Glossary · Business
Total cost of ownership
Also known as: TCO
In brief
Total cost of ownership for a humanoid robot is the sum of purchase price, financing, integration, operating cost (energy + software + network), maintenance, parts, insurance, and decommissioning, amortized over the unit's working life. A common simplification: TCO/hour ≈ (price ÷ life-hours) + operating cost + maintenance reserve.
Procurement decisions live or die on TCO models. Purchase price is the visible number; TCO is what determines whether the unit makes economic sense. Industrial humanoid platforms target a 5–7 year working life, so a $90,000 unit run two shifts amortizes at $4.50/hour on the capex line plus operating cost on top.
The biggest TCO surprise in early deployments is integration cost — making the unit work in your specific environment, with your specific tooling, on your specific shift schedule. Year-one integration spend is often 10–20% of unit cost; year-two onward usually drops sharply.
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