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**Azure recommended to minimize cost** | You can get the most cost efficient and compatible target recommendation in Azure across Azure IaaS and Azure PaaS targets | For SQL Servers, sizing and cost comes from the *Recommended report* with optimization strategy- minimize cost from Azure SQL assessment. For web apps, sizing and cost comes from Azure App Service assessment is picked. For general servers, sizing and cost comes from Azure VM assessment.
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**Migrate to all IaaS (Infrastructure as a Service)** | You can get a quick lift and shift recommendation to Azure IaaS. | For SQL Servers, sizing and cost comes from the *Instance to SQL Server on Azure VM* report. For general servers and servers hosting web apps, sizing and cost comes from Azure VM assessment.
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**Modernize to PaaS (Platform as a Service)** | You can get a PaaS preferred recommendation that means, the logic identifies workloads best fit for PaaS targets. General servers are recommended with a quick lift and shift recommendation to Azure IaaS | For SQL Servers, sizing and cost comes from the *Instance to Azure SQL MI* report. For web apps, sizing and cost comes from Azure App Service assessment. For general servers, sizing and cost comes from Azure VM assessment.
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Although the business case picks Azure recommendations from certain assessments, you won't be able to access the assessments directly. To deep dive into sizing, readiness and Azure cost estimates, you can create respective assessments for the servers or workloads.
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**Azure recommended to minimize cost** | You can get the most cost efficient and compatible target recommendation in Azure across Azure IaaS and Azure PaaS targets | For SQL Servers, sizing and cost comes from the *Recommended report* with optimization strategy - minimize cost from Azure SQL assessment.<br/><br/> For web apps, sizing and cost comes from Azure App Service assessment is picked. <br/><br/>For general servers, sizing and cost comes from Azure VM assessment.
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**Migrate to all IaaS (Infrastructure as a Service)** | You can get a quick lift and shift recommendation to Azure IaaS. | For SQL Servers, sizing and cost comes from the *Instance to SQL Server on Azure VM* report. <br/><br/>For general servers and servers hosting web apps, sizing and cost comes from Azure VM assessment.
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**Modernize to PaaS (Platform as a Service)** | You can get a PaaS preferred recommendation that means, the logic identifies workloads best fit for PaaS targets. <br/><br/>General servers are recommended with a quick lift and shift recommendation to Azure IaaS | <br/><br/>For SQL Servers, sizing and cost comes from the *Instance to Azure SQL MI* report. <br/><br/>For web apps, sizing and cost comes from Azure App Service assessment. For general servers, sizing and cost comes from Azure VM assessment. Although the business case picks Azure recommendations from certain assessments, you won't be able to access the assessments directly. To deep dive into sizing, readiness, and Azure cost estimates, you can create respective assessments for the servers or workloads.
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## How do I build a business case?
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If you use the appliance for discovery, it collects performance data for compute settings with these steps:
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1. The appliance collects a real-time sample point.
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-**VMware VMs**: A sample point is collected every 20 seconds
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1. The appliance collects a real-time sample point. For **VMware VMs**, a sample point is collected every 20 seconds.
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1. The appliance combines the sample points to create a single data point every 10 minutes for VMware and Hyper-V servers, and every 5 minutes for physical servers. To create the data point, the appliance selects the peak values from all samples. It then sends the data point to Azure.
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1. The assessment service stores all the 10-minute data points for the last month.
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1. When you create a business case, multiple assessments are triggered in the background.
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It covers which servers are ideal for cloud, servers that can be decommissioned on-premises, and servers that can't be classified based on resource utilization/performance data:
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- Ideal for cloud: These servers are best fit for migrating to Azure and comprises of active and idle servers:
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- Active servers: These servers delivered business value by being on and had their CPU and memory utilization above 5% and network utilization above 2%.
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- Idle servers: These servers were on but didn't deliver business value by having their CPU and memory utilization below 5% and network utilization below 2%.
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- Decommission: These servers were expected to deliver business value, but didn't and can be decommissioned on-premises and recommended to not migrate to Azure:
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- Zombie: The CPU, memory and network utilization were 0% with no performance data collection issues.
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-**Ideal for cloud**: These servers are best fit for migrating to Azure and comprises of active and idle servers:
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-**Active servers**: These servers delivered business value by being on and had their CPU and memory utilization above 5% and network utilization above 2%.
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-**Idle servers**: These servers were on but didn't deliver business value by having their CPU and memory utilization below 5% and network utilization below 2%.
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-**Decommission**: These servers were expected to deliver business value, but didn't and can be decommissioned on-premises and recommended to not migrate to Azure:
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-**Zombie**: The CPU, memory and network utilization were 0% with no performance data collection issues.
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- These servers were on but do not have adequate metrics available :
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- Unknown: Many servers can land in this section if the discovery is still ongoing or has some unaddressed discovery issues.
