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T. C. O.
Many companies have recognized the need to examine the IT infrastructure from both a cost perspective and a performance standpoint. This analysis can be referred to as "IT optimization," and it includes an examination of computer hardware, software, and workflow processes to ensure peak performance of IT operations within the enterprise.
One of the most often overlooked pieces of the IT optimization process is in printing and copying, or hardcopy as a whole. The running costs which tremendously outweigh the initial printer price are often neglected and thus lead to high costs of ownership.
This is where the importance of TCO comes in. Total Cost of Ownership is what TCO means and as the name implies, it is the total cost at which a user will be spending throughout the life of a product.
Over the years, this has been proven to be the best way to determine cost efficiency from equipment especially those with consumables. However, it is not only consumables that are considered in TCO. It also considers consumable parts or parts replacements such as drums, developers, fusers and the likes. Even service expense should be considered to get more accurate TCO computations. Thus, when the final comparisons are made between different brands, all areas of expense would have been considered throughout the life of the product. The main importance is that all data must be present at the start of information processing.
This will greatly help organizations with their IT Optimization.
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