Exercise - Estimate the Total Cost of Ownership with the Azure TCO calculator

The pricing calculator and cost management advisor can help you predict and analyze your spend for new or existing services.

If you are starting to migrate to the cloud, a useful tool you can use to predict your cost savings is the Total Cost of Ownership (TCO) calculator. To use the TCO calculator, you need to complete four steps.

Step 1: Open the TCO calculator

Start by browsing to the Total Cost of Ownership calculator website.

Step 2: Define your workloads

Start by entering details about your on-premises infrastructure into the TCO calculator according to four groups:

Group Description
Servers Enter details of your current on-premises server infrastructure.
Databases Enter details of your on-premises database infrastructure in the Source section. In the Destination section, select the corresponding Azure service you would like to use.
Storage Enter the details of your on-premises storage infrastructure.
Networking Enter the amount of network bandwidth you currently consume in your on-premises environment.

Step 3: Adjust assumptions

Adjust the values of assumptions that the TCO calculator makes, which might vary between customers. To improve the accuracy of the TCO calculator, you should adjust the values so they match the costs of your current on-premises infrastructure. The assumptions you can customize include:

  • Virtual machine costs
  • Electricity costs
  • Storage costs
  • IT labor costs
  • Hardware costs
  • Software costs
  • Virtualization costs
  • Datacenter costs
  • Networking costs
  • Database costs

Step 4: View the report

The TCO calculator generates a detailed report based on the details you enter and the adjustments you make. The report allows you to compare the costs of your on-premises infrastructure with the costs of using Azure products and services to host your infrastructure in the cloud.

Diagram of two total cost of ownership pie charts: one for total on-premises costs of $30,702,495 covered mostly by datacenter costs, and another for Azure cost of $595,618 covered mostly by storage and networking costs.