Total Cost of Ownership (TCO) Calculator
Estimate the cost savings you can realize by migrating your workloads to Azure
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Over 5 year(s) with Microsoft Azure, your estimated cost savings
could be as much as $751,294
Total on-premises vs. Azure cost over time
Savings from running workloads in Azure accrue over time. The following shows how those
savings add up over years.
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On-premises cost Microsoft Azure cost
2M
1.5M
1M
500K
0 1 Year 2 Years 3 Years 4 Years 5 Years
Total on-premises over 5 year(s)
TCO of on-premises environments tends to be Total Azure cost over 5 year(s)
driven by compute and data center costs. In Azure, certain cost categories decrease or go
away completely.
$2,472,948
Total cost $1,721,654
Total cost
5% 0%
68% Data 15% 1% 12% 66% Data 3% 14% 17%
Compute center Networking Storage IT Labor Compute center Networking Storage IT Labor
Total on-premises cost breakdown
In Azure, several of the cost categories from the Total Azure cost breakdown
on-premises environment are consolidated and In Azure, several of the cost categories from the
decrease with the efficiency that comes with the on-premises environment are consolidated and
cloud. decrease with the efficiency that comes with the
cloud.
Hardware Software Electricity Data center
Networking Storage IT Labor
Compute Data center Networking Storage
1.2M IT Labor
1M
1.2M
800K
1M
600K
800K
400K
600K
200K
400K
200K
$2,472,948
Cost over 5 year(s) $1,721,654
Cost over 5 year(s)
On-premises cost breakdown
summary Azure cost breakdown summary
Category Cost
Category Cost
Compute $1,672,903.20
Hardware $1,185,420.00
Software $123,100.00 Compute $1,139,994.00
Electricity $105,415.20 Data Center $0.00
Virtualization $258,968.00
Networking $46,065.00
Data Center $126,953.40
Storage $248,094.72
Networking $363,959.70
IT Labor $287,500.00
Storage $21,632.00
IT Labor $287,500.00
Total $2,472,948.00
Total $1,721,654.00
Estimated on-premises cost (5
year(s)) Estimated Azure cost (5 year(s))
Compute cost
Azure compute cost
Hardware cost
Virtual machine density -
Number of virtual cores that 3
Virtual Machines cost
can be created per physical
core
Number of hours per month 730
Cost per 4 proc 32 core, 2000
GB RAM virtualization server $98,785.00 F8sv2 Standard (8 core, 16 GB SKU# AAD-
for Windows RAM) Windows (Azure Hybrid 10155
Number of servers needed Benefit)
for 50 virtual machine(s) - 8 2 Number of virtual machines 50
core, 16 GB RAM Total virtual machine cost per $6,333.300
month
Cost per 4 proc 32 core, 2000
GB RAM virtualization server $98,785.00 F8sv2 Standard (8 core, 16 GB SKU# AAD-
for Linux RAM) Linux 10188
Number of servers needed Number of virtual machines 50
for 50 virtual machine(s) - 8 2 Total virtual machine cost per $6,333.300
core, 16 GB RAM month
Cost per 4 proc 32 core, 2000 F8sv2 Standard (8 core, 16 GB SKU# AAD-
GB RAM virtualization server $98,785.00 RAM) Linux 10188
for Linux Number of virtual machines 50
Number of servers needed Total virtual machine cost per $6,333.300
for 50 virtual machine(s) - 8 2 month
core, 16 GB RAM
Total cost for virtualization $592,710.00
server(s) Total Azure Virtual Machines $1,139,994.00
cost
Cost of maintaining
virtualization server(s) - 20% of $118,542.00
cost of virtualization server(s)
Total cost of maintaining $592,710.00
server(s) over five year(s)
NOTE: For Azure compute costs, 3 year
Total hardware cost over five $1,185,420.00 Reserved VM and two 1 year Reserved VM in
year(s) use.
