Cloud TCO Calculations
For realistic cost analysis of your cloud journey.
The Cost of Getting By
Cloud adoption is increasing among significant organizations, which decreases the upfront costs of investments and reduces the running costs. It is essential to conduct a TCO (Total Cost of Ownership) analysis to determine the benefits of adopting cloud technology. TCO Analysis is a standard tool for evaluating the direct and indirect costs and benefits involved with the implementation of cloud technology in your organization.
Problems with ‘Normal’ TCO Analysis
The usual TCO calculation might not work for the cloud. This is because:
- TCO of the cloud depends upon the kind of organization you are, the kind of business you operate with. TCO relies on the domain of your organization
- Factors such as existing skills of the staff, current investment in hardware, software, and infrastructure facilities, along with existing laws and regulations, need to be considered as well
- TCO analysis needs to analyze the grey areas that are difficult to understand, such as discovering the real benefit of cloud computing on how effectively will it adapt to the changes in the business
- TCO analysis needs to cover the value of readiness and time-to-market for cloud technology
MozoCloud defines your TCO Model
Since Cloud TCO analysis depends on the kind of organization you are, our experts at MozoCloud establish a list of properties for the cloud TCO model suitable to your problem domain. These properties include:
Existing Investment in Hardware
The amount of money already invested in the present infrastructure implies you have to factor the cost of suspending your current assets when you leverage the facilities of cloud infrastructure.
Training Cost for Transition
The existing skillset of your organization might not be compatible with the skills required for cloud services. Calculation of the transition cost is a significant part of the TCO analysis.
Cloud Migration Costs
The capital required to shift legacy applications and data to the cloud platform, including refactoring and re-platforming, is included in TCO analysis.
Operational Costs
The fee paid to the public cloud service provider over the duration of time with changing functional load is also an important part of the analysis.
Avoiding Future Expenditure
The previous hardware and software expenditures get eliminated with a massive reduction in most conventional acquisitions. Operational expenditures replace capital investments.
Compliance Issuing Costs
Organizations operating in specific sectors such as finance and technology have issues around compliance with specific rules and regulations. The cost of adding or eliminating the risk of non-compliance is all-inclusive in the TCO calculations.
With the change in properties, we develop a living model that portrays an accurate model helping your organization to deliver more value through your business.
