Total Cost of Ownership (TCO) Calculator

Estimate the cost savings you can realize by migrating your workloads to Azure

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Over 3 year(s) with Microsoft Azure, your estimated cost savings

could be as much as $653,512

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

1.2M

1M

800K

600K

400K

200K

0 1 Year 2 Years 3 Years

Total on-premises over 3 year(s)

TCO of on-premises environments tends to be Total Azure cost over 3 year(s)
driven by compute and data center costs. In Azure, certain cost categories decrease or go
away completely.

$1,309,292 Can we help you?

Total cost $655,780
Total cost
 5% 0%
68% Data 16% 1% 9% 56% Data 4% 23% 18%
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.

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 Hardware Software Electricity Data center
Networking Storage IT Labor

Compute Data center Networking Storage

IT Labor
600K

600K
400K

400K
200K

200K

$1,309,292
Cost over 3 year(s) $655,780
Cost over 3 year(s)

On-premises cost breakdown

summary Azure cost breakdown summary
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Category Cost
Category Cost
Compute $892,962.08
Hardware $632,224.00
Software $123,100.00 Compute $364,284.00
Electricity $42,166.08 Data Center $0.00
Virtualization $95,472.00
Networking $27,639.00
Data Center $68,917.56
Storage $148,856.83
Networking $213,237.39
IT Labor $115,000.23
Storage $19,174.40
IT Labor $115,000.23

Total $1,309,292.00
Total $655,780.00

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Estimated on-premises cost (3
year(s)) Estimated Azure cost (3 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 $5,059.50
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 $5,059.50
core, 16 GB RAM month
Total cost for virtualization $395,140.00
server(s) Total Azure Virtual Machines
cost $364,284.00
Cost of maintaining
virtualization server(s) - 20% of $79,028.00
cost of virtualization server(s) NOTE: For Azure compute costs, one 3 year
Reserved VM in use.
Total cost of maintaining $237,084.00
server(s) over three year(s)

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Total hardware cost over three $632,224.00
year(s)
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 three $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
GB RAM server 3,006.9 Watts
Total electricity cost for 2
server(s) - 32 core, 2000 GB $585.64
RAM server per month

Total electricity cost over $42,166.08

three year(s)

Virtualization cost

Virtualization software license $0.00

cost
Per virtual machine, per month,
cost to load balance, backup $26.52
and patch virtual machines
Number of virtual machines 100
Virtual machine management $2,652.00
cost per month
Virtual machine management
cost per year $31,824.00 Can we help you?
Total virtualization cost over $95,472.00
three year(s)

Total cost over three year(s) $892,962.08

Total Azure compute cost over $364,284.00
three year(s)

Data center cost

Azure data center cost

Compute cost

Number of rack units per rack 42 Total Azure data center cost
over three 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
Total number of rack units $16.00
required for all server(s)
Data center construction cost
per rack unit amortized over 20 $302.27
years
Data center compute cost $4,836.32

Total Data center compute $14,508.96

cost over three year(s)

Storage cost
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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 $54,408.60

over three year(s)

Total Data center cost over three $68,917.56

year(s)
Total Azure data center cost $0.00
over three year(s)

Networking cost
Azure networking cost

Total hardware + software cost $755,324.00

over three year(s)
Network hardware and
software cost assumed to be Total outgoing bandwidth
$113,298.60 needed per month 15 TB
15% of hardware and software
cost over three year(s) Total outgoing bandwidth cost
per month $767.75
Network maintenance cost
assumed to be 15% of network $16,994.79
hardware and software cost
over three year(s)
Service provider cost/GB per $0.15
month
Amount of bandwidth
needed (GB) per month 15,360

Total service provider cost per $2,304.00

month

Total networking cost over three $213,237.39

year(s)
Total Azure networking cost $27,639.00
over three year(s)

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Storage cost
Azure storage cost

Hardware

Local Disk/SAN-HDD Page Blob storage

Cost per GB $0.20
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 $16,588.80

cost $12,288.00 volume

Total Page Blob LRS storage

Backup maintenance cost over three $49,766.40
year(s)
Total backup and archive 122,880
volume in GB
HP LTO-7 Backup
BB873A
Backup volume per tape in
TB 6 Total backup and archive
volume in GB 122,880
Number of Tape drives 20
required Storage cost per GB $0.0224
Cost per Tape Drive $160.00
SKU# AAL-
31836
Backup and Archive cost over $3,200.00
three year(s)
Backup and Archive
maintenance cost over three $99,090.43
Storage Maintenance year(s)

Storage maintenance cost

(10% of storage procurement $3,686.40
cost) over three year(s)

Total storage maintenance $3,686.40

cost over three year(s)

Total storage cost over three $19,174.40

year(s)
Can
Total Azure storage
three year(s)
costwe
overhelp you?
$148,856.83
 IT labor cost
Azure IT labor cost

Number of IT admin hour(s)

needed per year 1,666.67
Hourly rate for IT $23.00
administrator Number of IT admin hour(s)
needed per year 1,666.67
Hourly rate for IT $23.00
administrator

Total IT labor cost over three $115,000.23

year(s)
Total Azure IT labor cost over $115,000.23
three year(s)

Total on-premises cost over three

year(s) $1,309,292.00 Total Azure cost over three
year(s) $655,780.00

A total savings of $653,512.00 with Microsoft Azure

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