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Nerdio Fundamentals: Nerdio Cost Estimator (Part 1 IaaS Use Case)

0 commentsJuly 18, 2019Videos

Joseph Landes
In this session we are going to talk about an incredibly popular tool that Nerdio has to offer. The Nerdio Cost Estimator. We know that one of the biggest challenges MSPs face in building a cloud practice in Microsoft Azure is deeply understanding the cost of purchasing Azure from their distributor, or in some cases directly from Microsoft. MSPs are concerned that in moving to a consumption based selling model that they may accidentally quote their customers an incorrect or unrealistic price for Azure services.

Joseph Landes
The Nerdio Cost Estimator aims to solve this challenge by providing MSPs with an easy to use tool that has taken into account all of the pricing challenges one may encounter when quoting Azure deals to their customers. We have organized our Cost Estimator by the most common used cases an MSP would deploy Azure. In the session today, we will walk you through the Cost Estimator taking a look at IaaS, or the use case where a customer wants to take on-premise servers, move them to the cloud and then manage them, auto-scale them, or back them up. Certainly one of the most common use cases in the market today. There will be further sessions where we go deeper into other use cases including, IT as a service, and desktop as a service. Enjoy this session.

Vadim Vladimirskiy
So there are a number of different ways you can do it. The hard way to do it, or maybe the, one way to do it is just provision what you think you need, let it run, and then next month see what it actually costs, right. That’s one way to do it. It’s probably the most precise way because it’s not really an estimate, that’s going to be an actual. It’s going to come out of Microsoft’s billing system, it’s going to tell very precisely what things are cost, but you can obviously understand, that’s not acceptable in most scenarios because partners are offering this as a service to customers and most customers don’t want to have no idea as to how much something is going to cost them until after they’ve used it. So, letting it run and seeing how much it costs is not really a viable way of pricing Azure.

Vadim Vladimirskiy
The other option is, understanding in very great level of detail, every piece of Azure infrastructure, every single type of resource, and how every single resource is billed. So, for instance, if you’re going to be provisioning VMs you need to understand that, okay, VMs consist of compute which is CPU and RAM. They also need to know OS disk, you also need to understand that there is a way of doing this pay as you go. You can reserve it for a year, reserve it for three years. You can bring your own license or you can rent the OS license from, from the Azure’s subscription and then you would need to understand all the different types of VMs that are out there. The B-Series, which are burstable or the D-Series which are not burstable, E-Series which have high RAM to CPU ratio, et cetera.

Vadim Vladimirskiy
Then you will go in and kind of line by line assemble your architecture, and to build out an architecture on paper then go through and figure out what each and every VM will need. You know, this VM is going to be of such and such size and it’s going to be, it’s going to cost you this much, and then it’s going to have an OS disk that’s going to cost you that much, right, so kind of go through the process manually. Obviously very difficult, very time intensive, certainly learn Azure really, really well, by going through that process multiple times, but really not practical in most situations. So letting it run and seeing how much it costs after the fact, not feasible. Manually building an architecture and then pricing out each and every component, very difficult and also probably not feasible just because chances of missing something are pretty high.

Vadim Vladimirskiy
The third way to do it is by using a tool that Microsoft provides called an Azure Pricing Calculator, and the Azure Pricing Calculator, is very powerful and very, you know, robust type of a tool. It has all of the various Azure products, everything from compute, networking, and storage, all the way to all of the platform services, such as web apps and SQL, and all kinds of data base and containers, everything else that Azure has. The focus of our discussions here are, in this top three things, compute, networking and storage. So if you’re using the Azure Calculator you would still need to somehow architect an Azure based solution on paper or in Visio, to figure out what’s needed. But then you have a single place where you can come in and start putting things into a price estimate.

