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Where can I find information about the “Total cost of Ownership (TCO)”?

Last post 08:04 pm July 3, 2023 by Nicholas Gabrichidze
2 replies
Fidias Alexopulos
04:31 am July 3, 2023

Hi,

I’ve been looking a lot where to find an official definition of this concept in scrum org without any success. It’s a question commonly used in pspo 1 exam. 

 

Thanks,

Ian Mitchell
07:19 pm July 3, 2023

Perhaps it's being left to Product Owners to understand and account for the total cost of ownership, and hence there is no prescription.

A PO may or may not wish to consider, for example:

  • the opportunity cost of not investing in new ideas,
  • the cost of maintaining an existing product to brand reputation,
  • depreciation in equity
  • whether a loss might be usefully offset in some way.
Nicholas Gabrichidze
08:04 pm July 3, 2023

What is TCO in Agile?

Total cost of ownership (TCO) is an estimate of the expenses related to a product. This cost can include purchasing, implementing, launching, using, supporting, and retiring the product.

Pay attention to the word estimate.

The PSPO-I knowledge base does not include PSPO , it part of EMB which is next step

If you bump to the question where possible answers are mentioning TCO, its most likely a "trick" question, which set to take you attention away from right answer. So if you find TCO among the possible answers in the assessment or actual test  it might be a good idea to not consider this answer option. 

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