Total Cost of Ownership (TCO) Calculator Preview
azure calculator

The Microsoft Azure Total Cost of Ownership (TCO) calculator provides an easy way to compare on-premises infrastructure costs with potential Azure costs.

The calculator allows a user to describe their on-premises environment in terms of physical or virtual server configurations along with storage and networking requirements. The user may also choose a desired Azure deployment region and a preferred currency as input. Once the user has provided the details of their on-premises environment, the TCO calculator estimates and compares on-premises and Azure costs over a three-year period.

On-premises cost estimates
Hardware costs Based on the user’s description, the calculator uses estimated market rates to project the costs of requisite physical hardware. The calculator also adds a cost for maintaining the physical hardware to compute the total estimated hardware costs.
Software costs If the user specifies Windows as an operating system for their environment, then the calculator provides an estimate of the Windows licensing costs based on the number of cores required by the user’s environment.
Electricity costs Based on the user’s description, the calculator also estimates the approximate electricity consumption costs. This is done by allocating a power rating to the user’s hardware configuration and then multiplying it with an estimate of the power consumed and an industry standard rate for power consumption.
Data center costs Based on the user’s description, the calculator estimates the requisite amount of normalized rack space. The calculator then uses an estimated per-unit rack space cost to project the data center cost for the on-premises environment.
Networking costs Networking hardware and software costs are estimated to be a fixed percentage of the on-premises hardware and software costs. The calculator also adds a service provider cost based on the outbound bandwidth requirements specified by the user.
Storage costs

The calculator computes storage cost by multiplying an estimated market rate for DAS/SAN, NAS and Blob storage by the amount of disk space specified by the user. In addition to storage, user can estimate current backup and archive volume.

Since most enterprise storage systems come with custom software, the calculator also accounts for maintaining storage cost that includes rack, tape and administration cost.

IT labor costs Based on the user’s description, the calculator estimates the number of IT administrator man-hours that will be required to maintain the on-premises environment. The number of man-hours are then multiplied by an industry standard hourly rate to estimate the total IT labor costs for the user.
Virtualization costs If the user’s description includes virtual machines, the calculator uses an industry standard per virtual machine management rate to estimate the total virtualization costs. This cost represents an estimate of the hypervisor costs and virtual machine management software costs for the user’s environment.
Azure cost estimates
Virtual machine costs – Web direct Based on the user’s description, the TCO calculator identifies the most cost effective Azure virtual machine that will match the user’s on-premises compute needs. The Web direct rates represent the latest pay-as-you-go virtual machine pricing available to all Azure customers.
Virtual machine costs – Compute Pre-Purchase via Enterprise Agreement program This section displays pricing for Azure customers who have signed an Enterprise Agreement with Microsoft and are willing to commit to hosting virtual machines on Azure for a one-year or three-year period. Please contact a Microsoft sales representative to receive more information on this offer and its pricing.
Networking costs Based on the user’s requirements, the calculator uses latest Azure bandwidth pricing to display the Azure bandwidth costs.
Storage costs Based on the user’s requirements, the calculator uses latest Azure storage pricing to display the Azure storage costs.
IT labor costs Based on the user’s description, the calculator estimates the number of IT administrator man-hours that will be required to maintain the user’s Azure virtual machines. This cost is generally lower than on-premises IT labor costs because maintaining virtual machines on Azure typically requires less effort than maintaining on-premises servers.