Vadim Vladimirskiy
So, for instance, if you wanted to price out the VM you can click on VM you can give it a name, you can then select what region it’s going to be in, what operating system it will run, whether or not it will have SQL server on it. You can select the type of tier that this VM will run in, you’ll select the instance based on how much CPU and RAM. You will then decide what to do with pay as you go, versus reservations, and then you will decide on the OS disk that goes into that VM, whether it’s standard or premium and if it’s standard, how many transactions, et cetera. So, this makes job a little bit easier where you don’t have to keep track of things manually, you don’t have to have a million tabs open to know how to price VMs and how to price storage. It brings it all together for you in one place, but as you can tell this is still pretty labor intensive and most importantly it requires a starting point where you have an architecture already in mind or on paper, to start building this quote. You can’t just come in here and by building this quote figure out what the architecture must be, because this is just helping you translate a desired state into what the components are in order to give you a price.

Vadim Vladimirskiy
So that’s one way to do it, so that’s the third method we discussed. One thing about this price estimator is that you can go in and you can export it as a quote. It’s going to give you a nice Excel Spreadsheet with all the skews for each and every line item you’ve selected. You can save them, you can share them with others, so very, very functional and powerful tool. Requires you to have an architecture designed, and requires pretty high level of understanding of what all the pieces are and how they work and what the differences are. So like if you’re dealing with VPNs, it says okay you have all these different VPN types but you don’t really know what each one means. So, then you have to go in and actually click on product details and understand that there is this kind of tunnel and that kind of tunnel and one costs more than the other one because it has different characteristics. So, again, very price intensive type of a process, or labor intensive I should say.

Vadim Vladimirskiy
So, in order to provide a, you know, an alternative, and one that is easier for our partners to use, we created our own tool that does two things. It’s designed to both, architect a solution based on certain business level information about an IT environment, without someone having the expertise and understanding all the nuances of Azure. So that tool architects it and then by, through architecting it, it also prices it out and gives the partner a pretty good degree of control about turning things on an off. It also brings in a lot of the information needed to make decisions about VPN or about any other sort of components in line with the process of creating the quotes, instead of having to go off on a separate page, re-documentation. We provided information kind of, in little snip its and tool tips within that tool.

Vadim Vladimirskiy
The name of that tool is the NFA Cost Estimator, not to be confused with the Azure Price Calculator. So this thing is called Pricing Calculator our tool is called NFA Cost Estimator and it takes into account not just Azure but also things like RDS licensing, Office 365, and the cost of Nerdio. Now the Price Calculator, one thing I wanted to mention, is that the public version doesn’t really have a way of incorporating your discounts as a partner. So, partners get certain level of discounts from maybe their distributor or from Microsoft directly, and like it doesn’t integrate that there is a way to log into your own partner portal and someplace Microsoft has a way of you running your cost estimator that has those discounts integrated. So that’s one of the other things that the NFA Cost Estimator does is it lets you incorporate those discounts into the overall analysis. And we’re doing a lot of development and a lot of work on the cost estimator to improve it even better, to provide more information that is most relevant to the partners and make it as easy as possible for them to play with what if scenarios.

Vadim Vladimirskiy
So with that introduction let’s start looking at the cost estimator. If we go to NFA Cost Estimator this is going to open up a screen that looks like this and it’s going to tell us that there are four major cost components. There is Azure consumption, Office 365, RDS, and Nerdio licensing, and this tool will help you estimate the costs for each of the components. And the first thing you got to decide on is the use case for which you’re going to be running this tool. So in the previous version of this we did not have this selection, and then people had to make a lot of decisions in line, sort of, as they went through this screen. And what we decided to do, is we’re going to curate this a little bit and we’re going to ask them, “okay what are you really trying to accomplish?” And there’re four use cases here. We’ll actually go through examples of each one, and we’ll start with the simplest one, all the way on the left and then go to the most complete one all the way on the right and then do the middle two.

