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How To Calculate The Approximate Price of Cloud Computing

How To Calculate The Approximate Price of Cloud Computing

Before asking the average cost of cloud computing, it is a prerequisite to understanding the cloud computing server cost along with another cost of cloud computing. If you want to know how much does cloud computing cost, this article is sure to help you. The three primary cost centers which are related to the cloud environment are inclusive of computing, network, and storage.

  • Network

At the time of setting the cloud computing costs, service providers of cloud require determining the expenses in order to maintain the network. They initiate the same by the calculation of prices for network hardware, labor, and maintenance of network infrastructure. These expenses are added altogether after which it is divided by the total number of rack units which are required by the business for the cloud. Some of the factors which are included in the costs are inclusive of:

  • Price of network hardware

Every virtual server needs the provider to invest in specific types of network hardware. They purchase hardware and depreciate the price of the lifecycle of each device.

  • Maintenance of network infrastructure

These costs for cloud computing are inclusive of security tools which are inclusive of LAN switching, firewalls, load balancers, patch panels, uplinks, and routing. All these infrastructures are indispensable for a smooth running of the network.

  • Labor

This cost of cloud computing for staff is for the maintenance, management, monitoring and troubleshooting cloud computing infrastructure. The staff should be available 24*7 in order to ensure uptime as well as availability for the cloud environment.

  • Compute

Every business comes with the unique set of requirements which are inclusive of the use of CPU. Most of the providers calculate the price of CPU with the determination of the price of the respective company for each GB of virtual RAM which is inclusive of:

  • Hardware operation

Here the total amount of virtual RAM that is deployed in the public clouds is taken into account after which it is divided into the price for every rack unit of the hardware. The price is inclusive of usage based and subscription price and licensing that depends in accordance with the virtual operating system.

  • Hardware acquisition

The computation lets the provider know about the price for acquiring hardware for every GB of virtual RAM which you will use. They will be depreciating the price over the hardware lifecycle.

  • Storage

Storage is similar to the computed price. The cloud computing service provider calculates the amount which is required for the operation of storage hardware and acquiring new hardware for the storage requirements.

  • Shared costs

The price for individual cloud computing infrastructure is not the only cost which is included in the price quote. The quotes also include a portion of the costs for powering and cooling the underlying infrastructure of the cloud platform present in the datacenter. The price quote may be inclusive of the charges which are related to hosting, software licenses, support along with different service components. Sharing these prices with different organizations in public makes them cost effective.

The most common and well-established procedure to estimate the potential costs of cloud computing is the calculation of total cost of ownership. Cloud computing is known to save an ample amount of money in comparison to traditional on-premise infrastructure:

  • Cloud Computing Cost Savings

It goes without saying that every business is unique and due diligence is a prerequisite for the same. You will notice that cloud computing has a reduced TCO and thus will assist in saving an ample amount of money. This is considered to be one of the most compelling factors after replacing the on-premise systems as well as infrastructure with the cloud services. Here are five benefits of cloud computing:

The acquisition price is much lower as the equipment are rented. The software licenses are subscription based which results in lower acquisition price. Businesses are becoming more careful and reaping the benefits of existing licensing models which come with the subscription like flexibility.

Costs feature the all inclusive price for each month for each user, pay per use models or pay as you go aid in making calculations much easier as well as predictable. For several businesses, these costs are becoming the expense for operation.

Cloud implementations are known to have a higher longevity as hardware do not become obsolete or are incapable of operating the application or software. Hence, it is not your job to make sure that the hardware is working in a perfect manner. It is much easy to manage and update the software in the cloud.

It is possible to scale up and down different server resources for the purpose of computation. Hence, operating expenses should be aligning with the customer and internal demands.

[su_note note_color=”#c9c9c7″ radius=”5″]Recommended to Read: Top 10 Cloud Computing Companies [/su_note]

It is possible to reduce the ratio of in-house personnel to system resources as service providers of cloud monitor as well as manager configuration, server provisioning, maintenance as well as upgrades. Service providers of cloud computing are capable of monitoring and managing configuration, server provisioning, maintaining as well as upgrading. Thus, you can make the existing IT sources free for applying the time for the innovation and improvement of the operations of the business.

While making use of cloud services, the total price of ownership is reduced. The total cost of ownership can be calculated and predicted at ease. It is easy to achieve short term expense management in comparison to run premise systems.

The cloud computing cost calculator is considered to be the centralized respiratory for the purpose of cloud computing research which is inclusive of a wide assortment of white papers, IT tools as well as technology calculators.

In addition to up-front prices, there are other costs that need to be taken into account

Backup and storage price

  • If the stated limit mentioned in the contract is exceeded, specifically if the requirements of data have not been planned or estimated in a correct way.
  • The time required for moving on-premise data and software to the cloud servers which are inclusive of the possibility to have the adjust license licensing models.
  • The initial rise of operational complexity as well as learning curve at the time of transition.
  • The price of ongoing on premises personnel who will be monitoring and managing the interface of the cloud service provider.

About the author

Steven Hansen

Steven Hansen is a founder of Techeries. He is a specialist in digital security solution business design and development, virtualization and cloud computing R&D projects, establishment and management of software research direction. He also loves writing about data management and cyber security.

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