Estimate the potential cost savings or increase by migrating your on-premise infrastructure to Amazon Web Services (AWS). This calculator provides a simplified comparison of annual costs, helping you understand the financial implications of cloud adoption.
Current On-Premise Costs (Annual Estimate)
Enter your current infrastructure and operational costs. These values will be used to estimate your annual on-premise expenditure.
Estimated AWS Costs (Annual Estimate)
Provide estimates for your equivalent infrastructure and operational costs on AWS. These values will be used to project your annual AWS expenditure.
TCO Calculation Results
Enter values and click "Calculate TCO" to see your estimated costs and savings.
Understanding AWS Total Cost of Ownership (TCO)
Total Cost of Ownership (TCO) is a financial estimate designed to help consumers and enterprise managers determine the direct and indirect costs of a product or system. When considering a migration to Amazon Web Services (AWS), TCO analysis is crucial for making informed business decisions.
Why Calculate AWS TCO?
Migrating to the cloud, specifically AWS, involves more than just comparing monthly bills. A comprehensive TCO analysis helps you:
Justify Cloud Migration: Provide a clear financial case for moving from on-premise infrastructure to AWS.
Identify Hidden Costs: Uncover expenses often overlooked, such as power, cooling, physical security, and IT staff time spent on maintenance.
Forecast Future Spending: Gain a better understanding of your potential operational expenses in the cloud.
Optimize Resource Allocation: Highlight areas where cost savings can be achieved, both on-premise and in AWS.
Evaluate ROI: Measure the return on investment for your cloud initiatives over time.
Key Components of On-Premise TCO
Before you can assess the benefits of AWS, you need a clear picture of your current costs. Typical on-premise TCO components include:
Hardware Costs: Servers, storage arrays, networking equipment, and their depreciation over their lifespan.
Software Licenses: Operating systems, databases, virtualization software, and application licenses, including annual maintenance.
Data Center Facilities: Rent, power consumption, cooling systems, physical security, and environmental controls.
IT Operations Staff: Salaries, benefits, and training for personnel managing hardware, software, networking, and security.
Maintenance & Support: Contracts for hardware and software support, patching, and upgrades.
Backup & Disaster Recovery: Costs associated with maintaining redundant systems, offsite storage, and DR testing.
Key Components of AWS TCO
AWS costs are typically operational expenses (OpEx) rather than capital expenses (CapEx). Key components include:
Compute Services: Costs for EC2 instances, Lambda functions, ECS/EKS containers, etc., based on usage (instance type, duration, region).
Storage Services: Costs for S3, EBS, EFS, Glacier, etc., based on capacity, access patterns, and data transfer.
Database Services: Costs for RDS, DynamoDB, Aurora, etc., based on instance size, storage, and I/O.
Networking & Data Transfer: Costs for data transfer out of AWS regions, VPNs, Direct Connect, and load balancers.
Managed Services: Costs for services like CloudWatch (monitoring), AWS Config (compliance), AWS Backup, Security Hub, etc.
Migration & Training: One-time costs associated with migrating applications and data, and training staff on AWS technologies.
Optimization: While not a direct cost, the ability to optimize costs through Reserved Instances, Savings Plans, Spot Instances, and auto-scaling is a significant factor in reducing overall AWS TCO.
How This Calculator Works
This calculator provides a simplified TCO comparison by estimating annual costs for both your current on-premise setup and a comparable AWS environment. It takes into account:
On-Premise Depreciation: Spreads hardware and storage costs over their expected lifespan.
Operational Expenses: Includes staff salaries, facility costs, and software licenses for on-premise.
AWS Service Estimates: Uses average monthly costs for compute, storage, and databases, along with data transfer and a percentage for managed services overhead.
Migration Amortization: Distributes one-time migration and training costs over a specified number of years to reflect an annual impact.
Important Considerations
This calculator offers a high-level estimate. A detailed TCO analysis should also consider:
Indirect Costs/Benefits: Increased agility, faster time-to-market, reduced risk, improved security posture, and the ability to innovate.
Staff Re-skilling: The cost and benefit of training existing staff or hiring new cloud-skilled personnel.
Application Refactoring: The effort and cost involved in modifying applications to be cloud-native.
Pricing Models: The impact of Reserved Instances, Savings Plans, and Spot Instances on AWS costs.
Specific Workload Requirements: Different applications have different cost profiles.
Use this tool as a starting point for your TCO analysis. For a precise estimate, consider using the official AWS TCO Calculator or engaging with AWS solution architects.