microsoft windows azure platform tco calculator

Microsoft Windows Azure Platform TCO AnalysisAnalysis and Customized Assessment Results

July 12, 2013

Prepared For: Your Organization

Third party model, methodology and data provided by:

Disclaimer

This analysis report should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of the report. This analysis report is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT.

©2010 Microsoft Corporation. All rights reserved.Microsoft, Active Directory, Axapta, BizTalk, Microsoft Dynamics, SharePoint, Windows, and Windows Server are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this report may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation.

Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this analysis. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this analysis does not give you any license to these patents, trademarks, copyrights, or other intellectual property of Microsoft.

This tool complies with their privacy policy. For more details, please visit the Microsoft website to review the policy in detail.

Model v2.130, Report v2.5

Microsoft Windows® Azure™ Platform TCO Analysis

Introduction

Examining IT total cost of ownership (TCO), the majority of IT spending, over 60% on average, is spent on core operations - the basic task of “keeping the lights on”. This leaves a scant 18% of the budget available for innovative investments such as new applications and services.1

Analyzing spending vs. performance, those organizations that reduce TCO and maximize innovative investments have higher revenue and profitability performance. These top performers spend significantly less on hardware, IT administration and support labor and services, allocating more spending on developing new applications and innovative services.

A key opportunity for organizations is to leverage cloud computing platform to help reduce the costs of application development and IT services delivery, migrating the spending from operations to innovation.

The Windows Azure Platform offers a simple, reliable, and powerful platform for the creation of applications and services. The Windows Azure Platform enables developers to focus on their business logic, as opposed to operational hurdles, in creating compelling applications, and allows IT operations and administration staff to reduce “keeping the lights on” costs by eliminating the need for investing significant resources in building and managing technology infrastructure.

The Windows Azure Platform can:

1) Improve Efficiency and Drive Focus – most organizations expend significant resources in building and managing their own technology infrastructure. The Windows Azure Platform can help organizations focus on what’s most important, empowering IT management to deliver services and value to customers, without having to focus precious financial, development and IT resources on deploying, managing, and scaling technology infrastructure. With the Windows Azure Platform, organization’s don’t have to worry about:

a. deploying, managing and scaling server, network, and storage infrastructure, b. implementing fail-over / redundancy systems, c. building and managing datacenter facilities,d. management and monitoring systems,e. building and managing Virtual Machines,f. patching Operating Systems.

As a platform-as-a-service (PaaS), versus just an outsourced infrastructure as a service (IaaS), the Windows Azure Platform delivers more to help reduce cost and drive focus on competitive advantage and innovation. Organizations can consume the computing resources that they need without having to invest the money, time, and effort in procuring and configuring infrastructure that may never be consumed to its full potential.

2) Deliver Higher Performance and Availability – the Windows Azure Platform delivers worldwide, geographically distributed world-class datacenter, resources and platform that dramatically exceeds in scalability, performance, availability, redundancy, best practices and security what many organization can accomplish with their own resources.

1 Source: Alinean ValueBase™ 2009 (developed in cooperation with IDC), examining over 20K+ worldwide company IT spending vs. Financial Performance.

© 2011 Microsoft Corporation, 2001-2011 Alinean, Inc. All rights reserved.

Microsoft Windows® Azure™ Platform TCO Analysis3) Improve Agility - Enables IT management and development teams to respond quickly to

changes in business and customer needs. a. Infrastructure can be quickly allocated to meet increasing traffic / adoption

demands via simple request vs. having to scale traditional on-premises solutions by procuring, installing, testing and delivering hardware, software, network, and storage infrastructure.

b. Ability to take an idea to market faster. c. Developers can use the rich and intuitive functionality offered by Visual Studio to quickly

and easily create their web services. The Web and Worker role as well as the SDK make it easy to design new web services. Ability to scale up and down seamlessly without complex operational procedures. Ability to upgrade my own service without taking it down.

4) Help organizations balance flexibility and control – the Windows Azure Platform empowers organizations to select the best deployment model for applications – whether hosted on their own servers, hosted by a cloud provider or a combination of the two; helping developers and service managers to combine on-premises and cloud resources to solve business problems.

Introducing Windows® Azure™ PlatformWhat is the Windows Azure Platform?The Windows® Azure™ Platform is an internet-scale cloud services platform hosted in Microsoft data centers, which provides an operating system and a set of developer services that can be used individually or together. The Windows Azure Platform’s flexible and interoperable platform can be used to build new applications to run from the cloud or enhance existing applications with cloud-based capabilities. Its open architecture gives developers the choice to build web applications, applications running on connected devices, PCs, servers, or hybrid solutions offering the best of online and on-premises.

The Windows Azure Platform reduces the need for up-front technology purchases, and it enables developers to quickly and easily create applications running in the cloud by using their existing skills with the Microsoft Visual Studio development environment and the Microsoft .NET Framework. In addition to managed code languages supported by .NET, the Windows Azure Platform will support more programming languages and development environments in the near future. The Windows Azure Platform simplifies maintaining and operating applications by providing on-demand compute and storage to host, scale, and manage web and connected applications. Infrastructure management is automated with a platform that is designed for high availability and dynamic scaling to match usage needs with the option of a pay-as-you-go pricing model. The Windows Azure Platform provides an open, standards-based and interoperable environment with support for multiple internet protocols, including HTTP, REST, SOAP, and XML.

Microsoft also offers cloud applications ready for consumption by customers such as Windows Live™, Microsoft Dynamics™, and other Microsoft Online Services for business such as Microsoft Exchange Online and SharePoint® Online. The Windows Azure Platform lets developers provide their own unique customer offerings by providing the foundational components of compute, storage, and building block services to author and compose applications in the cloud.


Microsoft Windows® Azure™ Platform TCO AnalysisThe Windows Azure Platform

Windows Azure PlatformThe Windows® Azure™ Platform is a cloud services platform hosted in Microsoft data centers, which provides the computation, storage and management environment for hosting internet-scale applications. The Windows Azure Platform’s flexible and interoperable platform can be used to build new applications to run from the cloud or enhance existing applications with cloud-based capabilities. Its open architecture gives developers the choice to build web applications, applications running on connected devices, PCs, servers, or hybrid solutions offering the best of online and on-premises.

The Windows Azure Platform reduces the need for up-front technology purchases, and it enables developers to quickly and easily create applications running in the cloud by using their existing skills with the Microsoft Visual Studio development environment and the Microsoft .NET Framework. As the platform evolves it will support more programming languages and development environments. The Windows Azure Platform simplifies maintaining and operating applications by providing on-demand compute and storage to host, scale, and manage web and connected applications. Infrastructure management is automated with a platform that is designed for high availability and dynamic scaling to match usage needs with the option of a pay-as-you-go pricing model. The Windows Azure Platform provides an open, standards-based and interoperable environment with support for multiple internet protocols, including HTTP, REST, SOAP, and XML.

Microsoft SQL Azure Microsoft SQL Azure extends the capabilities of Microsoft SQL Server into the cloud as a Web-based, distributed relational database. It provides Web services that enable relational queries, search, and data synchronization with mobile users, remote offices and business partners. It can store and retrieve structured, semi-structured, and unstructured data.

Microsoft AppFabricMicrosoft AppFabric is a set of Microsoft-hosted, highly scalable, developer-oriented services that provide key building blocks required by many cloud-based and cloud-aware applications. Much like the .NET Framework provides higher-level class libraries that make developers more productive, AppFabric enables a developer to focus on their application logic rather than building and deploying their own cloud-based infrastructure services.

Access Control


Microsoft Windows® Azure™ Platform TCO AnalysisThe Microsoft AppFabric Access Control Service provides an easy way to control web applications and services while integrating with standards-based identity providers, including enterprise directories and web identity systems such as Windows Live ID. Authorization decisions can be pulled out of the application and into a set of declarative rules that can transform incoming security claims into claims that applications understand.

