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.

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