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DEMO: Using the Azure TCO Calculator

In this quick demonstration, I’m going to show you how to use the Azure TCO Calculator.


In this lecture, the focus is on demonstrating the use of the Azure Total Cost of Ownership (TCO) Calculator. The distinction between this tool and the Pricing Calculator is clarified; the TCO Calculator is designed to estimate the cost savings achieved by moving on-premises resources to Microsoft Azure. It is emphasized that this tool not only gives an idea of the potential financial benefits of such a migration but also guides through the cost comparison process.

The lecture details a three-step process:

  1. Defining the workloads to be moved to Azure.
  2. Adjusting assumptions to align with the specific on-prem environment.
  3. Viewing the report that is generated based on the provided data.

The demonstration uses default values for simplicity, but the flexibility of the calculator is highlighted, encouraging students to explore the tool with different options post-course. The process of entering details about servers, databases, storage, and networking infrastructure to be migrated is shown. An example is given with an on-premises server workload, which includes a set of physical servers with specific configurations, such as CPU, memory, and optimization preferences.

In the databases section, the calculator allows for the specification of the type of SQL Database service in Azure that the workload will be moved to, along with other database characteristics like size and concurrent logins. Similarly, the storage section allows for detailing the type and quantity of data storage that will be migrated, and the network section captures the existing network bandwidth usage.

The next part of the demonstration involves adjusting the assumptions that the calculator uses to provide cost estimates. The importance of accurately reflecting the current on-premises environment is stressed, as it significantly impacts the accuracy of the cost savings report generated by the calculator.

Finally, the lecture concludes by illustrating how the calculator presents a report, which, in the example given, suggests a substantial cost saving over a five-year period post-migration to Azure. This report includes a breakdown of costs, both on-prem and in Azure, and allows for downloading, sharing, or saving for further analysis.

The primary takeaway from this lecture is the capability to estimate the financial implications of moving on-premises workloads to Azure and the importance of accurate input for precise savings calculations.

© 2023 Thomas J Mitchell / TomTeachesIT