Service Bus The Microsoft AppFabric Service Bus makes it easy to connect applications together over the Internet. Services that register on the Bus can easily be discovered and accessed, across any network topology. The Service Bus provides the familiar Enterprise Service Bus application pattern, while helping to solve some of the hard issues that arise when implementing this pattern across network, security, and organizational boundaries, at Internet-scale.

How the Windows Azure Platform Delivers Savings

In steady growth environments, on-premises or traditional hosted capacity is purchased based on forecasts where capacity is purchased ahead of time to support predicted workload/growth. These environments are typically 40-60% over-provisioned initially, and as growth occurs, additional capacity is added in similar over-provisioned fashion. In virtualized environments capacity can be added by managing virtual machine / physical server allocations to help reduce the amount of over-provisioning, but most environments have not implemented automatic dynamic workload management, requiring management intervention and still leading to 20% or more under-utilization of assets. The over-provisioning comes with initial capital cost, as well as on-going operational expenses, leading to higher total cost of ownership (TCO).

As growth is monitored, unpredictable spikes in growth are not immediately handled, causing short term service level issues. When spikes occur, emergency provisioning often occurs to be sure future spikes are handled, but often just leads to additional headroom requirements and further over-provisioning.

With the Windows Azure Platform, additional capacity can be better matched and allocated to support monitored workloads, substantially reducing the amount of over-provisioning. When workloads decline from predictions, capacity can be reduced to lower costs. When workloads increase dramatically, additional capacity can be quickly and dynamically allocated to handle increased computing demands, adding just what is needed, and then de-allocating when not needed.

With the Windows Azure Platform, actual capacity requirements can be more precisely matched against capacity purchased to dramatically reduce total cost of ownership.



In environments with predictable demand spikes or scheduled workloads / applications, on-premises solutions are most often purchased based on peak requirements. When not in use, the computing capacity often sits idle. This leads to dramatic underutilization of the assets and unnecessary capital investment / on-going management and support costs. Sometimes this peak capacity can be utilized by other virtualized applications, moving demand to utilize the idle capacity. In this manner, utilization can be improved, but in practice the management overhead in non-fully automated environments leads to these resources sitting idle.

If peak capacity varies or grows, the on-premises environment is over-provisioned to handle the growth in peak demand, making the return on assets that much worse, and leading to even higher total cost of ownership.

With the Windows Azure Platform, additional capacity can be allocated on a scheduled basis to precisely match the needs of the predictable demand spike or scheduled application.


Microsoft Windows® Azure™ Platform TCO AnalysisWhen demand spikes are not present, or the application computing power is not needed, the Windows Azure Platform capacity can be turned off to reduce costs. When demand spikes occur and the application computing power is needed, the capacity can be dynamically allocated to meet the exact requirements.

With the Windows Azure Platform, actual capacity requirements can be more precisely matched against capacity purchased to dramatically reduce total cost of ownership.

Application Profile for Your OrganizationThe profile for the application being analyzed for the Windows Azure Platform is as follows:

• Application type: Select One - Select One• Development of this application / service: Select One• Size of this application / service: Select One• Best measure of how integrated application is with other applications, either on-premises or

in the cloud: Select One• Best measure of user logins the Core IO / Other application supports: Select One• Profile of this application / service over time:

Proposed Windows Azure Platform for Your Organization

Based on the profile of your application and inputs, Windows Azure instances were specified to be: Number of Windows Azure instances: 2 Average use hours per day: 24,0 Average use days per year: 365

This results in the following usage / pricing profile based on the LOB scenario selected:

Usage** Rate***Initial / Month

Initial / Year

Windows Azure Computing 1.500,0 hrs / month R$0,25 / hour R$367,75 R$4.413

Storage (unstructured) (GB) 100 GB R$0,31

/ GB / month R$30,65 R$368

Storage transactions (tx) 15.000

10K tx / month R$0,02 /10K tx R$306,46 R$3.678

Content Delivery Network (CDN) 0 GB R$0,41

/ GB / month R$0,00 R$0

CDN Transactions (tx) 0 10K tx / R$0,02 /10K tx R$0,00 R$0


Microsoft Windows® Azure™ Platform TCO Analysismonth

Usage** Rate ***Initial / Month

Initial / Year

1GB databases (Web) 0 units R$16,32 / month R$0,00 R$0

5GB databases (Web) 0 units R$102,05 / month R$0,00 R$0

10GB databases (Business Edition) 1 units R$204,29 / month R$204,29 R$2.452

SQL Azure20GB databases (Business Edition) 0 units R$408,57 / month R$0,00 R$0

30GB databases (Business Edition) 0 units R$612,86 / month R$0,00 R$0

40GB databases (Business Edition) 0 units R$817,15 / month R$0,00 R$0

50GB databases (Business Edition) 0 units R$1.021,44 / month R$0,00 R$0


Initial / Year

AppFabricService Bus connections 2

connections / month R$8,15

/ 5 connections R$8,15 R$98

Access Control transactions (tx) 0

100K tx / month R$4,07 / 10K tx R$0,00 R$0


Initial / Year

Bandwidth Inbound * 25,00 avg. GB / hr R$0,20 / GB hour R$3.830,77 R$45.969

Outbound * 35,00 avg. GB / hr R$0,31 / GB hour R$8.044,61 R$96.535

Total

Initial / Month

Initial / Year

R$12.792,67 R$153.513

** Average usage, counts, rates and cost per month over analysis period. Initial defaults based on Profile selections. Annual costs are shown as initial costs and do not include monthly capacity growth. See monthly detail for costs with growth. *** This is not a pricing proposal, but an estimate for comparison. Please contact Microsoft or a certified Microsoft Partner to obtain an official pricing quote. All pricing subject to change.



Windows Azure Platform Application Migration and Setup Costs

The Windows Azure Platform's specific application migration costs tally any anticipated person hours / costs for implementing any special platform-as-a-service incremental development for existing / new applications. These are costs that are incremental to developing / porting the application to make it compatible with the Windows Azure Platform.

Will you incur any special migration / porting costs for the proposed Windows Azure Platform (beyond expected for an equivalent on-premises solution)? Yes

Windows Azure Platform specific application migration costs (incremental to on-premises / traditional):

Windows Azure Platform Application Migration

Costs

Initial One-Time

Person Hours

Average Burdened Post Per

Hour

Total Cost (one-time

initial)Total application migration costs 0,0 R$66,97 R$0

Delivery costs per Windows Azure instance (the person hours to setup, upload, enable a Windows Azure instance):

Setup Costs per New Windows Azure Instance

Initial One-Time

Person Hours

Average Burdened Post Per

Hour

Total Cost (one -time per instance)

Setup costs per Windows Azure instance (order, upload and deliver) 0,5 R$70,38 R$35,20

Windows Azure Platform IT Administration and SupportThe number of FTEs needed to support the Windows Azure Platform is often dramatically less than a traditional on-premises solution because Windows Azure provides not just infrastructure, but a Platform to help reduce configuration and change management, as well as server administration, network administration, storage management, backup and disaster recovery management, security (physical and logical), and facilities management person hours and costs.

