Total Cost
of Ownership
Kamstrup’s Total Cost of Ownership analysis is a critical companion for utilities seeking to make informed investment decisions.
Why Total Cost of Ownership Matters
For water utilities, smart investment decisions require a long-term perspective. Total Cost of Ownership (TCO) is a framework that reveals the true value of investments beyond initial costs. When embarking on a significant investment, a TCO comparison provides a visual tool to fairly evaluate system costs.
Key TCO Levers
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Investment in Hardware and Installation
This value calculates the comprehensive cost of buying and installing new hardware. It considers the cost of the products and systems being evaluated and associated hardware and infrastructure costs.
Ongoing Costs of Software
Software costs are not always static. This value considers the long-term costs of software licensing.
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Quality and Maintenance
We estimate how much your utility will spend to maintain and/or replace broken or faulty meters. We factor in warranties and warranty disclaimers, among other factors.
Investment in Hardware and Installation
This value calculates the comprehensive cost of buying and installing new hardware. It considers the cost of the products and systems being evaluated and associated hardware and infrastructure costs.
The graphic above shows the impact of TCO. In the example we are looking at a utility with 12,000 metering points, for which the TCO analysis shows a significant difference between the initial costs and total costs. 
An AMI Meter Solution that Paid for Itself
Faced with financial risk and a loss of faith in their existing meter, Milcrofton began looking for a new advanced metering infrastructure (AMI) solution.