Azure

Total Cost of Ownership

(TCO) summary
Sample Report for Data Center Migration
(Windows and Linux servers)
Assumptions and inputs

Compute Networking
Physical servers Outbound bandwidth (GB)/Month

# OS Proc(s) per Total RAM Optimize GPU 15 TB

Servers server cores (GB) by

Virtual machines

# VMs OS Virtualization Core(s) RAM Optimize Azure region

(GB) by
500 Windows VMware 8 16 CPU US East 2
500 Linux VMware 8 16 CPU

Storage
Storage Disk Capacity Backup Archive Accessibility
type type %
Local HDD 60 TB 0 TB 0 TB 100
Disk/SAN

DISCLAIMER: The TCO Calculator output is only an estimate of on-premises costs and equivalent Microsoft Azure services prices. Final Microsoft Azure costs will be based on your
actual usage of Azure services, and may be different from the TCO estimates. This document is for informational purposes only. Microsoft makes no warranties, express or implied,
in this summary.
Your estimated savings are $ 19,549,683 (78%)
over 3 year(s) with Microsoft Azure.

On-premises cost breakdown summary Azure cost breakdown summary

Category Costs
Category Web direct 1 Year 3 Years
Compute $19,681,307 cost Reserved VM Reserved VM

Hardware $11,493,625 Compute $5,256,000 $7,812,000 $4,958,000

Software $2,315,160
Electricity $1,317,022 Data center $0 $0 $0
Virtualization $4,555,500
Networking $42,577 $42,577 $42,577
Data Center $487,500
Storage $55,296 $55,296 $55,296
Networking $4,250,635
IT labor $607,768 $607,768 $607,768
Storage $159,744
Total $5,961,642 $8,517,642 $5,663,642
IT labor $634,139

Total $25,213,325

AZURE TCO SUMMARY

*The Azure Compute pre-purchase (CPP) plan offers you discounts up to 63 percent off standard prices on virtual machines in Azure,
for an upfront pre-purchase of 12 months of a particular instance (instance family, size, region, and operating system).
Estimated on-premises cost (three years) vs. estimated Azure cost (three years)

Compute cost

Hardware cost Web direct cost

Virtual Machine Costs Number of hours per month 730
Virtual machine density - Number of virtual cores 2 Average utilization 100%
that can be created per physical core
Virtual Machines Costs
Cost Per 2 Proc 32 Core 1000 GB RAM virtualization $35,365
A8v2 Standard (8 vCPU, 16 GB RAM) $0.4/ hr
server
Windows(Azure Hybrid Benefit)
Number of servers needed for 500 virtual machine(s) 125
SKU# AAA-21427
- 8 vCPU, 16 GB RAM, Compute
Number of virtual machine(s) needed 1,000
Cost Per 2 Proc 32 Core 1000 GB RAM virtualization $35,365
server Total virtual machine costs per month $146,000
Number of servers needed for 500 virtual machine(s) 125 Total web direct virtual machine costs over 3 $5,256,000
- 8 vCPU, 16 GB RAM, Compute year(s)
Total cost for virtualization server(s) $8,841,250 1 Year Reserved VM
Cost of maintaining virtualization server(s) - 10% of $884,125 Number of hours per month 730
cost of virtualization server(s)
Average utilization 100%
Total cost of maintaining server(s) over 3 year(s) $2,652,375
Virtual Machines Costs
Total hardware costs over 3 year(s) $11,493,625
F8 Standard (8 vCPU, 16 GB RAM) Windows(Azure $0.297/ hr
Hybrid Benefit)
Software cost Number of virtual machine(s) needed 1,000
Virtual Machine Costs Total 1-Year Reserved Cost over3 year(s) $7,812,000
Cost of Windows Data Center license per 2 Proc, 32 $18,521.28
3 Years Reserved VM
core, 1000 RAM virtualization server
Number of hours per month 730
Average utilization 100%