Vadim Vladimirskiy
So let me explain what these use cases are. So the first one we call line-of-business servers, and the way to think about it is, it’s basically IaaS, or infrastructure as a service, that has no desktop component. You know, the caption, we’ll just read it out, says, “Manage auto-scale and back up of, back up line-of-business applications and databases in Azure. Extend existing network and AD into Azure. Configure auto-scale and back up and DR of server VMs. Manage the entire environment from an easy-to-use, three clicks or less, management protal.” And if you select this option you’ll see below that selections will change, so it’s going to reduce the number of options you have, into three additional sections.

Vadim Vladimirskiy
So let’s do this use case first. So the line-of-business use case doesn’t have a desktop component so there’s going to be nothing that’s tied to a user or to a desktop, everything is going to be from a perspective of infrastructure. So section number one is servers. And you can see here, there are, by default, three servers that were placed onto this sheet right here, and you can see two of them have a delete button. So the first server is DC01, which is the domain control of [inaudible 00:12:09] provision in Nerdio and that is a mandatory server that has to be part of the environment even if it’s not going to have any desktops. This is what NAP uses to orchestrate a lot of the AD configuration, Azure AD synchronization, and all kinds of other stuff that NAP does is all done through this DC01.

Vadim Vladimirskiy
The second server that’s common, but not mandatory, that’s been placed on this estimate because it’s usually deployed but doesn’t have to be is the file servers. If someone wants to have an additional server for things like file, or printers, or some application that may be running in the cloud, again remember there is no virtual desktop in this use case. So the file server would be used by mounting direct UNC or mapping drives, over a VPN or something, so the file sever was placed here. And then there is a third server that is basically, well, why would you be provisioning in Azure environment unless you had some application sever, line-of-business server as we call it, to actually put into Azure. So that’s why there are three, however we can go ahead and we can actually delete them if we don’t need additional ones.

Vadim Vladimirskiy
So once you have this section right here we can go ahead and change the instance size of the domain controller. So the minimum it can start out with is a single core, three and a half gig of RAM VM, but it could be really anything else, you know, a popular size that we’re seeing that seems to work pretty well in small to mid-size environments is this burstable, two core, eight gigs of RAM VM. So, you can make that change, you can see this selector button, selector box, is very convenient because you can use it as a drop down but you can also type in any portion of anything here and it will automatically match it, even if it’s not in the beginning of the lines. If I’m looking for something that has, 64 cores, I’ll just type in 64 C, and it’s going to filter it down to everything that has 64 cores. If I need something with 32 gigs of RAM then I have everything that has 32 gigs of RAM. So really nice convenient drop down.

Vadim Vladimirskiy
The second selection is the OS disk, okay, and again we support three types of disks. S which is standard HDD, E which is standard SSD, and P which is premium SSD. If you will recall that standard SSD and standard HDD also have operations associated with them, they are slower and premium SSD does not have an operations related charge and they’re more expensive. So if you’re configuring DC01 in the cloud, you may decide that you want an SSD disk so you filter down to SSD and you’ll decide that you need a P10 which is 128 gigabyte premium SSD.

Vadim Vladimirskiy
The next selection is the data disks. Same thing here, it’s optional so there is a non-selector here where there’s not a non-selector on the OS disk, that’s mandatory. So you, for domain controller you probably won’t have a disk right here. If you’re going to do FS01 great, if you’re not going to do FS01 just delete that from the list and then you can add additional servers. And by adding a sever you simply click on the add button, you can click it multiple times.

Vadim Vladimirskiy
One nice feature here is once you add this, let’s call this SQL01, let’s say there is going to be a database in an application sever that you’ll be hosting. You can then configure the size of that database server, so let’s say we want a four core VM and that because it’s a database we need all the cores to be dedicated so we’ll use a D4V3. We are going to have a slower, well let’s do a faster, C drive, a 128 gigs, and a larger, faster data drive of 512 gigabytes P20, right there. Now when I click add another server, let’s say I’m also going to have SQL02, what you’ll notice it’s going to clone the settings of the previous server that I added. So instead of starting fresh with whatever the default was it’s actually going to give you the option of just duplicating the previous option you selected, so let’s say SQL02, same kind of configuration but this one is going to be maybe dash-test. And it needs slower disks, instead of it being 512 P let’s make it 512 E, and we’ll do the same thing here. We’re going to do E10 which is the C dive of standard SSD, okay.