Software cost
Cost of Windows datacenter
license per 4 proc, 32 core, $49,240.00
2000 GB RAM virtualization
server
Number of servers needed
for 50 virtual machine(s) - 8 2
core, 16 GB RAM
Total software license cost $98,480.00
Total Software Assurance cost $24,620.00
Total software cost over five $123,100.00
year(s)
Electricity cost
Price of electricity per kWh $0.1334
Power rating of 32 core, 2000 3,006.9 Watts
GB RAM server
Total electricity cost for 2
server(s) - 32 core, 2000 GB $585.64
RAM server per month
Power rating of 32 core, 2000 3,006.9 Watts
GB RAM server
Total electricity cost for 2
server(s) - 32 core, 2000 GB $585.64
RAM server per month
Power rating of 32 core, 2000 3,006.9 Watts
GB RAM server
Total electricity cost for 2
server(s) - 32 core, 2000 GB $585.64
RAM server per month
Total electricity cost over five $105,415.20
year(s)
Virtualization cost
Virtualization software license $20,288.00
cost
Per virtual machine, per month,
cost to load balance, backup $26.52
and patch virtual machines
Number of virtual machines 150
Virtual machine management $3,978.00
cost per month
Virtual machine management $47,736.00
cost per year
Total virtualization cost over $258,968.00
five year(s)
Total cost over five year(s) $1,672,903.20
Total Azure compute cost over $1,139,994.00
five year(s)
Data center cost
Azure data center cost
Compute cost
Number of rack units per rack 42 Total Azure data center cost
over five year(s) $0.00
Rack units required per 32 4
core, 2000 GB RAM server
Number of 32 core, 2000 GB 2
RAM server
Total number of rack units $8.00
required
Rack units required per 32 4
core, 2000 GB RAM server
Number of 32 core, 2000 GB 2
RAM server
Total number of rack units $8.00
required
Rack units required per 32 4
core, 2000 GB RAM server
Number of 32 core, 2000 GB 2
RAM server
Total number of rack units $8.00
required
Total number of rack units
required for all server(s) $24.00
Data center construction cost
per rack unit amortized over 20 $302.27
years
Data center compute cost $7,254.48
Total Data center compute $36,272.40
cost over five year(s)
Storage cost
Total number of rack units 60
required for all storage
Number of rack units for DAS 60
or SAN
Rack mounting/installation $18,136.20
cost
Total Data center storage cost $90,681.00
over five year(s)
Total Data center cost over five $126,953.40
year(s)
Total Azure data center cost $0.00
over five year(s)
Networking cost
Azure networking cost
Total hardware + software cost $1,308,520.00
over five year(s)
Network hardware and
software cost assumed to be Total outgoing bandwidth 15 TB
15% of hardware and software $196,278.00 needed per month
cost over five year(s) Total outgoing bandwidth cost
per month $767.75
Network maintenance cost
assumed to be 15% of network $29,441.70
hardware and software cost
over five year(s)
Service provider cost/GB per
month $0.15
Amount of bandwidth 15,360
needed (GB) per month
Total service provider cost per $2,304.00
month
Total networking cost over five $363,959.70
year(s)
Total Azure networking cost $46,065.00
over five year(s)
Storage cost
Azure storage cost
Hardware
Local Disk/SAN-HDD
Cost per GB $0.20 Page Blob storage
Storage (RAID 10 61,440
configuration) volume in GB Usable storage volume in GB 30,720
Storage cost per GB/month $0.045
Total storage procurement Annual storage cost per usable
$12,288.00 volume $16,588.80
cost
Backup Total Page Blob LRS storage
maintenance cost over five $82,944.00
year(s)
Total backup and archive 122,880
volume in GB
HP LTO-7
BB873A
Backup
Backup volume per tape in 6
TB Total backup and archive 122,880
Number of Tape drives 20 volume in GB
required
Cost per Tape Drive $160.00 Storage cost per GB $0.0224
SKU# AAL-
31836
Backup and Archive cost over $3,200.00
five year(s)
Backup and Archive
maintenance cost over five $165,150.72
Storage Maintenance year(s)
Storage maintenance cost
(10% of storage procurement $6,144.00
cost) over five year(s)
Total storage maintenance $6,144.00
cost over five year(s)
Total storage cost over five $21,632.00
year(s)
Total Azure storage cost over $248,094.72
five year(s)
IT labor cost
Azure IT labor cost
Number of IT admin hour(s) 2,500
needed per year
Hourly rate for IT $23.00
administrator Number of IT admin hour(s)
needed per year 2,500
Hourly rate for IT $23.00
administrator
Total IT labor cost over five $287,500.00
year(s)
Total Azure IT labor cost over $287,500.00
five year(s)
Total on-premises cost over five
year(s) $2,472,948.00 Total Azure cost over five year(s) $1,721,654.00
A total savings of $751,294.00 with Microsoft Azure
