Total Cost of Ownership (TCO) Calculator

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

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Over 5 year(s) with Microsoft Azure, your estimated cost savings

could be as much as $1,530,977

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

3M

2.5M

2M

1.5M

1M

500K

0 1 Year 2 Years 3 Years 4 Years 5 Years

Total on-premises over 5 year(s)

TCO of on-premises environments tends to be Total Azure cost over 5 year(s)
driven by compute and data center costs. In Azure, certain cost categories decrease or go
away completely.

$3,064,816
Total cost $1,533,839
Total cost

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 5% 0%
77% Data 11% 1% 7% 68% Data 3% 16% 12%
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 on-premises environment are consolidated
and decrease with the efficiency that comes
with the cloud.
Total Azure cost breakdown
In Azure, several of the cost categories from
the on-premises environment are consolidated
and decrease with the efficiency that comes
with the cloud.

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 Hardware Software Electricity Data center
Networking Storage IT Labor
1.2M
Compute Data center Networking Storage
IT Labor
1M 1.2M

800K 1M

600K 800K

400K 600K

200K 400K

200K

$3,064,816
Cost over 5 year(s) $1,533,839
Cost over 5 year(s)

On-premises cost breakdown

summary Azure cost breakdown summary

Category Cost
Category Cost
Compute $2,367,870.80
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 Hardware $904,984.00 Compute $1,044,859.20
Software $184,650.00
Electricity $85,420.80 Data Center $0.00
Virtualization $169,264.00 Networking $49,152.00
Database $1,023,552.00
Storage $248,160.97
Data Center $139,044.20
IT Labor $191,667.05
Networking $326,201.86
Storage $21,632.00
IT Labor $210,067.05

Total $3,064,816.00
Total $1,533,839.00

Estimated on-premises cost (5

year(s)) Estimated Azure cost (5 year(s))

Compute cost
Azure compute cost

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Hardware cost
 Virtual Machines cost
Cost per 2 proc 4 core, 16 GB
RAM physical server for $7,169.00
Windows Number of hours per month 730
Number of servers required 8 F8sv2 Standard (8 core, 16 GB
RAM) Windows (Azure Hybrid SKU# AAA-
Total cost for physical 57328
$57,352.00 Benefit)
server(s)
Number of virtual machines 50
Cost of maintaining physical Total virtual machine cost per $6,465.00
server(s) - 20% of cost of $11,470.40 month
physical server(s)
F8sv2 Standard (8 core, 16 GB SKU# AAA-
Virtual machine density - RAM) Linux 57344
Number of virtual cores that 3 Number of virtual machines 50
can be created per physical Total virtual machine cost per
core month $6,465.00

Cost per 4 proc 32 core, 2000

GB RAM virtualization server $98,785.00
for Windows Total Azure Virtual Machines
cost $775,800.00
Number of servers needed
for 50 virtual machine(s) - 8 2
core, 16 GB RAM NOTE: For Azure compute costs, 3 year
Reserved VM and two 1 year Reserved VM in
Cost per 4 proc 32 core, 2000 use.
GB RAM virtualization server $98,785.00
for Linux
Number of servers needed SQL Database cost
for 50 virtual machine(s) - 8 2
core, 16 GB RAM
General Purpose Single Gen5 8 $0.65208 /hr
Total cost for virtualization vCores (Azure Hybrid Benefit)
$395,140.00 SKU# AAD-
server(s)
17817
Cost of maintaining Instance Count 8
virtualization server(s) - 20% Cost Per Month $560.54
of cost of virtualization $79,028.00
server(s)
Total cost of maintaining Total SQL Database cost over $269,059.20
$452,492.00 five year(s)
server(s) over five year(s)

Total hardware cost over five $904,984.00

year(s)

Software cost

Cost of Windows datacenter

license per 4 proc, 32 core,
2000 GB RAM virtualization $49,240.00
server
Number of servers needed
for 50 virtual machine(s) - 8 2
core, 16 GB RAM
Cost of Windows datacenter
license per 2 proc, 4 core, 16 $6,155.00
GB RAM physical machine
Number of licenses needed 8
Total software license cost $147,720.00
Total Software Assurance cost $36,930.00
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Total software cost over five $184,650.00
year(s)

Electricity cost

Price of electricity per kWh $0.1334

Power rating of 32 core, 2000 3,006.9
GB RAM server Watts
Total electricity cost for 2
server(s) - 32 core, 2000 GB $585.64
RAM server per month
Power rating of 32 core, 2000 3,006.9
GB RAM server Watts
Total electricity cost for 2
server(s) - 32 core, 2000 GB $585.64
RAM server per month
Power rating of 4 core, 16 GB
RAM server 324 Watts
Total electricity cost
consumed by 8 server(s) - 4 $252.40
core, 16 GB RAM server per
month