Vadim Vladimirskiy
And you can obviously add more, so let’s say we’re going to have an application server, and this application server is going to be an 8 core VM, and this 8 core VM is going to be, let’s say, this D8V3, it’s going to have a P10 for an OS disk and it’s going to have no disk for the data. So that’s how you configure the server section in the case of line-of-business use case. So we now have four servers and as you’re making these changes you can see over here on the right, and also the same, this box basically floats from being at the top to kind of moving over to the side here. So as you’re making changes you can see what the effect is. So let’s say, you started out with a P10 and P20 and you saying okay, well my Azure costs or my total cost is 1169, and now let’s say I want to decrease this from a P20 to an E20, you’ll see that the cost, it went down by, whatever that was, 12 dollars or so. So you can kind of, on the side quickly see what the impact of your configuration selections are on the costs of this thing.

Vadim Vladimirskiy
Once you are done selecting servers you move on to the sections that we call other features. These are common things that get enabled when you are deploying the line-of-business server use case. So the first thing is this Azure Hybrid Usage, and you’ll recall, Azure Hybrid Usage is the right for you to not pay Microsoft for the OS license, when you’re running an Azure VM in Azure you’re not paying for the OS license if you are using the hybrid usage. Meaning you’re basically paying the rate you would be paying if you were running a Linux OS. So only the base compute rate, not the base compute plus the license OS. Now if you don’t pay Microsoft for that license, that means you have to bring that license on your own and the way you bring that license on your own is either through a software assurance on existing Widows server, a core licensing that you may already have, or through this program called CSP Software Subscriptions. Which is a way of buying a subscription to Windows Server OS either for 12 months or 36 months and instead of having to rent it from Microsoft you can bring it to the picture on your own and buy it by yourself.

Vadim Vladimirskiy
So if you change it from no to yes, that means you’re going to take advantage of Hybrid Azure, hybrid, Azure Hybrid Usage. There is a link that gives you the details about exactly how that works. And if we change it from no to yes you’ll see, there will be a fairly significant decrease in price, right. So take a note that we just went from 1104 for the Azure component, because we only have VMs right now, and we went down by bring our own license. We went down from 1104 to 561, which is really almost 50% savings of that cost, almost exactly 50% savings. So you can see that when you rent a VM from Azure a huge portion of what you’re paying for is actually the license rental. And the way the things work out if you have VMs that have CPU numbers of four and above, especially 816, et cetera, then bringing your own license is definitely going to be more cost effective and even having to purchase that license up front is going to be much more cost effective than renting it from Microsoft.

Vadim Vladimirskiy
Now the caveat is if you bring your own license that means you have to buy it as a subscription for 12 or 36 months, which means you have to pay upfront for that subscription. And if you decide that you don’t need that server half way into a 36 month test scenario you already own that license and you can’t really, you can reuse it for another server but you can’t really return it or give it back. So paying for it upfront and making commitment to a certain length of time in exchange for a fairly significant discount. Now you also notice that when I change from no to yes, one other line got added. This line is basically telling me how many cores of Windows Server I need, and here’s how this works.

Vadim Vladimirskiy
If you’re buying Windows Server through a CSP software subscription, and taking advantage of Azure Hybrid Usage, the way you buy Windows is in packs of 8 cores. So packs of 8 cores, and each pack of 8 cores can cover one VM, of up to 8 cores, what does that mean? So that means that if I have an 8 core VM, then I need a single 8 core pack to cover it. If I have a 16 core VM I obviously need two of those core packs, however, if you have less than 8 or a non-integer multiple of 8, you need to round up. So that means that even if I have a 2 core VM, I still need to purchase an 8 core pack, because that’s the only way they get sold. They get sold in 8 core packs. So for this server, for this server, for this server, and for this server, I need a dedicated 8 core pack, which is where this number 32 comes from. It’s pretty trivial when you’re only dealing with server, but when you start adding desktops and Hybrid AD and all kinds of other components into it, especially things that scale in and out, figuring out the correct number of cores is far, far from trivial and having this little line item that tells you what you need is very helpful.

