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Total Cost of Ownership (TCO)

A financial estimate of all direct and indirect costs of owning and operating a system.

Complete Definition

Total Cost of Ownership for CRM includes not only licensing fees but also implementation costs, customization, integrations, data migration, training, ongoing support, and internal resource allocation. Calculating TCO helps organizations make informed decisions about CRM investments, compare vendors accurately, and plan budgets realistically over multi-year horizons.

Key Points

  • 1Includes all ownership costs
  • 2Beyond just licensing fees
  • 3Guides vendor selection
  • 4Enables realistic budgeting

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