Windows Azure instances that can be managed per FTE: 200 FTEs per Windows Azure instance: 0,005 Average hourly cost per burdened IT Administration and Support FTE: R$70,38

Windows Azure Platform Year 1 Year 2 Year 3 Total

Compute (Windows Azure instances) R$4.413 R$4.413 R$4.413 R$13.239

Storage (non-relational, files) R$402 R$492 R$601 R$1.496



Storage transactions (non-relational) R$4.041 R$4.948 R$6.058 R$15.047

1GB databases R$0 R$0 R$0 R$0 10GB databases R$4.699 R$4.903 R$4.903 R$14.506

AppFabric Service Bus connections R$196 R$196 R$196 R$588

AppFabric Access Control transactions R$0 R$0 R$0 R$0

Bandwidth - inbound R$46.995 R$49.299 R$51.718 R$148.013 Bandwidth - outbound R$98.687 R$103.531 R$108.610 R$310.827

IT administration and support R$1.326 R$1.379 R$1.434 R$4.139

Setup and delivery R$69 R$0 R$0 R$69 Total R$160.829 R$169.163 R$177.933 R$507.925 Number of Instances 2,0 2,0 2,0 2,0

Average Cost per Instance R$80.415 R$84.581 R$88.968 R$84.655

Average Cost per Month R$13.403 R$14.097 R$14.829 R$14.109

Avg. Cost Per Instance per Month R$6.701 R$7.049 R$7.049 R$6.933

Comparison of the Windows Azure Platform to On-Premise Solutions for Your OrganizationComparing the Windows Azure Platform with On-Premises solutions results in the following benefits for Windows Azure:

Windows Azure Platform Advantage - Three Year Analysis Period

Windows Azure Platform vs. On-

PremisesNet Savings with Windows Azure Platform R$816.206Total Windows Azure Platform Costs R$507.925


Windows Azure Platform Total Cost Windows Azure Platform Costs Per Year

Windows Azure Platform total cost of ownership per year over the three years analysis period.

Total cost of ownership costs per month for the Windows Azure Platform, average over the three years

analysis period.

Microsoft Windows® Azure™ Platform TCO AnalysisReturn on Investment (ROI) 160,0%Net Present Value (NPV) Savings (discount rate = 11.0%) R$718.588Time it takes for the Windows Azure Platform (in months) to recoup investment with savings when compared to alternatives 1Partner Net Revenue (R$56.429.568)* On-premises is configured with virtualization for comparison.* Purchase cost for initial on-premises infrastructure is included.

TCO Comparison with Windows Azure Platform

Net TCO Savings with the Windows Azure Platform

Comparing the total cost of ownership of the Windows Azure Platform to on-premises solution over the next three years.

With Windows Azure Platform, compared to on-premises solutions, the savings in total cost of ownership over the next

three years.

The Windows Azure Platform vs. On-PremisesThe Windows Azure Platform can help reduce the total cost of ownership compared to on-premises solutions:

Cost Category On-Premises Windows Azure

Capacity Planning In most datacenters, servers are under-utilized, over-provisioned to support perceived needs and promised service levels.

Computing is purchased on demand based on actual need and workload. Anytime more performance is needed, or a new service is launched, Windows Azure instances can be quickly and easily allocated. Dynamic scaling and on demand capacity drives lower TCO.

Server hardware (including failover / redundancy), software (including operating system, virtualization, systems and backup management) and related annual support /maintenance contracts can be eliminated.

Storage Most datacenters need to procure SAN, NAS or DAS storage to support applications.

In traditional on-premises environments, storage is purchased ahead of time to support maximum capacity projections and growth. As a result, an average of 60% of storage is over-provisioned / un-utilized (Alinean 2009).

For many applications, storage grows over time, increasing the required capital investment to not only include additional drive capacity, but often a costly re-architecture in order to meet performance and availability needs.

Highly available / performance storage solutions such as mid-range / high end SANs often include expensive hardware and software to manage copies, mirroring and performance.

Windows Azure includes highly scalable / available / durable storage infrastructure on-demand.

Storage hardware, software purchases and related support and maintenance contracts can be eliminated. This includes elimination of data mirroring, backup software, libraries, media, and media services (off-site media storage).

Database Servers and Software

Database servers and software can be an expensive investment for most organizations.

SQL Azure is an extremely cost effective solution that includes Microsoft SQL database


Microsoft Windows® Azure™ Platform TCO AnalysisInvestments are often underutilized and over-provisioned.

licenses and storage.

Database server hardware (including failover / redundancy), software license purchases for Microsoft SQL and database server, OS licenses, and systems management licenses, as well as related annual support /maintenance contracts can be eliminated.

Networking For on-premises solutions, a networking infrastructure needs to be procured and installed. Networking devices are often redundant, doubling the necessary investment. As traffic grows often this infrastructure needs to be re-scaled.

Investments are often made in acceleration services / software to scale effectively.

Windows Azure includes redundant and best practices managed networking infrastructure.

Networking hardware (including failover / redundancy), management services, and annual support /maintenance contracts can be eliminated.

Systems Monitoring and Management

System monitoring and management tools need to be procured and implemented to monitor performance, availability, performance, security and configurations. This includes management of servers, applications, security, network and storage.

Windows Azure host systems are monitored and managed using world-class best practices as an integral part of the service, with no additional cost or investment needed.

Systems monitoring is part of the infrastructure and automated so the user does not have to the extra work. Annual support maintenance contracts are thus eliminated.

Virtualization and Server Management

To achieve better utilization and reduced costs, most organizations are implementing virtualized infrastructures. These environments often require an investment in additional management tools, and an improvement in capability and maturity to effectively manage.

Windows Azure does not require any incremental investment in tools to help manage a virtualized environment. Best practices are already maximized integral to the service to seamlessly manage physical devices and virtual machines.

Automated service management helps in reducing costs.

Development and Test Environment

Development and test require systems that mirror / resemble deployment systems. This requires additional hardware, software, storage and other infrastructure investments, as well as provisioning and administration management.

Windows Azure allows developers and testers to self-provision workspaces during development lifecycles on demand.

Need to provision additional servers, network, storage and software to support development, test and staging environments is eliminated.

Redundancy Most organizations require redundant web servers and failover for database servers.

Windows Azure provides fail-over / redundancy support to assure service levels without adding management cost.

Eliminates need for redundant hardware and failover / mirroring / redundancy software investments.

Disaster Recovery Sites

Any data center supporting high available applications requires a disaster recovery site or service to support operations should a disaster strike the primary datacenter. These redundant sites are expensive to establish and support.

Windows Azure provides worldwide disaster recovery sites for data redundancy.

Spares In any substantial datacenter or highly available operation, standby systems and spares are a requirement.

With Windows Azure, no standby systems or spares need to be purchased. Windows Azure operations take care of all infrastructure and service levels are assured.

Spares no longer need to be purchased.

Datacenter Facilities New datacenters are expensive to build and maintain.

Existing datacenters can be reclaimed for other operations to avoid space costs.

With Windows Azure, the investment in the datacenter is not needed.

The need for datacenter facilities space to support these applications is eliminated freeing up the space for other uses, or eliminating the need to add additional facilities in expanding environments.

Power and Cooling On-premises datacenter servers, storage and network devices need to be powered and cooled.

With Windows Azure, the direct cost to power and cooling the datacenter is factored into the unit price per instance.



Server Administration

Servers require internal labor or managed services to assure that assets are properly installed, configured and optimize. These tasks include managing physical server installs and changes, operating system installs and patches, virtualization management, security management, systems monitoring and configuration.

Windows Azure is a platform as a service, helping to not only eliminate the need to manage physical server install and changes, but more importantly, avoidance of time consuming operations tasks including change, configuration and services management of the operating system, virtualization, security, and management tools.

Frees server administration resources for more important projects / value-added tasks. Avoid hiring more IT resources to support growth.

Network Administration

Network devices and connectivity also need to be managed by internal resources or managed services providers, particularly network setup and configuration, change management, tools management, performance monitoring, availability, optimization, and security.

Windows Azure includes a completely managed, optimized and highly available networking infrastructure as part of the services.

Frees network administration resources for more important projects / value-added tasks. Avoid hiring more IT resources to support growth.

Storage Administration

Storage needs to be managed to assure that data is available, high performance, recoverable and secure. Storage growth is a given with most applications and IT is taxed with not only adding storage when needed, but often reengineering the storage and DR architecture to support growth.

