Cloud Total Cost of Ownership Calculation Guide

This guide presents the concept of Cloud Total Cost of Ownership (TCO), which involves calculating all direct and indirect costs associated with selecting, deploying, and maintaining a cloud-computing environment. It emphasizes the importance of including costs related to migration from on-premises systems to cloud solutions. The document outlines the need for a comprehensive approach to capture visible and hidden costs, including labor, maintenance, software licenses, and unexpected charges. It also highlights the necessity of considering costs across various departments to achieve an accurate TCO. Additionally, the guide discusses the drivers that impact TCO and compares on-premises systems with cloud-hosted solutions. It details the steps for creating a TCO, including evaluating new and existing systems, and the implications of server management on overall costs. The guide concludes by noting that organizations may reach different conclusions regarding TCO based on their unique circumstances and needs.