Which of the following contribute to total cost of ownership of a workload running in the AWS Cloud

Understanding AWS Total Cost of Ownership (TCO)

Which of the following contribute to total cost of ownership of a workload running in the AWS Cloud

When deciding whether to migrate your critical workloads to the Amazon Web Services (AWS) cloud, it can be difficult to understand what your full scope of spending will be. AWS total cost of ownership (TCO) varies from organization to organization, as many have differing compliance and security requirements, customer expectations for service and availability, and DevOps goals. A look beneath the hood of your own company’s workloads, application interdependencies, and licensing requirements will yield a good ballpark figure of where your AWS spending may lie, but not the full picture.

Mapping the Full Picture of AWS Total Cost of Ownership

To achieve the full view of AWS total cost of ownership (TCO), your company must first have a good perspective of what your current TCO is, whether that is for an on-premises environment or in a third-party datacenter. Only once you have these numbers will you be able to do an accurate comparison between that and the intended AWS environment, and what adjustments will need to be made prior to the migration. The problem is that many companies attempt to do this TCO assessment manually, which in turn creates bottlenecks, inaccurate estimates and ultimately slows down the decision process. Oftentimes, the results are based on an over-provisioned infrastructure, which then inflates their estimate of potential future public cloud costs. As a result, simply lifting and shifting the current infrastructure to the cloud will not yield the benefits that they are seeking.

To assess the true potential cost, utilization information has to be mapped to a right-sized environment. Only by doing this can organizations optimize IT infrastructure costs and increase business agility. There are many prescriptive approaches to determining your existing TCO for your IT systems, as well as tools to assist in this work, but such an assessment should also be inclusive of conversations among your business and its leadership about what the ultimate goals are for the AWS cloud. Simply lowering IT costs in the cloud won’t always be the answer – what do you want to achieve by lowering those costs?

Get InterVision’s Assessment of AWS Total Cost of Ownership

InterVision is proud to have recently announced a free, Pre-Migration Cost Assessment Service to help organizations understand the potential cost savings when moving on-premises IT infrastructure to the cloud. Our assessment answers the following questions:

  • What will it cost to run my current workloads in the cloud on AWS?
  • What will it cost to move my current workload to the cloud?
  • What will I need to provision based on my current utilization, not what I have (over) provisioned?
  • What are my options when dealing with existing software licenses?
  • How does my current on-premises TCO compare to an AWS TCO?

This rapid engagement leverages an agentless tool provided by CloudChomp. The tool installs in less than 30 minutes and provides an AWS Total Cost of Ownership (TCO) analysis within a day.

Utilization information is analyzed to produce optimized AWS price scenarios, thereby minimizing your company’s future TCO.

To learn more, reach out here for a conversation.

To get the most out of your estimates, you should have a good idea of your basic requirements. For example, if you're going to try Amazon Elastic Compute Cloud (Amazon EC2), it might help if you know what kind of operating system you need, what your memory requirements are, and how much I/O you need. You should also decide whether you need storage, such as if you're going to run a database and how long you intend to use the servers. You don't need to make these decisions before generating an estimate, though. You can play around with the service configuration and parameters to see which options fit your use case and budget best. For more information about AWS service pricing, see AWS Services Pricing.

AWS offers a couple of tools (free of cost) for you to use. If the workload details and services to be used are identified, AWS pricing calculator can help with calculating the total cost of ownership. Migration Evaluator helps with inventorying your existing environment, identifying workload information, and designing and planning your AWS migration.

AWS Pricing Calculator

 AWS Pricing Calculator is a web based service that you can use to create cost estimates to suit your AWS use cases. AWS Pricing Calculator is useful both for people who have never used AWS and for those who want to reorganize or expand their usage.

AWS Pricing Calculator allows you to explore AWS services based on your use cases and create a cost estimate. You can model your solutions before building them, explore the price points and calculations behind your estimate, and find the available instance types and contract terms that meet your needs. This enables you to make informed decisions about using AWS. You can plan your AWS costs and usage or price out setting up a new set of instances and services.

AWS Pricing Calculator is free for use. It provides an estimate of your AWS fees and charges. The estimate doesn't include any taxes that might apply to the fees and charges. AWS Pricing Calculator provides pricing details for your information only. AWS Pricing Calculator provides a console interface at https://calculator.aws/#/.

Migration Evaluator

Migration Evaluator (Formerly TSO Logic) is a complimentary service to create data-driven business cases for AWS Cloud planning and migration.

Creating business cases on your own can be a time-consuming process and does not always identify the most cost-effective deployment and purchasing options. Migration Evaluator quickly provides a business case to make sound AWS planning and migration decisions. With Migration Evaluator, your organization can build a data-driven business case for AWS, gets access to AWS expertise, visibility into the costs associated with multiple migration strategies, and insights on how reusing existing software licensing reduces costs further.

A business case is the first step in the AWS migration journey. Beginning with on-premises inventory discovery, you can choose to upload exports from 3rd party tools or install a complimentary agentless collector to monitor Windows, Linux and SQL Server footprints. As part of a white-gloved experience, Migration Evaluator includes a team of program managers and solution architects to capture your migration objective and use analytics to narrow down the subset of migration patterns best suited to your business needs. The results are captured in a transparent business case which aligns business and technology stakeholders to provide a prescriptive next step in your migration journey.

Migration Evaluator service analyzes an enterprise’s compute footprint, including server configuration, utilization, annual costs to operate, eligibility for bring-your-own-license, and hundreds of other parameters. It then statistically models utilization patterns, matching each workload with optimized placements in the AWS Amazon Elastic Cloud Compute and Amazon Elastic Block Store. Finally, it outputs a business case with a comparison of the current-state against multiple future-state configurations showing the flexibility of AWS.

For more information, see Migration Evaluator.

Which of the following contributes total cost of ownership?

The total cost of ownership (TCO) includes the purchase price of a particular asset, plus operating costs, over the asset's lifespan.

What costs are included when comparing AWS total cost of ownership?

AWS costs depend on three key components: compute, outbound data transfer, and storage. The AWS pricing model and the product's specific characteristics determine the charges for each of these components.

In which ways does the AWS cloud offer lower total cost of ownership TCO of computing resources than on

AWS helps you reduce TCO by providing a pay-as-you-go model so you can invest only in the capacity you need, rather than having to invest in large capital expenditures.

What are the commercial benefits of running workloads on AWS?

By moving your Windows workloads to AWS, customers can realize a 98% reduction in unplanned downtime, 71% faster deployment, and 26% higher developer productivity, per IDC. AWS also delivered 2x better performance and 62% lower cost for a SQL Server workload on an EC2 R5b.