Windows Azure provides a full managed high performance / availability storage infrastructure.

Frees storage administration resources for more important projects / value-added tasks. Avoid hiring more IT resources to support growth.

Telecommunications Management

Bandwidth providers need to be managed. For global operations, this can include multiple vendors. When an issue occurs, obtaining support can often be difficult.

Windows Azure includes managed bandwidth as part of the services, with a central point of service.

Free telecommunication management resources for more important projects / value-added tasks. Avoid hiring more IT resources to support growth.

Security Management Security issues including preventing network intrusion, viruses, and data security are difficult and expensive to manage. Platforms need to be managed and constantly patched to help secure them from vulnerabilities.

Windows Azure provides best practices security management and tools to help prevent attacks, and quickly isolate and mitigate them should they occur. Windows Azure includes management of configurations to assure that the latest security patches are installed.

Frees security management resources for more important projects / value-added tasks. Avoid hiring more IT resources to support growth.

Break-Fix Management

When a hardware device has an issue, technicians need to quickly mitigate the issue and affect a repair.

Windows Azure provides a fully virtualized environment assuring that device issues do not cause service downtime. Microsoft technicians handle all maintenance and repair on assets.

Frees technical support resources for more important projects / value-added tasks. Avoid hiring more IT resources to support growth.

Facilities Management

Datacenters require physical support and maintenance including managing physical security / access, managing air handlers / cooling systems, managing power, and managing change.

Windows Azure eliminates the need for facilities management, providing several world-class highly secure datacenter facilities with efficient and redundant power and cooling. Physical security includes biometric access.

Frees datacenter facilities management resources for more important projects / value-added tasks. Avoid hiring more IT resources to support growth.

Asset Management & Procurement

Assets require procurement to purchase, lease, manage support / maintenance contracts, and manage services contracts. These assets need to be tracked and lifecycle managed.

Windows Azure eliminates the need for assets to support applications.

Frees asset management and procurement resources for more important projects / value-added tasks. Avoid hiring more IT resources to


Microsoft Windows® Azure™ Platform TCO Analysissupport growth.

Windows Azure Platform vs. On-Premises (virtualized)

Windows Azure Platform Savings Over Three Year Analysis Period

Windows Azure

Platform

On-Premises

(virtualized)Windows Azure Platform Savings vs. On-Premises

Web / worker computing R$13.239 R$111.319 R$98.080 88,1%Storage (non-relational) R$16.543 R$2.548 (R$13.995) -549,3%Database computing, licensing and storage R$14.506 R$86.408 R$71.902 83,2%Service Bus connections R$588 R$0 (R$588) 0,0%Access Control transactions R$0 R$0 R$0 0,0%Bandwidth R$458.840 R$987.921 R$529.081 53,6%IT administration and support R$4.139 R$64.708 R$60.569 93,6%Facilities and overhead R$0 R$54.409 R$54.409 100,0%Setup and delivery R$69 R$16.819 R$16.749 99,6%Total Cost Over Three Year Analysis Period R$507.925

R$1.324.131 R$816.206 61,6%

Number of Instances / Physical Servers 2 4Average Total Cost per Month R$14.109 R$36.781 R$22.672Net Present Costs (discount rate = 11.0%) R$429.177

R$1.147.765 R$718.588 62,6%

Windows Azure Platform vs. On-Premises

Comparing the total cost of ownership of the Windows Azure Platform to an on-premises solution over the next three years.


Microsoft Windows® Azure™ Platform TCO AnalysisOn-PremisesThe estimated costs of an equivalent On-Premises solution.

On-Premises Costs Over Three Year Analysis Period Year 1 Year 2 Year 3 Total

Web / worker computing R$84.743 R$13.288 R$13.288 R$111.319Storage (non-relational) R$1.391 R$521 R$635 R$2.548Database computing, licensing and storage R$51.823 R$17.284 R$17.301 R$86.408Service Bus connections R$0 R$0 R$0 R$0Access Control transactions R$0 R$0 R$0 R$0Bandwidth R$364.053 R$304.573 R$319.294 R$987.921IT administration and support R$21.228 R$21.315 R$22.165 R$64.708Facilities and overhead R$18.044 R$18.130 R$18.234 R$54.409Setup and delivery R$15.922 R$439 R$458 R$16.819

Partner Net Revenue(R$6.847.57

0)(R$18.642.1

60)(R$30.939.8

37)(R$56.429.5

68)

Total Cost R$557.204 R$375.552 R$391.376R$1.324.13

1Average Number of Physical Servers 3,9 4,0 4,0 4,0Average Cost per Server Per Year R$142.872 R$93.887 R$97.845 R$111.535Average Total Cost per Month R$46.433 R$31.296 R$32.616 R$36.781Average Cost per Server Per Month R$11.905 R$7.825 R$8.154 R$9.295

On-Premises Costs Per Year



Partner Revenue EstimatorThe estimated partner revenue based on Monthly Azure costs

Your OrganizationPartner Application Azure Profile Settings

Total Azure Costs Monthly Compute (Windows Azure instances) R$368 Storage (non-relational, files) R$33 Storage transactions (non-relational) R$337 1GB databases R$0 10GB databases R$392 AppFabric Service Bus connections R$16 AppFabric Access Control transactions R$0 Bandwidth - inbound R$3.917 Bandwidth - outbound R$8.223 IT administration and support R$110 Setup and delivery R$6 Sales and Marketing R$0 Other R$0 Total R$13.403 Average Cost per Instance R$6.701 Average Cost per Month R$13.403 Inferred Price/App/Customer (Monthly) R$4.086 Partner Gross Margin -228%

Partner Deal ProjectionsNumber of Deals per Year

"New" Deals - Year 1 98



"New" Deals % by

Quarter 0

"New" Deals % by

Quarter

Added Monthly

Cost

"New" Deals % by

Quarter

Added Monthly

Cost Q1 25% R$328.363 25% R$368.571 25% R$368.571 Q2 25% R$328.363 25% R$368.571 25% R$368.571 Q3 25% R$328.363 25% R$368.571 25% R$368.571 Q4 25% R$328.363 25% R$368.571 25% R$368.571

100%R$1.313.4

52 100%R$1.474.2

83 100%R$1.474.2

83 Total Revenue Year 1

R$3.003.320

Total Revenue Year 2

R$8.176.386

Total Revenue Year 3

R$13.570.104

Total Cost Year 1

R$9.850.890

New Cost From Year 2 deals

R$11.057.122

New Cost From Year 3 Deals

R$11.057.122

Cost in Year 2 for Year 1 deals

R$15.761.425

Cost in Year 3 for Years 1 & 2 Deals

R$33.452.820

Total Cost Year 2

R$26.818.547

Total Cost for Year 3

R$44.509.942

Partner Investment Net Profit


Microsoft Windows® Azure™ Platform TCO Analysis Partner Investment R$510.769 Year 1 (R$6.847.570) Net Investment (R$510.769) Year 2 (R$18.642.160) Discount Rate 6% Year 3 (R$30.939.837) Net Present Value (R$46.735.737) Total (R$56.429.568) Internal Rate of Return 0% Return on Investment -9.150%

Seasonal Azure Cost PlanningThe following table is a breakdown of the monthly Azure Costs based on the Partner’s seasonal Activity.Business year starts in: Jan

Month Seasonal Scaling Monthly Azure Costs Jan 5,00% R$8.042 Feb 5,00% R$8.042 Mar 5,00% R$8.042 Apr 5,00% R$8.042 May 5,00% R$8.042 Jun 5,00% R$8.042 Jul 5,00% R$8.042 Aug 3,33% R$5.355 Sep 3,33% R$5.355 Oct 3,33% R$5.355 Nov 5,00% R$8.042 Dec 50,00% R$80.415 Total 100,00% R$160.812

Seasonal Monthly Azure Costs

This chart illustrates the seasonal variations in Azure costs compared to the average monthly cost.


