Business Case Updates

Author: v-sreedevank

articles/migrate/common-questions-business-case.md

@@ -6,7 +6,7 @@ ms.author: rajosh
 ms.manager: ronai
 ms.topic: conceptual
 ms.service: azure-migrate
-ms.date: 04/22/2024
+ms.date: 11/08/2024
 ms.custom: references_regions, engagement-fy23
 ---
 
@@ -61,12 +61,6 @@ To verify in an existing project:
 
     Germany West Central and Sweden Central
 
-### How do I add facilities costs to my business case?
-
-1. Go to your business case and select **Edit assumptions** and choose **On-premises cost assumptions**.
-1. Select **Facilities** tab. 
-1. Specify estimated annual lease/colocation/power costs that you want to include as facilities costs in the calculations.
-
 If you aren't aware of your facilities costs, use the following methodology.
 
 #### Step-by-step guide to calculate facilities costs

articles/migrate/concepts-business-case-calculation.md

@@ -140,17 +140,17 @@ Cost components for running on-premises servers. For TCO calculations, an annual
 |     | Software - Windows Server licensing | License cost | Calculated per two core pack license pricing of Windows Server. |
 |     | Windows Server - Extended Security Update (ESU) | License cost | Calculated for 3 years after the end of support of Windows server license: <br/><br/> ESU (Year 1) – 75% of the license cost <br/><br/> ESU (Year 2) – 100% of the license cost <br/><br/> ESU (Year 3) – 125% of the license cost <br/><br/>|
 |     |     | Software Assurance | Calculated per year as in settings. |
-|     | Virtualization software for servers running in VMware environment | Virtualization Software (VMware license cost + support) | License cost for vSphere Standard license + Production support for vSphere Standard license. *Not included- other hypervisor software cost* or  *Antivirus / Monitoring Agents*.|
+|     | Virtualization software for servers running in VMware environment | Virtualization Software (VMware license cost) | License cost based on VMware Cloud Foundation licensing.|
 | 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. |
 |     | Storage Maintenance |     | Default is 10% of storage hardware acquisition cost. |
 | Network | Network Hardware and software | Network equipment (Cabinets, switches, routers, load balancers etc.) and software | As an industry standard and used by sellers in Business cases, it's a % of compute and storage cost. Default is 10% of storage and compute cost. |
 |     | Maintenance | Maintenance | Defaulted to 15% of network hardware and software cost. |
 | Security | General Servers | Server security cost | Default is USD 250 per year per server. This is multiplied with number of servers (General servers)|
 |     | SQL Servers | SQL protection cost | Default is USD 1000 per year per server. This is multiplied with number of servers running SQL |
-| Facilities | Facilities & Infrastructure | DC Facilities - Lease and Power | Facilities cost isn't applicable for Azure cost. |
+| Facilities | Facilities & Infrastructure | DC Facilities - Lease and Power | The facilities cost is based on a colocation model, which includes space, power, and lease costs per kWh.<br> Annual facilities cost = Total energy capacity * Average colocation costs ($340 per kWh per month) * 12. Assume 40% of datacenter energy capacity remains unused.<br> Total energy capacity = Energy consumption by current workloads / (1 - unused energy capacity). <br>To determine energy consumption for your workloads: <br>
+<br> - Compute resources: Total physical cores * On-Prem TDP (0.009 kWh per core) * Load factor (2.00) * On-Prem PUE (1.80).<br> - Storage resources: Total storage in TB * On-Prem storage power rating (10 kWh per TB) * Conversion factor (0.0001) * Load factor (2.00) * On-Prem PUE (1.80). |
 | Labor | Labor | IT admin | DC admin cost = ((Number of virtual machines) / (Avg. # of virtual machines that can be managed by a full-time administrator)) * 730 * 12 |
 | Management | Management Software licensing | System center Management software | Used for cost of the System center management software that includes monitoring, hardware and virtual machine provisioning, automation, backup and configuration management capabilities. Cost of Microsoft system center management software is added when the system center agents are identified on any of the discovered resources. This is applicable only for windows servers and SQL servers related scenarios and includes Software assurance. |
-|     |    | VMware Vcenter Management software | This is the cost associated with VMware management software i.e. Management software cost for vSphere Standard + production support cost of management software. Not included- other hypervisor software cost or Antivirus/Monitoring Agents. |
 |     |    | Other Management software | This is the cost of the management software for Partner management products. |
 |     | Management cost other than software | Monitoring cost | Specify costs other than monitoring software. Default is USD 430 per year per server. This is multiplied with the number of servers. The default used is the cost associated with a monitoring administrator. |
 |     |    | Patch Management cost | Specify costs other than patch management software. Default is USD 430 per year per server. This is multiplied with the number of servers. Default is the cost associated with a patch management administrator. |