Vadim Vladimirskiy
The next thing that’s kind of a big lever in terms of cost is a reservation. A reservation is a way to basically prepay for a certain amount of computes in terms of a specific family and a specific Azure region, and get a significant discount. Very similar conceptually to Azure Hybrid Usage, with a few exceptions. The similarities are you also select from either a 12 month or a 36 month commitment and you prepay for it upfront in exchange for a fairly significant discount. The things where it’s not similar is in the fact that you have to make a commitment to a particular family of VMs, so like B would be one family, D would be another family, so you have to buy reservations for family. As opposed to Azure Hybrid Usage, when you buy a license of Windows it doesn’t really matter which family it goes on, right. It can apply to D or B interchangeably.

Vadim Vladimirskiy
The other thing that’s not similar is you have to commit to a reservation in a particular physical Azure region. And that Azure region, your reservation is tied to that, as opposed to software subscriptions are again not tied to a region, not tied to a family. Also with reservations if you want to exchange a reservation, let’s say you decided you’re going to go with B series VM but later on you discover the burstable VMs are not a good fit for the work load, then you’re going to go from B to D or from D to NV or whatever the case may be. You can exchange your reservation, either because you want a different family or because you wanted to be in a different region. You first thought you were going to put it in the east but then you decided to put it in central. You can exchange your reservations with no penalties, so any unused portion of the reservation can be exchanged as a credit towards a purchase of a new one.

Vadim Vladimirskiy
So those are the differences. You can, it’s tied to a family and tied to a region, but you can exchange the family and the region for no penalty. You can also cancel a reservation, unlike software subscriptions which you cannot give back, you cannot cancel them. A reservation can be canceled and there is a small 12% penalty for doing that. Now 12% may be significant depending on how much capacity you’re reserving but the amount of savings, which we will see in a minute, that that provides you, significantly exceeds the potential penalty you may have. When would you have a penalty? In the case where you have a customer that may be initially committed to three years and then they left and now you have this reservation that you cannot reallocate to someone else. If you have to cancel it and get a refund for the unused portion of it, when you get the refund for the unused portion, they subtract 12% of the initial purchase price.

Vadim Vladimirskiy
Now, let’s see how much of a difference it makes. So right now by default you see we have set it for three years. If we set it to no, that’s going to be the pay as you go price, if we set it to no, so the price of Azure goes up to 997. So if it’s 997 down to 561, so we’re looking at 436 dollars which is again a significant savings and this savings varies by instance types or if we had different instances selected up here, the savings would be different. Some of them have more, some of them get a larger percentage discount, some get less. So you see again this is a significant lever, so if we did one year it will be somewhere in between those two numbers. So let’s look at a pay as you go price of Azure. If we did no hybrid usage, and no reservation our list price, let’s make sure we don’t have any discounts in here, we don’t. Our list price for Azure would be 1593 and if we decided to bring our own Windows and reserve things for three years, we would save, you know, 1000 dollars or more even, in that particular scenario. So very significant savings that, that’s important to keep in mind when creating this solution.

Vadim Vladimirskiy
The next option is in-region backup. You can turn it on or off, by default it’s no, we can set it to yes. What this does is it calculates the cost of backup making the following assumptions. So first of all it’s going to backup each and every server in this list. So there is a backup license fee that’s associated with this, each server based on how much storage that server has. So if you’ll recall, I think for every 500 gigabytes of storage that server has you pay 10 dollars. In this case DC01 will be 10 dollars or maybe I think the first 512 is 5 dollars, whatever it is, there’s a license fee there. But for example SQL01 it has more than 512 so you’re going to pay 20 dollars for this SQL01, or something like that.

