How Much Does a Cloud Cost? How Can You Calculate an Accurate Estimate?

A key benefit of using cloud computing is transforming capital expenses into operational expenses. This, however, means it’s important to have good estimates of the cloud expenses before you commit to the change.

Recently a customer needed help identifying what it would cost to run an application on the cloud. Here’s what we did to help them, which may be of interest to you as well.

First, we ran our product Snapshot to collect the application parameters of configuration, resource utilization and to map all dependencies. This chart shows all of these items

Then we used our cloud readiness analyzer to determine the best-fit vendor templates for that application based on resource consumption. In this chart, the green dot denotes the template that is the best fit for the application and its resource requirements.

This process also helps determine templates for hybrid clouds. Now, we can determine the costs for the application by summing the template costs.

This method also works well for multiple applications or workloads. In addition, the dependency mapping shows you how to spread workloads across multiple clouds.

With the accurate, estimate produced from this process, you are positioned to track actual costs versus your estimate. You will quickly catch any errors or pricing changes, and you’ll avoid any unpleasant surprises

If you or one of your customers has a similar need and would like to learn more, I’m happy to help with a quick consultation or even a free demo of Snapshot.