Microsoft Windows® Azure™ Platform TCO AnalysisAdditional Benefits of the Windows Azure PlatformThe Windows Azure Platform can deliver significant additional benefits (some of which are significant, but more difficult to accurately quantify) compared to an on-premises solutions:

Improved Agility and Time to Market – with a physical infrastructure to manage, or locked in dedicated server hosting contracts, handling changing business requirements can be a challenge compared to a pure on-demand solution such as the Windows Azure Platform. With the Windows Azure Platform the team can in a matter of minutes setup and deliver new applications or services, scale to meet demand spikes, or reconfigure the services to meet changing business needs – all without having to reconfigure or change a physical infrastructure. This can help the team drive launch more quickly new revenue generating applications, deliver new business services more quickly and meet changing demands instantly. Developers can develop applications for the Windows Azure Platform using the rich and intuitive functionality offered by Visual Studio that they are already familiar with. Ability to scale up and down seamlessly without complex operational procedures. Ability to upgrade my own service without taking it down.

Higher Availability / Service Levels – the Windows Azure Platform has guaranteed service levels for performance and availability. Achieving these service levels for a cost effective cost per month versus the substantial investment it would take to achieve similar performance, scalability, redundancy, disaster recovery and availability with on-premises solutions. This is achieved through best practices failover, mirroring, snapshots, backup and recovery, redundancy of systems, redundancy of datacenters, and monitoring.

Improve Security – the Windows Azure Platform provides best practice physical security including biometrics / layered access to datacenter facilities, as well as multiple layers of security built into the platform itself.

Better Focus on Innovation – many organizations would like to do more, but are resource constrained as to how many new applications can be launched in a given quarter or year, and how much new technology and innovation to take advantage of. Many organizations report that limitations in staff prevent the development, test and launch of new applications, proper evolution and maintenance of existing applications, further virtualization of the datacenter, and launch of new services / business models such as SaaS. With the Windows Azure Platform, the organization does not have to spend precious resources on installing, configuring, managing, optimizing and supporting the servers and infrastructure, freeing up time to work with business groups and development on innovative projects and to launch / deliver more applications to users, partners and customers.

Faster Path to Software as a Service (SaaS) Offerings – The Windows Azure Platform provides a simple mechanism for developers and businesses to utilize the cloud in meeting customer needs, providing a faster path to SaaS offerings. The Windows Azure Platform’s business model enables ISV’s to move from traditional software license sales, to more quickly adopt and properly deliver upon the software as a service business model. The services platform can be used to deliver applications as a service, or give new life to existing investments - providing new capabilities to existing on-premises and Web applications. The Windows Azure Platform can be integrated into existing applications or used to expose on-premises application services to consumers, business partners, or other organizations.


Microsoft Windows® Azure™ Platform TCO AnalysisSources of Default MetricsDefault research / metrics used in this tool are as follows:

Costs for on-premises servers, storage and networking based on Alinean research 2009 using publicly available retail pricing from HP and Dell (servers), EMC (storage) and Cisco (networking)

Costs for software licensing based on Microsoft retail prices as of August 26, 2009, including the following sources:

o Microsoft SQL Server 2008 o Microsoft Windows Server 2008 o Microsoft System Center 2007

IT administration, support and delivery management services for on-premises configuration are based on IDC IO studies – 2006, updated to reflect latest best practice averages, salaries and burdened rate information by Alinean, 2009 (tuned for industry and location). IT administration and support for the Windows Azure Platform were derived based on comparing tasks that could be eliminated and reducing the staffing to account for outsourcing / automation.

Costs for facilities, power and cooling based on Alinean research 2009, and include US power costs based on Energy Information Administration, U.S. Department of Energy, Electric Power Monthly, July 2008, Table 5.6A and Figure 4, "2008 Year-to-Date Average Cost per kWh", Latest Available Report can be found at: http://www.eia.doe.gov/cneaf/electricity/epm/epm.pdf, with international power costs from http://www.powerstandards.com/images/PSL_World_Map_Electricity_Prices.jpg

Migration costs for the Windows Azure Platform are based on profile and configuration using metrics provided by Microsoft analyzing initial TAP customer experiences. Estimating these by default is difficult and it is recommended that the assumptions for the Windows Azure Platform migration, as with all assumptions, be reviewed and personalized to reflect your unique requirements and costs.

All pricing for the Windows Azure Platform based on retail prices as of January 1, 2010

All competitive pricing and metrics are for comparison purposes only. As many factors contribute to pricing, configurations and discounts, these figures should be used for guidance only. Alinean provides these metrics as a guide only and does not warrant results. It is important to research and enter your own unique configuration and pricing.

All pricing for the Windows Azure Platform is subject to change, and any pricing provided does not represent a price quote. Please contact your Microsoft representative for more information.


http://www.microsoft.com/windowsserver2008/en/us/pricing.aspx

http://www.microsoft.com/sqlserver/2008/en/us/pricing.aspx


Appendix A: Questionnaire (As Is)

Name of your organization: Your Organization

Select analysis type: (Detailed, High Level, Partner) PartnerSelect the best match to the location(s) for the organization's data center - country or region: Latin America

Application Usage and Growth Profile

Profile of annual growth (average annualized rate, starting in month 2, if any):

Compute power: 5,0%

Non-relational storage capacity: 20,0%

Storage transactions: 20,0%

Number of 1GB databases per year: 20,0%

Number of 10GB databases per year: 20,0%

Service Bus connections: 5,0%

Access Control transactions: 5,0%

Bandwidth: 5,0%

General Growth / Analysis Assumptions

Average increase in burdened IT administration and support labor costs per FTE per year (starting in year 2): 4,0%

Discount rate for NPV cost and savings analysis: 11,0%



Appendix B: Windows Azure Platform DetailsWindows Azure Platform Details by Month

The details of the proposed Windows Azure Platform by month.

Windows Azure Platform Growth and Pricing – Year 1

Windows Azure Platform Growth

and Pricing - Year 1 Year 1

Windows Azure Instances 1 2 3 4 5 6 7 8 9 10 11 12

Number of Windows Azure Extra Small instances 0 0 0 0 0 0 0 0 0 0 0 0

Number of Windows Azure Small instances 2 2 2 2 2 2 2 2 2 2 2 2

Extra Small Instance hours per month 0 0 0 0 0 0 0 0 0 0 0 0

Small Instance hours per month 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500

Cost per Extra Small compute hour R$0,102 R$0,102 R$0,102 R$0,102 R$0,102 R$0,102 R$0,102 R$0,102 R$0,102 R$0,102 R$0,102 R$0,102

Cost per Small compute hour R$0,245 R$0,245 R$0,245 R$0,245 R$0,245 R$0,245 R$0,245 R$0,245 R$0,245 R$0,245 R$0,245 R$0,245

CDN (cumulative in GB) 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Cost per CDN GB per month R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41

Number of CDN transactions per month (in 10K units) 0 0 0 0 0 0 0 0 0 0 0 0

Cost per 10K transactions R$0,02 R$0,02 R$0,02 R$0,02 R$0,02 R$0,02 R$0,02 R$0,02 R$0,02 R$0,02 R$0,02 R$0,02

TotalR$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5

Non-Relational Storage Profile 1 2 3 4 5 6 7 8 9 10 11 12

Data (cumulative in GB) 100,00 101,67 103,36 105,08 106,83 108,61 110,42 112,26 114,13 116,03 117,96 119,93

Cost per GB per month R$0,31 R$0,31 R$0,31 R$0,31 R$0,31 R$0,31 R$0,31 R$0,31 R$0,31 R$0,31 R$0,31 R$0,31

