The Azure Total Cost of Ownership (TCO) calculator helps organizations understand how much they could save by moving their workloads from on-premises infrastructure to the cloud. It offers a financial comparison between maintaining your current setup and migrating to Azure.
What is the TCO Calculator?
The TCO calculator compares your predicted costs in Azure against your estimated on-premises costs. These include:
- Hardware and software expenses, such as servers and operating systems
- Hidden costs, like electricity, real estate, cooling, and IT labor
How to Use the TCO Calculator
To get started:
- Enter Your Workloads
- Define the number and types of Servers, Databases, Storage, and Networking components you currently use or plan to use.
- Review and Customize Assumptions
- Adjust key factors such as:
- Electricity and labor costs
- IT administration costs per hour
- Network bandwidth pricing
- Geo-redundant storage
- Storage and database usage estimates
- Adjust key factors such as:
- Generate a Report
- The tool will provide a detailed comparison report of Azure costs versus on-premises costs.
- You can download, share, or save the report for future analysis.
Why Use the TCO Calculator?
Whether you’re in early planning stages or making a business case to decision-makers, the TCO calculator provides a clear financial model to guide your migration strategy. It helps identify potential cost savings and supports more informed budgeting and resource planning.
Want to explore this further? Check out cost reduction strategies in Azure, or the Azure Pricing Calculator for more detailed breakdowns of cloud expenses.
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