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What Price PC?

More than just the price you pay, consider technology's total cost of ownership.

The price tag on that brand-new Pentium II PC looks pretty tempting. In fact, you decide, you can fit the expense into your business's budget rather easily. But before you buy, answer this question: Have you considered its total cost of ownership (TCO)?

More than just the equipment's original cost, TCO looks at the big picture, taking into consideration information technology (IT) costs incurred throughout the life of your business. These costs include everything from technical support to training--even administrative expenses for procuring technology. Analyzing your equipment's TCO has become increasingly important because the additional costs you incur throughout the equipment's lifetime, especially when it comes to PCs, can add up to much more than the cash you laid out upfront.

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This article was originally published in the October 1997 print edition of Entrepreneur with the headline: What Price PC?.

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