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 (typically 50-70% of year-one ERP spend), ongoing support, and the cost of replacing or re-platforming any custom business logic -- not just the sticker price of software licensing.
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.