Total cost of ownership Everything an AI system costs over the years you use it, not just the price tag.
Short answer. Total cost of ownership (TCO) is the full cost of acquiring, running, maintaining and finally retiring something over its useful life, not just its purchase price. India’s Manual for Procurement of Goods treats total cost of ownership, life cycle cost and whole-of-life cost as one refined idea of cost, and notes that the cost of operating, maintaining and disposing of capital equipment can far outweigh its purchase price. For office AI, the comparison is usually per-user cloud subscriptions against hardware you own. Example: Microsoft lists the Microsoft 365 Copilot Business add-on in India at ₹1,745 per user per month, paid yearly, plus GST, on top of an eligible Microsoft 365 plan. For 20 users over three years that is ₹12,56,400 before GST. An appliance costs more upfront and has its own running costs, so compare both over the same years.
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Cost lines to include
Cost line
Cloud AI subscription
AI box you own
Upfront
Usually none
Hardware price, installation, and a UPS if needed
Recurring licence
Per user per month, often paid yearly
Software support or updates, if charged
Prerequisites
A qualifying base plan; for the Copilot add-on, an eligible Microsoft 365 Business plan
Office network and power backup
Running
Included in the subscription
Electricity, space and cooling
Maintenance
Included
An annual maintenance contract after the warranty
People
Admin time for licences and settings
Admin time for accounts, updates and backups
Exit
Exporting data before it is deleted
Disposal and secure wiping of drives
Taxes
GST on the subscription
GST on the purchase and the maintenance contract
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A worked example: 20 users, three years
Prices before GST, from Microsoft’s India pricing page and ANVE’s indicative prices, as of October 2026. The rows are not like for like: Copilot works inside Microsoft 365 apps in the cloud, while an appliance runs models in the office and has running costs of its own.
ANVE Office is also offered as rent-to-own, directly from ANVE with no third-party lender: ₹13,999 a month × 48 months, ex-GST, care included (ANVE Care: updates and support), and the box is yours at the end. Both prices are indicative; the final price and the rent-to-own agreement are confirmed in writing before you order.
Option
Year 1
Three years
Notes
Microsoft 365 Copilot Business add-on
₹4,18,800
₹12,56,400
₹1,745 per user per month, paid yearly; needs an eligible Microsoft 365 Business plan; a first-year promotional price of ₹1,495.73 applies to offers taken from 1 July to 31 December 2026
Microsoft 365 Business Standard with Copilot
₹4,69,200
₹14,07,600
₹1,955 per user per month, paid yearly; includes the Office apps and business email
ANVE Office, indicative
₹4,49,000 plus running costs
₹4,49,000 plus running and support costs
Indicative launch price, ex-GST, for up to 25 named users; the final price is not announced
03
Running costs people forget
Electricity: at an assumed average draw of 200 W, a box uses about 1,750 kWh a year; multiply by your tariff.
Power backup: a UPS sized for the box, and its battery replacements.
Admin time: accounts, updates, backups and a look at the logs, even if only an hour a week.
Renewals: cloud promotions end, so budget at the standard price.
Exit: the cost of moving data out, or of losing it, when you stop.
04
How to compare fairly
Use the same period for both options, usually the years you expect to keep the hardware, and the same number of users. The procurement manual recommends discounting future maintenance costs to present value when comparing offers over several years. Then weigh what the money buys: where data is processed, what each user can do, and what happens if you stop paying.
On that last point, every ANVE order includes a perpetual licence for the software delivered with the unit, and there is no remote kill switch, as the /security page sets out. Ask any vendor for its support and maintenance terms in writing before you compare.
05
Questions people ask
Is cloud AI cheaper than on-premise AI?
It depends on users, years and how heavily the tool is used. Cloud costs grow with every seat and month; owned hardware costs more upfront and little more per extra user. Work out both with your own numbers.
Over how many years should we compare?
Over the period you expect to use the hardware before replacing it, and use the same period for the cloud option. Shorter periods favour subscriptions; longer ones favour owned hardware.
Should GST be included in the comparison?
Include it if your office cannot claim input tax credit on it; otherwise compare prices before GST. Your accountant can confirm which applies.
Does ANVE’s price include support?
ANVE’s launch prices are indicative and ex-GST, and the final price is not announced, so ask for support and maintenance terms in writing as part of any offer.
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What is not real yet
No sealed ANVE unit exists; every image of the appliance on this site is a labelled render. The software runs today on a development machine. No customers yet, no certifications, no delivery date, and the final price is not announced.
Reservations are ₹999 in India or US$12 elsewhere, refundable in full until you confirm an order in writing (terms). Offices that cannot use cloud AI can apply to be one of ten design partners.
