Explore Total Cost of Ownership (TCO) examples that demonstrate how organizations uncover, analyze, and manage the full costs of technology and business initiatives. These practical examples show how companies look beyond upfront prices to evaluate the long-term financial impact of decisions, ensuring every dollar invested delivers real value. Discover use cases and success stories across different types of TCO assessments—covering IT infrastructure, software, cloud, and enterprise-wide initiatives. Looking to turn hidden costs into transparent insights? These TCO examples reveal how to make financial discipline a competitive advantage.
TCO ensures that organizations capture all direct and indirect costs over the lifecycle of an asset or project—helping avoid surprises and guiding smarter investments. For example, a company considering an enterprise software deployment may build a TCO model that goes beyond license fees to include integration, training, customization, support contracts, and future upgrades. This approach provides a realistic picture of the total financial commitment before a contract is signed.
A healthcare provider evaluating patient management systems might perform a TCO analysis comparing on-premises vs. cloud options, factoring in data security compliance costs, disaster recovery, IT staffing, and energy use. This ensures decisions align with long-term operational budgets, not just initial purchase savings. Similarly, a manufacturer planning factory automation could use TCO to weigh equipment prices against maintenance, productivity gains, warranty coverage, and downtime risks—resulting in a decision that balances cost with reliability and performance.
These are diverse examples of TCO assessments built by organizations of different types and sizes, operating across industries and responding to unique situations—like digital transformation, vendor consolidation, regulatory demands, or sustainability goals. You’ll also find examples of different approaches taken by similar companies addressing the same challenge, highlighting how TCO reflects strategic priorities. Each case underscores another angle of TCO, showing how it goes beyond accounting to inform meaningful business choices.
While these examples help illustrate how TCO works in practice, you can also build your own robust assessments using our TCO templates and calculators. How do different industries use TCO to guide smarter spending and long-term planning?
Here are some TCO examples:
| Industry | Business Objective | Examples of TCO Analyses |
|---|---|---|
| Healthcare | Reduce Lifetime IT Costs | Comparing EHR solutions, including compliance, user training, data migration, and long-term support costs. |
| Improve Service Resilience | Analyzing TCO of backup data centers vs. managed disaster recovery services. | |
| Financial Services | Lower Operational Risk | Calculating TCO of cybersecurity platforms, factoring insurance impacts, breach response, and staff certifications. |
| Support Digital Banking Growth | Assessing cloud vs. on-prem infrastructure costs over a 5-year horizon, including scaling demands. | |
| Manufacturing | Maximize Production ROI | Evaluating machinery investments, accounting for maintenance contracts, expected downtime, and energy efficiency incentives. |
| Enhance Sustainability | Performing TCO for green energy systems, incorporating rebates, lifecycle savings, and disposal costs. | |
| Retail | Optimize Fulfillment Operations | Comparing automated warehouse solutions by total implementation, integration, maintenance, and staffing costs. |
| Scale E-commerce Cost-Effectively | Analyzing TCO of multi-platform digital commerce solutions, including marketing tech and fraud management. | |
| Education | Expand Learning Platforms | Calculating TCO of LMS solutions, from license renewals to content updates and IT helpdesk loads. |
| Strengthen Data Security | Weighing on-prem vs. cloud storage costs over time, including regulatory audit preparedness. |
These TCO Examples show how diverse industries use total cost of ownership assessments to achieve transparency, reduce surprises, and support decisions that drive sustainable value.
This paper provides the results from two total cost of ownership (TCO) based studies to make a case for migrating from mainframes to open system alternatives.
Total Cost of Ownership Comparison (TCO) for Mainframe Migration Case Study Read More »