Total R$30,65 R$31,16 R$31,67 R$32,20 R$32,73 R$33,28 R$33,83 R$34,41 R$34,98 R$35,55 R$36,14 R$36,75

Number of storage transactions per month (in 10K units) 15.000 15.255 15.514 15.778 16.046 16.319 16.597 16.879 17.166 17.457 17.754 18.056


TotalR$306,4

6R$311,6

7R$316,9

6R$322,3

6R$327,8

3R$333,4

1R$339,0

9R$344,8

5R$350,7

1R$356,6

6R$362,7

3R$368,9

0

Relational Database Storage 1 2 3 4 5 6 7 8 9 10 11 12

1 GB Units Web Edition 0 0 0 0 0 0 0 0 0 0 0 0

Cost per month for 1GB Web Edition R$16,32 R$16,32 R$16,32 R$16,32 R$16,32 R$16,32 R$16,32 R$16,32 R$16,32 R$16,32 R$16,32 R$16,32




10GB Units Business Edition 1 2 2 2 2 2 2 2 2 2 2 2

Cost per month for 10GB Business Edition R$204,29 R$204,29 R$204,29 R$204,29 R$204,29 R$204,29 R$204,29 R$204,29 R$204,29 R$204,29 R$204,29 R$204,29




Microsoft Windows® Azure™ Platform TCO Analysis30GB Units Business Edition 0 0 0 0 0 0 0 0 0 0 0 0





Cost per month for 50GB Business Edition

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

TotalR$204,2

9R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7

AppFabric 1 2 3 4 5 6 7 8 9 10 11 12

Number of Service Bus connections 2 2 2 2 2 2 2 2 2 2 2 2

Cost per 5 connections R$8,15 R$8,15 R$8,15 R$8,15 R$8,15 R$8,15 R$8,15 R$8,15 R$8,15 R$8,15 R$8,15 R$8,15


Number of Access Control transactions (in nearest 100K increments) 0 0 0 0 0 0 0 0 0 0 0 0



Bandwidth 1 2 3 4 5 6 7 8 9 10 11 12

Inbound (avg. GB per hour) 25,0000 25,1000 25,2004 25,3012 25,4024 25,5040 25,6060 25,7084 25,8112 25,9144 26,0181 26,1222

Inbound GBs per Month 18.750 18.825 18.900 18.976 19.052 19.128 19.205 19.281 19.358 19.436 19.514 19.592

Cost per GB per Month R$0,20 R$0,20 R$0,20 R$0,20 R$0,20 R$0,20 R$0,20 R$0,20 R$0,20 R$0,20 R$0,20 R$0,20

TotalR$3.830,

77R$3.846,

09R$3.861,

41R$3.876,

94R$3.892,

47R$3.907,

99R$3.923,

73R$3.939,

25R$3.954,

98R$3.970,

92R$3.986,

86R$4.002,

79

Outbound (avg. GB per hour) 35,0000 35,1400 35,2806 35,4217 35,5634 35,7057 35,8485 35,9919 36,1359 36,2804 36,4255 36,5712

Outbound GBs per month 26.250 26.355 26.460 26.566 26.673 26.779 26.886 26.994 27.102 27.210 27.319 27.428


TotalR$8.044,

61R$8.076,

79R$8.108,

96R$8.141,

45R$8.174,

24R$8.206,

73R$8.239,

52R$8.272,

61R$8.305,

71R$8.338,

81R$8.372,

21R$8.405,

62

IT Administration and Support 1 2 3 4 5 6 7 8 9 10 11 12

Number of Person Hours per Month 1,57 1,57 1,57 1,57 1,57 1,57 1,57 1,57 1,57 1,57 1,57 1,57

Average burdened labor cost per hour R$70,38 R$70,38 R$70,38 R$70,38 R$70,38 R$70,38 R$70,38 R$70,38 R$70,38 R$70,38 R$70,38 R$70,38

TotalR$110,5

1R$110,5

1R$110,5

1R$110,5

1R$110,5

1R$110,5

1R$110,5

1R$110,5

1R$110,5

1R$110,5

1R$110,5

1R$110,5

1

Setup and Delivery 1 2 3 4 5 6 7 8 9 10 11 12

Initial application migration and setup costs for new Windows Azure instances R$70,40 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00


Total Year 1R$12.98

2R$13.17

0R$13.22

3R$13.27

6R$13.33

1R$13.38

4R$13.43

9R$13.49

5R$13.55

0R$13.60

5R$13.66

2R$13.71

7





Microsoft Windows® Azure™ Platform TCO AnalysisWindows Azure Instances 1 2 3 4 5 6 7 8 9 10 11 12








Cost per CDN GB per month R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41



TotalR$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5







TotalR$375,1

7R$381,5

4R$388,0

4R$394,6

2R$401,3

4R$408,1

7R$415,0

9R$422,1

6R$429,3

3R$436,6

3R$444,0

6R$451,6

0

















R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44



Microsoft Windows® Azure™ Platform TCO Analysis7 7 7 7 7 7 7 7 7 7 7 7

AppFabric 1 2 3 4 5 6 7 8 9 10 11 12







Bandwidth 1 2 3 4 5 6 7 8 9 10 11 12


Inbound GBs per month 19.670 19.749 19.828 19.907 19.987 20.067 20.147 20.227 20.308 20.390 20.471 20.553


TotalR$4.018,

73R$4.034,

87R$4.051,

01R$4.067,

15R$4.083,

49R$4.099,

84R$4.116,

18R$4.132,

53R$4.149,

08R$4.165,

83R$4.182,

38R$4.199,

13




TotalR$8.439,

33R$8.473,

04R$8.507,

06R$8.541,

08R$8.575,

09R$8.609,

42R$8.644,

05R$8.678,

37R$8.713,

31R$8.747,

94R$8.783,

18R$8.818,

12




TotalR$114,9

2R$114,9

2R$114,9

2R$114,9

2R$114,9

2R$114,9

2R$114,9

2R$114,9

2R$114,9

2R$114,9

2R$114,9

2R$114,9

2


Setup costs for new Windows Azure Instances R$0 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00

Total R$0 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00

Total Year 2R$13.77

8R$13.83

6R$13.89

3R$13.95

0R$14.00

7R$14.06

7R$14.12

4R$14.18

3R$14.24

2R$14.30

2R$14.36

1R$14.42

2




Windows Azure Instances 1 2 3 4 5 6 7 8 9 10 11 12









Microsoft Windows® Azure™ Platform TCO AnalysisCost per CDN GB per month R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41 R$0,41



TotalR$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5R$367,7

5







TotalR$459,2

8R$467,0

9R$475,0

4R$483,1

1R$491,3

2R$499,6

7R$508,1

7R$516,8

0R$525,5

8R$534,5

3R$543,6

2R$552,8

6

















R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

R$1.021,44

TotalR$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7R$408,5

7

AppFabric 1 2 3 4 5 6 7 8 9 10 11 12









Bandwidth 1 2 3 4 5 6 7 8 9 10 11 12




TotalR$4.215,

89R$4.232,

84R$4.249,

80R$4.266,

76R$4.283,

72R$4.300,

88R$4.318,

04R$4.335,

41R$4.352,

77R$4.370,

14R$4.387,

71R$4.405,

07




TotalR$8.853,

36R$8.888,

91R$8.924,

46R$8.960,

01R$8.995,

86R$9.032,

03R$9.068,

19R$9.104,

35R$9.140,

82R$9.177,

29R$9.214,

06R$9.250,

84




TotalR$119,5

2R$119,5

2R$119,5

2R$119,5

2R$119,5

2R$119,5

2R$119,5

2R$119,5

2R$119,5

2R$119,5

2R$119,5

2R$119,5

2


Setup costs for new Windows Azure Instances R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00