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-**Unknown**: Many servers can land in this section if the discovery is still ongoing or has some unaddressed discovery issues.
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## What comprises a business case?
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| Compute | Hardware | Server Hardware (Host machines) | Total hardware acquisition cost is calculated using a cost per core linear regression formula : Cost per core = 16.232*(Hyperthreaded core: memory in GB ratio) + 113.87. Hyperthreaded cores = 2*(cores)
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|| Software- SQL Server licensing | License cost | Calculated per two core pack license pricing of 2019 Enterprise or Standard. |
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|| Software- SQL Server licensing | License cost | Calculated per two core pack license pricing of 2019 Enterprise or Standard. |
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||| Software Assurance | Calculated per year as in settings. |
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|| Software- Windows Server licensing | License cost | Calculated per two corepack license pricing of Windows Server. |
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|| Software- Windows Server licensing | License cost | Calculated per two corepack license pricing of Windows Server. |
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||| Software Assurance | Calculated per year as in settings. |
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|| Virtualization software | Virtualization Software (VMware license cost + support + management software cost) | License cost for vSphere Standard license + Production support for vSphere Standard license + Management software cost for Vsphere Standard + production support cost of management software. _Not included- other hypervisor software cost_ or _Antivirus / Monitoring Agents_.|
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| Storage | Storage Hardware || The total storage hardware acquisition cost is calculated by multiplying the Total volume of storage attached to per GB cost. Default is USD 2 per GB per month. |
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| Server Depreciation | (Total server hardware acquisition cost)/(Depreciable life) | Depreciable life = 4 years ||
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| Storage Depreciation | (Total storage hardware acquisition cost)/(Depreciable life) | Depreciable life = 4 years ||
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| Fit out and Networking Equipment | (Total network hardware acquisition cost)/(Depreciable life) | Depreciable life = 5 years ||
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| License Amortization | (License cost for VMware + Windows Server + SQL Server + Linux OS)/(Depreciable life) | Depreciable life = 5 years | VMware licenses won't be retained; Windows + SQL. Licenses will be retained based on AHUB option in Azure). |
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| Server Depreciation | (Total server hardware acquisition cost)/(Depreciable life) | Depreciable life = 4 years ||
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| Storage Depreciation | (Total storage hardware acquisition cost)/(Depreciable life) | Depreciable life = 4 years ||
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| Fit out and Networking Equipment | (Total network hardware acquisition cost)/(Depreciable life) | Depreciable life = 5 years ||
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| License Amortization | (License cost for VMware + Windows Server + SQL Server + Linux OS)/(Depreciable life) | Depreciable life = 5 years | VMware licenses won't be retained; Windows + SQL. Licenses will be retained based on AHUB option in Azure). |
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|**Operating Asset Expense (OPEX) (B)**||||
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| Network maintenance | Per year |||
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| Storage maintenance | Per year | Power draw per Server, Average price per KW per month based on location. ||
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| Term | Details |
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--- | --- |
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|**_Business case_**| A business case provides justification for a go/no go for a project. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution. |
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|**_Total cost of ownership (TCO)_**| TCO (Total cost of ownership) is a financial estimate to help companies calculate precisely, the economic impact during the whole life cycle of IT projects. |
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|**_Return on Investment (ROI)_**| A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs. |
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|**_Cash flow statement_**| It explains how much cash went out and in the door for a business. |
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|**_Net cash flow (NCF)_**| It's the difference between the money coming in and the money coming out of your business for a specific period. |
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|**_Net Present Value (NPV)_**| The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs. |
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|**_Payback period_**| The breakeven point for an investment. It's the point in time at which net benefits (benefits minus costs) equal initial investment or cost. |
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|**_Capital Expense (CAPEX)_**| Up front investments in assets that are capitalized and put into the balance sheet. |
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|**_Operating Expense (OPEX)_**| Running expenses of a business. |
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|**Business case**| A business case provides justification for a go/no go for a project. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution. |
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|**Total cost of ownership (TCO)**| TCO (Total cost of ownership) is a financial estimate to help companies calculate precisely, the economic impact during the whole life cycle of IT projects. |
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|**Return on Investment (ROI)**| A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs. |
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|**Cash flow statement**| It explains how much cash went out and in the door for a business. |
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|**Net cash flow (NCF)**| It's the difference between the money coming in and the money coming out of your business for a specific period. |
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|**Net Present Value (NPV)**| The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs. |
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|**Payback period**| The breakeven point for an investment. It's the point in time at which net benefits (benefits minus costs) equal initial investment or cost. |
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|**Capital Expense (CAPEX)**| Up front investments in assets that are capitalized and put into the balance sheet. |
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|**Operating Expense (OPEX)**| Running expenses of a business. |
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## Next steps
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-[Learn more](./migrate-services-overview.md) about Azure Migrate.
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