Glossary
TCO
Total Cost of Ownership, the full multi-year cost of a system or software stack including licensing, support, implementation, and operational cost.
A meaningful IBM i TCO comparison against SAP, Oracle or cloud ERP alternatives has to include implementation cost. That work often represents 50 to 70 percent of first-year ERP spend. Ongoing support and the cost of replacing custom business logic also belong in the comparison, not just the software license price.
Related Terms
Perpetual License
A software license purchased once (as an OTC) that does not expire, paired with optional annual SWMA for support and upgrades.
Subscription License
A recurring annual IBM i software license fee, now the only option for new P05/P10 purchases and the structure behind the P20/P30 bundle tiers.