Total Cost of Ownership (TCO) is a financial estimate that helps businesses understand the complete costs associated with acquiring and using a product or service over its entire lifecycle. This includes not only the initial purchase price but also ongoing expenses such as maintenance, training, and operational costs. By considering all these factors, organizations can make more informed decisions about their investments. TCO is particularly important in industries like information technology and manufacturing, where equipment and software can have significant long-term costs. By evaluating TCO, companies can identify potential savings and better assess the value of different options, leading to more strategic purchasing decisions.