The acronym TCO stands for Total Cost of Ownership, which is a financial estimate used to evaluate the complete cost of acquiring and operating an asset over its lifetime. TCO includes not only the purchase price of the asset but also additional costs such as maintenance, training, support, and operational expenses. This comprehensive analysis enables organizations to make informed decisions regarding investments by factoring in long-term expenses against upfront costs. TCO is particularly relevant in technology investments, helping businesses understand the real costs associated with hardware, software, and infrastructure.