AZURE TCO SUMMARY

Number of servers needed for 500 virtual machine(s) 125 Virtual Machines Costs
- 8 vCPU, 16 GB RAM, Compute
F8 Standard (8 vCPU, 16 GB RAM) Windows(Azure $0.189/ hr
Total Windows licensing costs over 3 year(s) $2,315,160 Hybrid Benefit)
Number of virtual machine(s) needed 1,000
Electricity cost Total 3-Year Reserved Cost over 3 years $4,958,000
Price of electricity per kWh $0.1
Virtual Machine Costs
Power rating of 2 proc 32 core, 1000 GB RAM server 2,005 Watts
Total electricity cost consumed by 125 server(s) - 2 $18,295.62
proc, 32 core, 1000 GB RAM server per month
Power rating of 2 proc 32 core, 1000 GB RAM server 2,005 Watts
Total electricity cost consumed by 125 server(s) - 2 $18,295.62
proc, 32 core, 1000 GB RAM server per month
Total electricity costs over 3 year(s) $1,317,022

Virtualization cost
Per virtual machine, per month, cost to load balance, $52
backup and patch virtual machines
Number of virtual machine(s) 1,000
Virtual machine management cost per month $52,000
Virtualization software license cost $1,747,500
Virtual machine management cost per year $936,000
Total virtual machine management costs over 3 $4,555,500
year(s)

Total compute cost over 3 year(s) $19,681,307 Total Azure compute cost over 3 year(s) $4,958,000

AZURE TCO SUMMARY

Datacenter cost

Datacenter Compute cost Total Azure Data center costs over 3 year(s) $0

Number of rack units per rack 42

Virtual Machines Costs
Rack units required per 2 proc 32 core, 1000 GB 4
RAM server
Number of 2 proc 32 core, 1000 GB RAM server 500
Total number of rack units required 500
Rack units required per 2 proc 32 core, 1000 GB 4
RAM server
Number of 2 proc 32 core, 1000 GB RAM server 500
Total number of rack units required 500
Total number of rack units required for all server(s) 1,000.00
Number of racks required 24
Data Center construction cost per rack amortized $6,250
over 20 years
Total Data center compute costs over 3 year(s) $450,000

Datacenter storage cost

Rack mounting/installation cost $12,500
Total Data center storage costs over 3 year(s) $37,500

Total Data Center cost over 3 year(s) $487,500 Total Azure Data center costs over 3 year(s) $0

AZURE TCO SUMMARY

Networking cost

Networking cost Azure Networking cost

Total hardware + software costs over 3 year(s) $13,808,785 Total outgoing bandwidth needed/month $1,182.71
Network hardware and software costs assumed to be $3,452,196 Total outgoing bandwidth cost/month $1,182.71
25% of hardware and software costs over 3 year(s)
Total networking cost for 15 TB / Month over $42,577.38
Network maintenance cost assumed to be 20% of $690,439 3 year(s)
network hardware and software costs over 3 year(s)
Service provider cost/GB per month $0.20
Amount of bandwidth needed (TB) per month 15
Total service provider cost per month $3,000
Total network hardware and software cost over 3 $4,250,635
year(s)

Total estimated on-premises networking cost $4,250,635 Total estimated Azure networking cost $42,577.38
over 3 year(s)

Storage cost

Storage cost Azure storage cost

Hardware infrastructure Storage maintenance

AZURE TCO SUMMARY

 Local Disk/SAN-HDD Page Blob storage - LRS
Cost per GB $2 Usable storage volume (RAID 10 configuration) in 30,720.00
GB
Amount of HDD (RAID 10) storage needed (TB) 61,440.00
Storage cost per GB $0.05
Total storage procurement cost over 3 year(s) 122,880
Annual storage cost per usuable volume $18,432

Storage maintenance Number of storage transactions required per 300,000

usable volume
Storage maintenance cost (% of storage $36,864
procurement cost) over 3 year(s) Azure page blob transaction pricing per 10000 $0.00036
transactions
Total storage maintenance over3 year(s) $36,864
SKU# N9H-00439

Total annual transactions cost $0

Total LRS storage maintenance cost over 3 $55,296
year(s)
Total MySQL Storage cost for over3 year(s) $0

Total estimated on-premises storage cost $159,744 Total estimated Azure storage cost $55,296

IT labor cost

On-premises IT labor cost Azure IT labor cost

Number of IT admin hour(s) needed per year 4,227.60 Number of IT admin hour(s) needed per year 4,051.78
Hourly rate for IT administrator $50 Hourly rate for IT administrator $50.00

AZURE TCO SUMMARY

Total estimated on-premises IT labor cost $634,139 Total estimated Azure IT labor cost $607,768.00

AZURE TCO SUMMARY

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AZURE TCO SUMMARY