Managing costs effectively is crucial for businesses to stay within budget and maximize their investment in cloud resources. Azure provides powerful tools such as the Total Cost of Ownership (TCO) calculator and the Pricing Calculator, which help users estimate and manage their cloud expenses.
Understanding the TCO Calculator
The Azure Total Cost of Ownership (TCO) calculator helps businesses estimate the cost savings they can achieve by migrating their workloads to Azure. It compares the cost of running your on-premises infrastructure with the cost of using Azure services. This comparison includes expenses related to hardware, software, facilities, and administration.
How to Use the TCO Calculator
Define Your Workload:
- Start by specifying the details of your current on-premises infrastructure. This includes the number of servers, storage requirements, network components, and other relevant information.
Customize Cost Inputs:
- Enter the cost details for your on-premises setup. This may include hardware purchase, maintenance, power and cooling, and IT labor costs.
Review Azure Costs:
- The TCO calculator will automatically estimate the equivalent costs on Azure, considering virtual machines, storage, networking, and other services.
Analyze the Results:
- The tool will provide a detailed comparison, showing the potential savings over a specified period. This helps in making informed decisions about migrating to Azure.
By inputting these details into the TCO calculator, one can see a clear comparison of their current expenses versus the projected costs on Azure. The results might reveal significant savings in hardware maintenance and energy consumption, supporting the decision to move to the cloud.
Go to TCO Calculator Using the Link Below
https://azure.microsoft.com/en-us/pricing/tco/calculator/
Step 1
On Define your workload, click on Add server workload
On Workload 1
Click on the Operating system dropdown, select Windows
Leave the rest field at the default
Click on Add server workload
On Workload 2
Click on the Operating system dropdown, select Linux
Leave the rest field at the default
Step 2
On Databases click on Add database
Click on the Operating system dropdown, select Windows
Click on the Database dropdown, select Microsoft SQL Server
Leave the rest field at the default
Click on Add database
On Database 2
Click on the Microsoft SQL Server dropdown, select Linux
Leave the rest field at the default
Step 3
On Storage, click on Add storage
- Leave the field at the default
Step 4
Networking
On the Destination Region dropdown, select East US
- Click on Next
Step 5
Adjust Assumptions
Leave all fields in Adjust Assumptions at default
Click on Next
Step 6
View Report
- The estimated cost savings when using Microsoft Azure is displayed
The cost difference between running your workload on-premise and on Azure is displayed
The blue bar represents on-premise, while the green bar represents Azure.
Step 7
Save and Share Cost Estimate
You can save your estimate
You can export your estimate
You can share
Click on export and select format
Azure Pricing Calculator
The Azure Pricing Calculator allows users to estimate the cost of specific Azure services based on their requirements. This tool is essential for planning and budgeting, providing a detailed breakdown of costs for various Azure services.
How to Use the Pricing Calculator
Click on Azure pricing calculator
Select Azure Services:
- Choose the services you plan to use. Let us choose Storage
Configure Service Details:
- Click on add to estimate to specify the configuration for each service, including region, instance type, storage capacity, and any additional options like reserved instances or software licenses.
- The calculator will provide a detailed estimate of the monthly costs based on the selected configurations.
Export and Share:
- You can export and share the cost estimates with your team for budgeting and planning purposes.
By using the Azure Pricing Calculator, you can configure each service according to your needs and get a detailed estimate of the monthly expenses. This helps you plan your budget effectively and avoid unexpected costs.
For comprehensive cost management, it's beneficial to use both the TCO and Pricing Calculators together.
Regularly revisit the Pricing Calculator to adjust estimates based on actual usage and to plan for scaling needs.
Effective cost management on Azure requires a strategic approach using the right tools. The TCO and Pricing Calculators provide valuable insights into potential savings and detailed cost estimates, empowering businesses to make informed decisions and optimize their cloud investments. By leveraging these tools, you can achieve better financial planning, avoid unexpected expenses, and maximize the value of your Azure deployment.
Top comments (2)
Great read, very well explained!
Thank you Piya