Total Cost of Ownership (TCO) of a technology solution helps the decision maker to develop a solution that is affordable to develop and maintain over time. It also helps the decision maker to evaluate if the investment into the 12 components of the model is appropriate for the environment within which the technology is deployed.
The ICT4RED Total Cost of Ownership model was an adaptation of the GeSCI TCO model for large-scale deployments (GeSCI 2008 ). It consists of the following cost components:

Elements of the ICT4RED TCO model
Figure 2 : Elements of the ICT4RED TCO model

The TCO model differentiates between investment at regional or national level (central costs) and investment at school level. It also differentiates between setup and running costs.
The Total Cost of Ownership is calculated over a five-year timeframe. It calculates the total cost of setting up and maintaining the initiative over a five-year period, the investment across the 12 components and the investment that is required over time, for each component.

Using cost information to inform decision-making for sustainability

The TCO model can be used to inform a number of management decisions, all of which would support sustainability. Key questions include the following:

  • Investment profile:

    is the investment in the project in support of long-term sustainability?

  • Affordability:

    is a solution developed that is affordable to the agency that needs to support it over time?