What is meant by TCO and how is it used to evaluate ERP system bids?

What will be an ideal response?

TCO is short for "Total Cost of Ownership" and this provides a financial framework for comparing different ERP bids and alternative designs. TCO costs include hardware, software, training, and implementing the system. They also include all the cost of maintenance, optimization, and upgrading for a period of two years after the installation. Some claim that this is not a very accurate measure of ERP systems, but it is a helpful input into the ERP selection process.