Practical Use of Total Cost Ownership and Pricing Calculator for Cost Management

• Managing costs is crucial when deploying and maintaining Azure infrastructure.
• The Total Cost of Ownership (TCO) Calculator and the Azure Pricing Calculator are essential tools for cost management.
• Azure Cost Management is a free solution offered to Azure cloud customers via the Azure portal.
• It provides information about your overall costs and utilisation across all Azure services and Azure Marketplace products.
• The solution provides insights and reports, and can also provide data about your organisation’s use of other cloud providers.

Note;

• Azure’s pricing model is based on a pay-as-you-go system.
• This means you only pay for the services you use, but it also implies that costs can escalate quickly if not managed effectively.
• The cost of Azure services varies depending on several factors such as the type of service, the region in which your resources are deployed, and the tier of service you choose.
• Here is a step-by-step guide on how to use these tools effectively.

Section 1; Using Total Cost Ownership (TCO) Calculator
Total cost ownership is the purchase price of an asset plus the cost of operation.
Assessing the total cost of ownership means taking a bigger picture of what the product and its value will be over time. The total cost of ownership is considered by companies and individuals when they are looking to buy assets and make investments in capital projects. Companies use total cost of ownership over the long term as a framework for analyzing business deals.

Here are some of the ways that understanding the total cost of ownership can help in cloud computing.

Cost Analysis;

• The TCO provides a holistic view of cloud expenditures, considering both direct and indirect costs.
• A comprehensive understanding of Azure cost, therefore, helps businesses to accurately forecast their cloud spending, allocate budgets effectively, and avoid unexpected costs.

Optimal Resource Allocation;

• A deep understanding of Azure costs can also aid in optimal resource allocation.
• You can identify underutilized resources, eliminate waste, and allocate resources effectively based on usage patterns and business needs.
• This not only optimizes costs but also enhances operational efficiency.

Cost Optimization and Control;

• Lastly, a thorough understanding of Azure cost is essential for optimizing and controlling your expenses.
• With Azure’s cost management tools, businesses can monitor, analyse, and optimize their cloud spending, leading to significant cost savings and improved ROI.

Step 1; Navigate to TCO Calculator Using Google Browser

• Click Total Cost Ownership (TCO) Calculator (Microsoft Azure Link) Step 2; Define Your Workload 1. Server Click on Add Server Workload Workload 1
• On the dropdown menu of the operating system,
• Choose windows
• Leave others at default
• Click on Add Server Workload Workload 2
• On the dropdown menu of the Operating system, select Linux
• Leave other parameters at default Step 3; Databases
• Click on Add Database Database 1
• On the dropdown menu of the database, choose Microsoft SQL Server
• On the dropdown menu of Operating System, choose Windows
• Leave other parameters at default
• Click on the + icon on the left corner side to get to Database 2 Database 2
• On the dropdown menu of Database, choose Microsoft SQL Server
• On the dropdown menu of Operating System, choose Linux
• Leave others at default Step 4; Storage
• Click on Add Storage
• Leave other parameters at default Step 5; Networking
• On the dropdown menu of Destination Region, choose Central US
• Leave others at default
• Click on Next Step 6; Adjustment of Assumptions
• Leave all Adjust Assumptions at default
• Click on Next Step 7; View Your Report
• The pricing calculator will display the overall estimated cost for 5 years for each deployed service
• It is important to review the breakdown of the cost to have a complete understanding of your Azure bill
• You can now see the difference between running your workload on-premise and on Azure
• The green bar represents the Azure
• The blue bar represents on-premise Step 8; Save and Share Your Estimate
• Save your estimate for future references
• You can export it in PDF format and share it with your colleagues
• To save the estimate, Click on Export and select your format choice Section 2; Using the Azure Pricing Calculator
• Click on the Azure pricing Calculator on the left-side corner
• Select the Azure Services you want to use for example Storage
• Configure Service Settings
• Specify in detail the configurations for each service (Storage)
• Estimate the usage by inputting your expected usage (Storage capacity)
• Price Review, the calculator will generate the overall breakdown of the estimated cost.
• Save and Share the cost estimate in various formats for sharing with friends In Summary, with effective usage of the Azure Pricing Calculator and TCO Calculator, you can make accurate decisions about migrating to Azure, maximize your cloud costs, and achieve better financial management for your IT infrastructure.