Total Cost of Ownership (TCO) Calculator

Learn about the Azure TCO Calculator with a small demo explaining its use case.

Before we go into detail about the Azure TCO Calculator, we should understand what the “total cost of ownership” means. It’s an estimation of the expenses associated with a product or piece of equipment.

Azure offers us a web-based calculator to estimate the costs before migrating our data and applications to Azure and predict the savings it will offer. It helps us understand the cost areas that affect our applications today, such as server hardware, software licenses, electricity, and labor.

To estimate the cost of our infrastructure setup using Azure TCO, the following steps have to be followed:

  • Define your workloads: We have to define the details of our on-premises server infrastructure such as OS and VM count.

  • Adjust assumptions: We have to update and customize costs, like electricity and storage, to give an ideal state of how our particular on-premise situation looks.

  • View report: This defines the net output, and what it would look like.

    Note: You’ll see these sections in depth in the demo.

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