TCO (Total Cost Of Ownership) is a financial estimate approved by Gartner in 1987 to help companies calculate precisely economic impact during the whole life cycle of IT projects.
Knowing the total costs allows companies to evaluate solutions and products more consciously than simply evaluating purchase price.
Migration to the cloud is an unstoppable trend, companies evaluate the advantages of cost-saving that a pay-as-you-go system offers when you need to replace your equipment on-premises, lower costs or switch to an agile model of business by developing cloud native applications.
Despite the growing trend, we still see how the decision-making process slows down due to complex cost calculations.