Lifecycle Costing

What is lifecycle costing?
Lifecycle costing refers to the holistic consideration of all costs incurred during the entire lifecycle of an IT asset. This includes acquisition costs as well as expenses for operation, maintenance, support, energy, spare parts and decommissioning or disposal.

Classification: Use and economic added value
Lifecycle costing is used in IT strategy, procurement and hardware maintenance in order to make well-founded investment decisions. The advantage lies in the realistic assessment of the total cost of ownership (TCO) and the comparison of different operating and maintenance models such as OEM support or TPM. Risks arise if follow-up costs are not adequately taken into account. The added value lies in better budget planning, greater cost transparency and a more economical IT infrastructure in the long term.