Cloud services are a beneficial technology for enterprises. Before moving their IT businesses would want to know how much would the cloud cost them? Will they benefit more with an IaaS provider or is it better to build their own infrastructure. While calculating the cloud cost, the major considerations that a provider looks at include compute, storage and network.
Compute:The computing requirements vary for each organization. CPU cost is calculated by considering the individual organization's cost per GB of virtual RAM. The virtual RAM that is deployed in the public cloud divided by the user's rack unit of hardware. It also includes all licenses, subscription costs and type of operating system. The hardware costs are depreciated over the hardware life-cycle.
Storage:Storage is also calculated on similar lines. The storage hardware and corresponding new hardware that an organization needs are divided from the total storage.
Network:The expense involved in maintaining the network is considered. The calculation includes network hardware, labor and infrastructure maintenance costs. It includes security, load balancers, firewalls, LAN switching, routing, patch panels, uplinks. Labor covers the salaries and perks to the technical staff who do round the clock server monitoring, troubleshooting etc. to ensure up-time and availability of the cloud.
The other expenses like power and cooling, at data centers, software licenses, support etc. are split and shared with other users on the public cloud making it very affordable.
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