Which option BEST describes what TCO (total cost of ownership), used to compare on-premises and cloud costs, includes?
A question asking what scope TCO (total cost of ownership) includes.
Only the purchase price of the servers
TCO includes not only the server purchase price but all costs related to ownership, such as operations, maintenance, power, and space.
The "purchase price only" description is too narrow, so it is incorrect.
Only the internet connection fee
The connection fee is only one element of TCO.
TCO is the total cost related to ownership, so the "connection fee only" description is incorrect.
The total cost of ownership including hardware, software, operations and maintenance, power, and installation
This is correct. TCO (total cost of ownership) refers to the comprehensive cost of owning and operating a system — not only the initial purchase but also software, operations and maintenance labor, power and cooling, installation space, and hardware refresh. It is used to compare on-premises and cloud fairly.
It includes no costs other than AWS usage charges.
TCO is not limited to AWS usage charges; it is a concept for comprehensive comparison that includes on-premises operations, maintenance, power, and more.
The claim that it includes nothing beyond usage charges is wrong, so it is incorrect.
TCO = the total cost of initial purchase + operations/maintenance + power/cooling + space + hardware refresh and more. A concept for comparing fairly with the cloud, including the "hidden costs" of on-premises.