Total electricity cost over five

year(s) $85,420.80

Virtualization cost

Virtualization software license

cost $10,144.00

Per virtual machine, per

month, cost to load balance, $26.52
backup and patch virtual
machines
Number of virtual machines 100
Virtual machine management
cost per month $2,652.00

Virtual machine management $31,824.00

cost per year

Total virtualization cost over

five year(s) $169,264.00

SQL Database cost

Total CPU cores 64

SQL Server Enterprise License
cost per 2 cores $14,256.00
Enterprise cores 64
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Total license cost $456,192.00
Enterprise Software Assurance
cost per 2 cores $3,546.00
Enterprise cores 64
Total Software Assurance cost $567,360.00

Total SQL Database cost over $1,023,552.00

five year(s)

NOTE: A minimum of four core licenses are

required for each physical processor on the
server or VM

Total cost over five year(s) $2,367,870.80

Total Azure compute cost $1,044,859.20
over five year(s)

Data center cost

Azure data center cost

Compute cost
Total Azure data center cost $0.00
over five year(s)
Number of rack units per rack 42
Rack units required per 32
core, 2000 GB RAM server 4
Number of 32 core, 2000 GB 2
RAM server
Total number of rack units
required 8

Rack units required per 32

core, 2000 GB RAM server 4
Number of 32 core, 2000 GB 2
RAM server
Total number of rack units
required 8

Rack units required per 4 2

core, 16 GB RAM server
Number of 4 core, 16 GB 8
RAM server
Total number of rack units
required 16

Total number of rack units 32

required for all server(s)
Data center construction cost
per rack unit amortized over $302.27
20 years
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Data center compute cost $9,672.64

Total Data center compute

cost over five year(s) $48,363.20

Storage cost

Total number of rack units 60

required for all storage
Number of rack units for 60
DAS or SAN
Rack mounting/installation
cost $18,136.20

Total Data center storage

cost over five year(s) $90,681.00

Total Data center cost over five

year(s) $139,044.20
Total Azure data center cost $0.00
over five year(s)

Networking cost
Azure networking cost

Total hardware + software

cost over five year(s) $1,089,634.00
Total outgoing bandwidth 15 TB
Network hardware and needed per month
software cost assumed to be $163,445.10
15% of hardware and Total outgoing bandwidth cost
per month $819.20
software cost over five year(s)
Network maintenance cost
assumed to be 15% of $24,516.76
network hardware and
software cost over five year(s)
Service provider cost/GB per
month $0.15
Amount of bandwidth 15,360
needed (GB) per month
Total service provider cost per $2,304.00
month

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Total networking cost over five
$326 201 86
 g
year(s) $326,201.86
Total Azure networking cost $49,152.00
over five year(s)

Storage cost
Azure storage cost

Hardware
Page Blob storage
Local Disk/SAN-HDD
Cost per GB $0.20 Usable storage volume in GB 30,720
Storage (RAID 10
configuration) volume in GB 61,440 Storage cost per GB/month $0.045
Annual storage cost per usable $16,588.80
volume
Total storage procurement
cost $12,288.00
Total Page Blob LRS storage
maintenance cost over five $82,944.00
Backup year(s)

Total backup and archive

volume in GB 122,880 Backup
HP LTO-7
BB873A Total backup and archive
Backup volume per tape in volume in GB 122,880
6
TB
Number of Tape drives Storage cost per GB $0.0224
required 20
Cost per Tape Drive $160.00 SKU# AAL-
31752

Backup and Archive cost over $3,200.00

five year(s) Backup and Archive
maintenance cost over five $165,150.72
year(s)
Storage Maintenance
SQL Database Server
Storage maintenance cost storage
(10% of storage procurement $6,144.00
cost) over five year(s)
Usable storage volume in GB 8
Price per GB/Month $0.017
Active DB Storage $0.138
Total storage maintenance Cost/Month
cost over five year(s) $6,144.00
Annual storage cost per usable
volume $13.25

Total SQL Database Server

Storage cost over five year(s) $66.25

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 SQL Database Backup
storage

Billable backup storage volume

in GB 0
Price per GB/Month $0.00
Backup Storage Cost/Month $0.24
Annual storage cost per usable
volume $0.00

Total SQL Database Backup

Storage Cost over five year(s) $0.00

Total storage cost over five

$21,632.00
year(s)
Total Azure storage cost over
$248,160.97
five year(s)

IT labor cost
Azure IT labor cost

Number of IT admin hour(s) 1,826.67

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

Total IT labor cost over five $210,067.05

year(s)
Total Azure IT labor cost over
five year(s) $191,667.05

Total on-premises cost over five

year(s) $3,064,816.00 Total Azure cost over five year(s) $1,533,839.00

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A total savings of $1,530,977.00 with Microsoft Azure

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