Total Year 3R$14.48

5R$14.54

7R$14.60

8R$14.66

9R$14.73

3R$14.79

4R$14.85

7R$14.92

1R$14.98

4R$15.04

7R$15.11

1R$15.17

6



Appendix C: On-Premise Detailed AssumptionsDetailed Assumptions for On-Premises

Include the purchase of new on-premises hardware / software: Yes

Will the on-premises hardware be installed in a co-location facility? Yes

Include virtualization for on-premises and the purchase of virtualization management tools: Yes

Server configuration for on-premises servers:

Number of Web and worker servers: 2

Average number of CPUs per server: 2,0

Average number of cores per CPU: 2,0

Number of database servers: 1

Average number of CPUs per server: 4,0

Average number of cores per CPU: 4,0

For Microsoft SQL databases (if any), licensing edition to include in pricing: Web Edition

Average cost per processor per month for Microsoft SQL Server licensing: R$30,65

Computing, storage, database, message and bandwidth costs:

On-Premises CostsInitial One Time Fee

Ongoing Monthly

Costs

Server Costs

Average hardware cost per web / worker server R$14.302 R$178,77

Average hardware cost per database server R$17.570 R$219,63

OS, virtualization and systems management software cost per server R$21.426 R$374,95

Monthly co-location / facilities, overhead and other cost per server R$735,51

Storage Costs

Storage Cost (hardware and software) per GB R$6,13 R$0,10

Monthly facilities, overhead and other cost per GB R$0,00 R$0,16

Database Costs

Database licensing (per database) R$0 R$122,58

Hardware cost per GB R$6,13 R$0,10

Software cost per GB R$2,04 R$0,04

Monthly facilities, overhead and other cost per GB R$0,00 R$0,22

Service Bus connections (per connection) R$0,00 R$0,00

Access Control transactions (per 100K transactions) R$0,00 R$0,00

Bandwidth Costs

Bandwidth hardware / software (per each 2.0GB average per hour) R$4.086 R$71,51

Monthly bandwidth fee (per each GB) R$0,49

Management and Support:Management and support should be set to include server administration, network administration, configuration and change management, storage management, backup and disaster recovery, security (physical and logical). Often


Microsoft Windows® Azure™ Platform TCO Analysisunderestimated because many tasks such as physical security, facilities management, DR management, availability and performance management are often overlooked. Be sure to tally all FTEs related to the servers, infrastructure, storage, network, OS and database platforms for an apples-to-apples comparison with Windows Azure.

Servers that can be managed per IT FTE: 15

FTEs per on-premises server: 0,07

Average hourly cost per burdened IT Administration and Support FTE: R$70,38

FTEs in total (month 1): 0,2

The costs to setup and deliver new on-premises servers / infrastructure:

Setup Costs Initial One Time Person

Hours

Average Burdened Cost Per

Hour Total Cost

Average setup costs for each new web / worker / database server, OS and systems management 8,0 R$70,38 R$564

Average setup costs per new database 40,0 R$70,38 R$2.815

Average setup costs per new network device 6,0 R$70,38 R$423

Total 54,0 R$3.802



Appendix D: On-Premise Monthly DetailsOn-Premises Details by Month

The details of the on-premises solution being compared to the Windows Azure Platform, by month.

On-Premises Details – Year 1

On-Premises Growth and Pricing

- Year 1 Year 1

Compute (Internet / Worker) 1 2 3 4 5 6 7 8 9 10 11 12

Number of servers 2 2 2 2 2 2 2 2 2 2 2 2

Number of new servers 2 0 0 0 0 0 0 0 0 0 0 0

Initial average cost per new server R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727

Ongoing cost per server R$553,71 R$553,71 R$553,71 R$553,71 R$553,71 R$553,71 R$553,71 R$553,71 R$553,71 R$553,71 R$553,71 R$553,71

TotalR$72.56

1,93R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43



New Data (GB added) 160,00 2,67 2,71 2,75 2,80 2,85 2,89 2,95 2,99 3,04 3,09 3,15

Cost per new GB R$6,13 R$6,13 R$6,13 R$6,13 R$6,13 R$6,13 R$6,13 R$6,13 R$6,13 R$6,13 R$6,13 R$6,13


TotalR$997,0

2 R$32,98 R$33,51 R$34,04 R$34,63 R$35,22 R$35,75 R$36,43 R$36,98 R$37,59 R$38,23 R$38,90

Relational Database 1 2 3 4 5 6 7 8 9 10 11 12

Number of database servers 1 2 2 2 2 2 2 2 2 2 2 2

Number of new database servers 1 1 0 0 0 0 0 0 0 0 0 0



TotalR$18.16

5,02R$18.75

9,60R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15

Number of databases 1 2 2 2 2 2 2 2 2 2 2 2

Number of new databases 1 1 0 0 0 0 0 0 0 0 0 0

Database storage (in GB) 16,0 16,3 16,5 16,8 17,1 17,4 17,7 18,0 18,3 18,6 18,9 19,3

New Data (GB added) 16,0 0,3 0,2 0,3 0,3 0,3 0,3 0,3 0,3 0,3 0,3 0,4

Cost per new database R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0

Cost per database per month R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58



TotalR$255,6

3R$249,9

5R$249,1

7R$250,0

3R$250,0

7R$250,1

1R$250,1

5R$250,1

9R$250,2

4R$250,2

8R$250,3

2R$251,2

0

Service Transactions 1 2 3 4 5 6 7 8 9 10 11 12


Cost per connection R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00







Bandwidth 1 2 3 4 5 6 7 8 9 10 11 12

Networking

Hardware units 18,0 18,0 18,0 18,0 18,0 18,0 18,0 18,0 19,0 19,0 19,0 19,0

New hardware units 18,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 1,0 0,0 0,0 0,0

Average cost per new unit

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

Average cost per installed unit R$71,51 R$71,51 R$71,51 R$71,51 R$71,51 R$71,51 R$71,51 R$71,51 R$71,51 R$71,51 R$71,51 R$71,51

TotalR$74.83

7,84R$1.287,

14R$1.287,

14R$1.287,

14R$1.287,

14R$1.287,

14R$1.287,

14R$1.287,

14R$5.444,

79R$1.358,

64R$1.358,

64R$1.358,

64




TotalR$9.193,

84R$9.230,

61R$9.267,

39R$9.304,

65R$9.341,

92R$9.379,

19R$9.416,

94R$9.454,

21R$9.491,

96R$9.530,

21R$9.568,

46R$9.606,

70




TotalR$12.87

1,37R$12.92

2,86R$12.97

4,34R$13.02

6,32R$13.07

8,79R$13.13

0,76R$13.18

3,23R$13.23

6,18R$13.28

9,14R$13.34

2,10R$13.39

5,54R$13.44

8,99


Number of FTEs 0,20 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14

Average burdened labor cost per FTE (per month) R$12.199 R$12.199 R$12.199 R$12.199 R$12.199 R$12.199 R$12.199 R$12.199 R$12.199 R$12.199 R$12.199 R$12.199

TotalR$2.439,

43R$1.708,

01R$1.708,

01R$1.708,

01R$1.708,

01R$1.708,

01R$1.708,

01R$1.708,

01R$1.708,

01R$1.708,

01R$1.708,

01R$1.708,

01

Facilities and Overhead 1 2 3 4 5 6 7 8 9 10 11 12

Costs per server R$735,51 R$735,51 R$735,51 R$735,51 R$735,51 R$735,51 R$735,51 R$735,51 R$735,51 R$735,51 R$735,51 R$735,51

Cost per GB storage R$0,16 R$0,16 R$0,16 R$0,16 R$0,16 R$0,16 R$0,16 R$0,16 R$0,16 R$0,16 R$0,16 R$0,16

