Scribd
Upload
32 views2 pages

Cloud Computing TCO

The document discusses calculating the total cost of ownership for cloud computing by first considering costs of current on-premises infrastructure like hardware, facilities, software, maintenance, security, employees, upgrades and downtime. It notes that cloud costs may not automatically be lower and advises understanding where large cloud costs come from to streamline spending.

Uploaded by

Kashif Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
32 views2 pages

Cloud Computing TCO

The document discusses calculating the total cost of ownership for cloud computing by first considering costs of current on-premises infrastructure like hardware, facilities, software, maintenance, security, employees, upgrades and downtime. It notes that cloud costs may not automatically be lower and advises understanding where large cloud costs come from to streamline spending.

Uploaded by

Kashif Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Cloud Computing TCO

Your cloud TCO (Total Cost of Ownership) calculations should include the cost of
software and any existing infrastructures. You need to have a flexible mindset when
it comes to creating your TCO model, as this model may not end up completely
reflecting the actual costs over time. Make sure you are ready to account for
anything unforeseen and that you are adaptable to any changes in your cloud
needs.  

Calculate your current on-premises infrastructure costs 

Firstly, you should consider the costs of your current on-premises solution.  

Consider the costs of these factors:  


 Hardware and Infrastructure - The costs of hardware that provide power to
your on-premises applications such as physical servers, supplies, replacement
parts etc.  
 Datacentre - You need to consider things such as how much power, cooling,
and space requirements for any hardware and infrastructure.  
 Disaster Recovery - How much does your disaster recovery system cost to
maintain and manage?  
 Software – The costs for operating systems such as virtualisation Microsoft
Windows and other management and monitoring tools. 
 Maintenance - How much does servicing, operating, and maintaining your
organisation's system cost including both in-house and sub-contracted
maintenance?  
 Security - What is the total cost of securing of infrastructure? Including
everything from physical security to firewalls etc?  
 Employees - How many people are involved in infrastructure, Systems
Datacenter networking, etc. and how much are their charges?  
 Upgrades - What would upgrade costs to the system look like if required?  
 Other Costs - How much does it cost the organisation if there is server
downtime?  
After working out the picture of how much current on-premises infrastructure is
costing your organization, you need to move on to calculating the cost of operating
your application on the cloud. In this instance, most of the costs that were
considered in your on-premises calculations won't apply here as they are moved to
your cloud service provider. But it's important to note here that this does not mean
that a cloud solution will automatically provide greater cost savings over on-premises
infrastructure.  
When an organisation moves to the cloud, they often think that their bill for cloud
services will be cheaper. However, the on-demand nature of the cloud means that
your cloud bill can greatly increase in instances such as developers deploying
instances quickly. Understanding where the large costs come from in the cloud is
crucial when trying to streamline your cloud costs.   

You might also like