Facilities update

Author: v-sreedevank

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

@@ -184,7 +184,7 @@ Cost components for running on-premises servers. For TCO calculations, an annual
 | Storage  | Storage Hardware |      | Estimated as a sum of total storage hardware acquisition cost + software maintenance cost. <br> Total storage hardware acquisition cost = Total volume of storage attached to VMs (across all machines) * Cost per GB per month * 12. Cost per GB can be customized in the assumptions similar to the current On-premises storage cost. |
 | Network | Network Hardware and software   | Network equipment (Cabinets, switches, routers, load balancers etc.) and software  | Estimated as a sum of total network hardware and software cost + network maintenance cost  Total network hardware and software cost is defaulted to 10%* (compute and licensing +storage cost) and can be customized in the assumptions. Network maintenance cost is defaulted to 15%*(Total network hardware and software cost) and can be customized in the assumptions Same as current On-premises networking cost. |
 | Security | General Servers  | Server security cost | Estimated as sum of total protection cost for general servers and SQL workloads using MDC via Azure Arc. MDC Servers plan 2 is assumed for servers. Microsoft Defender for SQL on Azure-connected databases is assumed for SQL Server |
-| Facilities | Facilities & Infrastructure | DC Facilities - Lease and Power | Based on user input. Same as current On-premises facilities 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 * 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>**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 | Same as current On-premises labor cost.|
 | Management | Management Software licensing | System center or other management software | Estimated as sum of total management cost for general servers. This includes monitoring and patching. Patching is assumed to be free via Azure Update Manager as it is included in MDC Servers plan 2. Monitoring cost is calculated per day based on log storage and alerts and multiplied*365 Estimated as 70% of on-premises management labor cost by default as it is assumed that 30% of labor effects could be redirected to other high impact projects for the company due to productivity improvements.  Labor costs can be customized in Azure Arc setting under Azure cost assumptions.|
 

articles/migrate/how-to-view-a-business-case.md

@@ -48,7 +48,7 @@ There are four major reports that you need to review:
 This card covers your potential total cost of ownership savings based on the chosen migration strategy. It includes one year savings from compute, storage, network, labor, and facilities cost (based on assumptions) to help you envision how Azure benefits can turn into cost savings. You can see the insights of different cost categories in the **On-premises vs Azure** report.
 
 ### Estimated on-premises cost
-It covers the cost of running all the servers scoped in the business case using some of the industry benchmarks. It doesn't cover Facilities (lease/colocation/power) cost by default, but you can edit it in the on-premises cost assumptions section. It includes one time cost for some of the capital expenditures like hardware acquisition etc., and annual cost for other components that you might pay as operating expenses like maintenance etc.
+It covers the cost of running all the servers scoped in the business case using some of the industry benchmarks. It includes one time cost for some of the capital expenditures like hardware acquisition etc., and annual cost for other components that you might pay as operating expenses like maintenance etc.
 
 ### Estimated Azure cost
 It covers the cost of all servers and workloads that have been identified as ready for migration/modernization as per the recommendation. Refer to the respective [Azure IaaS](how-to-view-a-business-case.md#azure-iaas-report) and [Azure PaaS](how-to-view-a-business-case.md#azure-paas-report) report for details. The Azure cost is calculated based on the right sized Azure configuration, ideal migration target, and most suitable pricing offers for your workloads. You can override the migration strategy, target location, or other settings in the 'Azure cost' assumptions to see how your savings could change by migrating to Azure.