Cost per GB database R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22

TotalR$1.500,

76R$1.501,

27R$1.501,

76R$1.502,

27R$1.502,

80R$1.503,

34R$1.503,

87R$1.504,

42R$1.504,

97R$1.505,

54R$1.506,

11R$1.506,

71


Setup costs per new server R$563,89 R$563,89 R$563,89 R$563,89 R$563,89 R$563,89 R$563,89 R$563,89 R$563,89 R$563,89 R$563,89 R$563,89

Setup costs per new database

R$2.815,36

R$2.815,36

R$2.815,36

R$2.815,36

R$2.815,36

R$2.815,36

R$2.815,36

R$2.815,36

R$2.815,36

R$2.815,36

R$2.815,36

R$2.815,36

Setup costs per new network device R$422,92 R$422,92 R$422,92 R$422,92 R$422,92 R$422,92 R$422,92 R$422,92 R$422,92 R$422,92 R$422,92 R$422,92

TotalR$12.11

9,52R$3.379,

25 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00R$422,9

2 R$0,00 R$0,00 R$0,00

Total Year 1R$204.9

43R$50.18

0R$29.31

8R$29.41

0R$29.50

0R$29.59

0R$29.68

2R$29.77

4R$34.44

6R$30.02

9R$30.12

1R$30.21

5



- Year 2 Year 2





Microsoft Windows® Azure™ Platform TCO AnalysisInitial cost per new server R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727


TotalR$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43



New Data (GB added) 3,20 3,25 3,31 3,36 3,42 3,47 3,54 3,58 3,65 3,71 3,78 3,84











Bandwidth 1 2 3 4 5 6 7 8 9 10 11 12

Networking

Hardware units 19,0 19,0 19,0 19,0 19,0 19,0 19,0 19,0 19,0 20,0 20,0 20,0



R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15


TotalR$1.358,

64R$1.358,

64R$1.358,

64R$1.358,

64R$1.358,

64R$1.358,

64R$1.358,

64R$1.358,

64R$1.358,

64R$5.516,

30R$1.430,

15R$1.430,

15


Inbound GBs per month 19.670,00 19.749,00 19.828,00 19.907,00 19.987,00 20.067,00 20.147,00 20.227,00 20.308,00 20.390,00 20.471,00 20.553,00


TotalR$9.644,

95R$9.683,

69R$9.722,

42R$9.761,

16R$9.800,

39R$9.839,

61R$9.878,

84R$9.918,

07R$9.957,

78R$9.997,

99R$10.03

7,71R$10.07

7,92




TotalR$13.50

2,93R$13.55

6,87R$13.61

1,29R$13.66

5,72R$13.72

0,15R$13.77

5,07R$13.83

0,47R$13.88

5,39R$13.94

1,29R$13.99

6,70R$14.05

3,09R$14.10

8,99


Number of FTEs 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14


TotalR$1.776,

25R$1.776,

25R$1.776,

25R$1.776,

25R$1.776,

25R$1.776,

25R$1.776,

25R$1.776,

25R$1.776,

25R$1.776,

25R$1.776,

25R$1.776,

25





Microsoft Windows® Azure™ Platform TCO AnalysisCost per GB database R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22

TotalR$1.507,

30R$1.507,

91R$1.508,

55R$1.509,

16R$1.509,

79R$1.510,

45R$1.511,

10R$1.511,

75R$1.512,

45R$1.513,

14R$1.513,

84R$1.514,

57




R$2.927,97

R$2.927,97

R$2.927,97

R$2.927,97

R$2.927,97

R$2.927,97

R$2.927,97

R$2.927,97

R$2.927,97

R$2.927,97

R$2.927,97

R$2.927,97


Total R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00R$439,8

3 R$0,00 R$0,00

Total Year 2R$30.37

6R$30.47

0R$30.56

6R$30.66

0R$30.75

6R$30.85

0R$30.94

6R$31.04

2R$31.14

1R$35.83

3R$31.40

6R$31.50

4



- Year 3 Year 3




Initial cost per new server R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727 R$35.727


TotalR$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43R$1.107,

43



New Data (GB added) 3,90 3,97 4,03 4,10 4,16 4,24 4,30 4,39 4,45 4,52 4,61 4,67




Relational Database 1 2 3 4 5 6 7 8 9 10 11 12

Number of database servers 2 2 2 2 2 2 2 2 2 2 2 2

Number of new database servers 0 0 0 0 0 0 0 0 0 0 0 0



TotalR$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15R$1.189,

15

Number of databases 2 2 2 2 2 2 2 2 2 2 2 2

Number of new databases 0 0 0 0 0 0 0 0 0 0 0 0

Database storage (in GB) 24,0 24,4 24,8 25,2 25,6 26,1 26,5 27,0 27,4 27,9 28,4 28,9

New Data (GB added) 0,4 0,4 0,4 0,4 0,4 0,5 0,4 0,5 0,4 0,5 0,5 0,5

Cost per new database R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0 R$0

Cost per database per month R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58 R$122,58



TotalR$251,8

7R$251,9

3R$251,9

9R$252,0

3R$252,1

0R$252,9

9R$252,2

4R$253,1

2R$252,3

6R$253,2

4R$253,3

2R$253,3

8



Microsoft Windows® Azure™ Platform TCO AnalysisNumber of Service Bus connections 2 2 2 2 2 2 2 2 2 2 2 2






Bandwidth 1 2 3 4 5 6 7 8 9 10 11 12

Networking

Hardware units 20,0 20,0 20,0 20,0 20,0 20,0 20,0 20,0 20,0 20,0 21,0 21,0



R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15

R$4.086,15


TotalR$1.430,

15R$1.430,

15R$1.430,

15R$1.430,

15R$1.430,

15R$1.430,

15R$1.430,

15R$1.430,

15R$1.430,

15R$1.430,

15R$5.587,

81R$1.501,

66


Inbound GBs per month 20.635,00 20.718,00 20.801,00 20.884,00 20.967,00 21.051,00 21.135,00 21.220,00 21.305,00 21.390,00 21.476,00 21.561,00


TotalR$10.11

8,12R$10.15

8,82R$10.19

9,52R$10.24

0,22R$10.28

0,92R$10.32

2,11R$10.36

3,29R$10.40

4,97R$10.44

6,65R$10.48

8,33R$10.53

0,50R$10.57

2,18




TotalR$14.16

5,37R$14.22

2,25R$14.27

9,13R$14.33

6,01R$14.39

3,38R$14.45

1,24R$14.50

9,10R$14.56

6,96R$14.62

5,31R$14.68

3,66R$14.74

2,50R$14.80

1,34


Number of FTEs 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14 0,14


TotalR$1.847,

18R$1.847,

18R$1.847,

18R$1.847,

18R$1.847,

18R$1.847,

18R$1.847,

18R$1.847,

18R$1.847,

18R$1.847,

18R$1.847,

18R$1.847,

18




Cost per GB database R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22 R$0,22

TotalR$1.515,

29R$1.516,

02R$1.516,

78R$1.517,

53R$1.518,

31R$1.519,

11R$1.519,

90R$1.520,

74R$1.521,

56R$1.522,

40R$1.523,

28R$1.524,

15




R$3.045,08

R$3.045,08

R$3.045,08

R$3.045,08

R$3.045,08

R$3.045,08

R$3.045,08

R$3.045,08

R$3.045,08

R$3.045,08

R$3.045,08

R$3.045,08


Total R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00 R$0,00R$457,4

2 R$0,00

Total Year 3R$31.67

4R$31.77

2R$31.87

2R$31.97

0R$32.07

0R$32.17

2R$32.27

2R$32.37

5R$32.47

5R$32.57

7R$37.29

6R$32.85

5


microsoft windows azure platform tco calculator

Documents

microsoft dynamics

microsoft website

analysis report

powerful platform

windows server

innovative services

new applications

report v2