Total Cost of Ownership (TCO) Calculator

In this lesson, you'll use the Total Cost of Ownership (TCO) Calculator to compare the cost of running a sample workload in your datacenter versus on Azure. This will help you understand the potential cost savings and the transition from a fixed cost structure to an ongoing monthly cost structure in the cloud.

Scenario

You are considering moving some on-premises workloads to the cloud and need to evaluate the potential cost savings over the next three years. The goal is to include all potential hidden costs of operating on-premises and in the cloud. The TCO Calculator will serve as a starting point for this analysis.

Let's say that:

You run 20 virtual machines (VMs) on Windows Server with VMware virtualization.
Another set of 30 VMs runs Linux with KVM virtualization.
You have a total of 100 TB of storage distributed across local disks and network-attached storage (NAS).
Your estimated outbound network bandwidth consumption is 10 TB per month.
Databases are part of the environment but will be omitted for this lesson.

The TCO Calculator involves three steps: defining your workloads, adjusting assumptions, and viewing the report.

Step 1: Define Your Workloads

Enter the specifications of your on-premises infrastructure into the TCO Calculator.

Go to the TCO Calculator.
Add Windows VMs Workload :
- Under Define your workloads , select Add server workload.
- Set the values as follows:
  - Name : Servers: Windows VMs
  - Workload : Windows/Linux Server
  - Environment : Virtual Machines
  - Operating system : Windows
  - Operating System License : Datacenter
  - VMs : 20
  - Virtualization : VMware
  - Core(s) : 4
  - RAM (GB) : 8
  - Optimize by : CPU
Add Linux VMs Workload :
- Select **Add server wor…