Vadim Vladimirskiy
And then there’s also the storage fee that gets generated by creating those backups, and the assumptions that the Cost Estimator makes, which is what we commonly see, is that each disk that is listed in this section is going to be 50% utilized, so it’s not going to be empty and it’s also not going to be 100% full. It’s going to be about 50% utilized. You’re going to have a 30 day retention of that data and you’re going to see a daily delta in that data of 2% so, taking all of the data and all of these servers, which is going to be 50% of the total capacity of all the disks, and looking at 2% daily delta which is about 60%, monthly delta in that data, is going to be your estimate of how much storage is going to be used. So you can, calculating that manually pretty difficult, you know, certainly doable in spreadsheet. All you have to do here is just change this from no to a yes and it will calculate that cost for you.

Vadim Vladimirskiy
The next thing is the cost of out-of-region DR. This is using Azure site recovery, and this will add both the licensing and the storage utilization at the, another region, so that’s something that’s by default no, but you can set to yes. Then there’s also the site-to-site VPN. So we can change it from no to yes, and you can see the cost is going to update. This is because the VPN gateway was added into the cost analysis. We also have hybrid AD. So hybrid AD is, as you remember, is a way of extending an existing active director into Azure. When we enable hybrid AD, it calculates the cost of a number of things. It’s, first of all, is going to add an additional server, this is going to be a hybrid AD server, so we got to maybe update that server for the right size. You’ll also notice our number of cores has now changed, because we now have an additional 8 core pack that has to be taken into account. This is a server that cannot be deleted because we have hybrid AD enabled, and also you can see by enabling hybrid AD we can no longer disable VPN because that’s also mandatory component, right.

Vadim Vladimirskiy
So, again imagine doing all of this manually if you wanted to do hybrid AD you may account for the server, but forget to account for the VPN gateway. The NFA Cost Estimator takes care of all of that for you. So these are the other feature section, and then at the bottom we get into the cost assumptions. These are pre configured with some default values that we find to be common, but they can be overwritten and the partner can play around with them to understand what the impact is.

Vadim Vladimirskiy
So the first thing is storage operations. So, storage operations are generally charged a certain amount per 10 thousand operations. Now there’s really no easy way for anyone to answer the question of, “well how many thousands or 10’s of thousands, or millions of operations am I going to have, on which disk in the course of the month?” So instead of doing that, what we decided to do is tag on a small per gigabyte charge in addition to the storage charge to sort of proxy for the storage operation, with the assumption being that the more storage you have, the more operations you’ll have. And the cost of those operations is going to be somewhat, relevant or relative to the total, the cost per gigabyte.

Vadim Vladimirskiy
So for example, the cost of a gigabyte in premium storage is about 15 cents and the cost of a standard storage gigabyte is about 4 cents and the cost of an E disk of just standard SSD is somewhere in between that, right, so like 9 or 10 or something like that. So we’re basically tagging on another 3 cents by default for every gigabyte for standard storage. So this tells you very clearly this is standard storage only not premium storage. If we zero this out, you’ll see that the total will decrease a little bit, however if we had all of these disks set to P, so let’s go through it and go through and do that … So if we set this to P and this to P and this one as well, so now we have P disks only then basically this should not have any impact, right, because it’s only adding transactional cost to standard storage.

