TCO means total cost of ownership and equals the full cost of a solution during its lifetime including the cost of purchase, maintenance, support, energy consumed and disposal. In the recent years, the cost of energy has been affecting TCO almost at the same level than the initial purchase. Also, there are capital costs, related to space occupancy, which weight quite considerably in the final TCO calculation.
DatacenterKnowledge recently kicked off a series of articles by Julius Neudorfer, CTO and founder of North American Access Technologies, Inc. (NAAT). In this articles Neudorfer provides various insights on the TCO of data centers:
“Total Cost of Ownership is basic and easy to calculate; just ask any first year economics or business major. Nonetheless, the true TCO of the data center is somewhat more elusive to project accurately. There are many subtleties which can be overlooked or are simply unaccounted for (or perhaps underestimated), over the operational life of a data center. This articles examine the many aspects of TCO, such as energy costs and operating efficiency, as well as other data center specific issues.”
We can highly recommend the series. They are available in full length for download at DatacenterKnowledge.