Vadim Vladimirskiy
The next thing is bandwidth, and the way we’re pricing bandwidth is by giving the partner the ability to estimate how much data they’ll actually transfer out of the environment, to either another Azure region or to the internet. So inbound data is free, so this is asking how much outbound data will there be. So 1000 gigabytes is about a terabyte per month, you know, that’s roughly equivalent to a, to 3 megabytes per second at 100% utilization during the month. I just happened to know that because about 330 or so gigabytes that you can transfer if you’re utilizing one megabyte of bandwidth at 100%. So this is kind of just a rough estimate, somebody will have to convert that to what they really think is realistic. Now let’s see how sensitive it is to this number. So if we go from 1 to 1001, you know, our cost is gone down, gone out from 687, so not much. But let’s go from 1000 to 2000, so 687 to 674, all right. So for every, 1000 gigabytes it looks like we’re adding, whatever that was, 80 dollars or so. Did I get that right? 674 … yeah, about 90 dollars or so.

Vadim Vladimirskiy
Okay, the next thing is where the discounts can be specified. So a partner generally is buying Azure through their CSP provider or directly from Microsoft and they can have various levels of discounts, anywhere up to 15%, 8%, 9%, 5%, whatever it may be. So they can go in and type in their own discount and then the calculator will take that into account. So let’s say they have a 8% discount, that’s going to apply to the right place.

Vadim Vladimirskiy
The next thing is the Azure discount for reservations. So reservations get a different discount than standard type of storage. So when we apply a reservation discount, like you’ll see if I change this to zero, the price obviously going to go up, if I change it to five, I believe five is the maximum you can get in reservations, so let’s leave that at two. And then the final two selections are the region, and the price does vary a little bit per region. Certainly if you go outside of US. So let’s say we’re currently in South Central and we’re at 667, let’s go to West US and you can see that our price went up, 667 to 708. It just has to with the real time availability of resources, and this data gets refreshed on a pretty regular basis. Now if you go to Europe we have 708 going down to 692. If we go to East Asia our price went up to 869, so there is some variability depending on the region.

Vadim Vladimirskiy
And then finally we also have support for various currencies for our international partners. So if you want to obviously do this in Europe, and you wanted to see the price, there’s a UK region, in British pounds, it would convert that for you. Now it’s not based on any particular exchange rate, it’s actually based on the published price of resources in the UK in British pounds. Good, now once you’ve completed this, and again we only went through the simplest of the pricing scenarios, line-of-business, you have the total price right here. What you can then do is click view costs which is going to give you a more detailed break down, and let’s look through this.

Vadim Vladimirskiy
So we have a per month price for the total environment broken down by categories. So we have our Azure price, we have our Nerdio price, and we also have an AHU requirement of 40 cores. This is a summary of what we’ve turned on and off. So we’ve turned on to have backup, we’ve turned on to have hybrid usage enabled, to have selected three years of reservations and we’ve decided to not have DR. This is what we’ve selected in terms of servers, so we know exactly, that we’re quoting the right thing.

Vadim Vladimirskiy
And then this section, before we look at the totals let’s look through here, breaks this cost, this 555 pounds down into sub components. So this is how much bandwidth is, this is how much server compute is, this is how much backup is, this is what the server storage is going to be, this is how much site-to-site VPN is, and then all of the other assumptions we made such as hybrid AD, Azure region, CSP discount, whether we’re using hybrid usage, et cetera. So all of that is also reflected here. And then this is what the average monthly price is, remember we selected three years reservations so our analysis needs to be over the course of 36 months. So over 36 months, if you take 36 and multiply times this, you’re going to get the total cost. But the way it actually breaks down is because you’re buying reservations you’re going to pay this much, 9320 upfront for the reserved instances, plus you’re also going to need AHU, 40 cores of that, and again, in a future version we’ll have that cost in here too, but for now you need to calculate that separately. And then once you have this upfront you then pay 304 pounds per month for the remaining 35 months.

Vadim Vladimirskiy
Okay, once you have this data calculated you can label this estimate. There is a little edit button up here, and you can say this is going to be for ACME Corp and then you’ll be able to click print and this will generate a nice PDF file that will have all of that information listed. Now this is the costs to the partner not necessarily the price or unlikely to be the price to the end customer. So that’s even an important thing to keep in mind, this is what the partner would pay, to Microsoft based on the selections that they’ve made.

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