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@@ -124,7 +124,7 @@ Cost components for running on-premises servers. For TCO calculations, a one yea
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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. (It's taken as an industry standard as cost per GB per month for NAS is ~$1.67 & SAN is $2.3. As Azure Migrate can't differentiate between SAN & NAS, average of $2 is taken). |
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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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|| Storage Maintenance || Default is 10% of storage hardware acquisition cost. |
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| 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. |
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|| Maintenance | Maintenance | Defaulted to 15% of network hardware and software cost. |
**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. 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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**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. 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. <br\><br\>For web apps, sizing and cost comes from Azure App Service assessment. <br\><br\>For general servers, sizing and cost comes from Azure VM assessment. <br\><br\> 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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## Build a business case
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## Review the business case
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There are four major reports that you need to review:
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-**Overview**: This report is an executive summary of the business case and covers:
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- Potential savings (TCO).
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- Estimated year on year cashflow savings based on the estimated migration completed that year.
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- Savings from unique Azure benefits like Azure Hybrid Benefit.
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- Discovery insights covering the scope of the business case.
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-**On-premises vs Azure**: This report covers the breakdown of the total cost of ownership by cost categories and insights on savings.
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-**Azure IaaS**: This report covers the Azure and on-premises footprint of the servers and workloads recommended for migrating to Azure IaaS.
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-**Azure PaaS**: This report covers the Azure and on-premises footprint of the workloads recommended for migrating to Azure PaaS.
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### View a business case
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1. In **Servers, databases and web apps** > **Azure Migrate: Discovery and assessment**, select the number below **Total migration business cases**.
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1. In **Business Case**, select a business case to open it. As an example (estimations and costs, for example, only):
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### Overview
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#### Potential savings
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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.
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##### Estimated on-premises cost
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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.
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##### Estimated Azure cost
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It covers the cost of all servers and workloads that have been identified as ready for migration/modernization as per the recommendation. Refer the respective *Azure IaaS* and *Azure PaaS* 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.
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#### YoY estimated current vs future state cost
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As you plan to migrate to Azure in phases, this line chart shows your cashflow per year based on the estimated migration completed that year. By default, it's assumed that you'll migrate 0% in the current year, 20% in Year 1, 50% in Year 2, and 100% in Year 3.
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- Current state cost shows how your net cashflow will be on-premises, given your infrastructure is growing 5% per year.
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- The future state cost shows how your net cashflow will be as you migrate some percentage to Azure per year as in the 'Azure cost' assumptions, while your infrastructure is growing 5% per year.
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#### Savings with Azure Hybrid Benefits
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Currently, this card shows a static percentage of max savings you could get with Azure hybrid Benefits. Soon, you'll be able to see actual license cost savings assuming all your licenses are convertible to Azure and the savings are from bringing the existing Windows and SQL Server licenses to Azure.
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#### Discovery insights
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It covers the total severs scoped in the business case computation, virtualization distribution, utilization insights and distribution of servers based on workloads running on them.
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##### Utilization insights
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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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- These servers were on but don't 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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### On-premises vs Azure
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It covers cost components for on-premises and Azure, savings, and insights to understand the savings better.
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### Azure IaaS
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In Azure tab:
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- Cost estimate by recommended target (Annual cost and also includes Compute, Storage, Network, labor components) and savings from Hybrid benefits.
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- Azure VM:
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- Estimated cost by savings options: This card includes compute cost for Azure VMs. It is recommended that all idle servers are migrated via Pay as you go Dev/Test and others (Active and unknown) are migrated using 3 year Reserved Instance to maximize savings.
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- Recommended VM family: This card covers the VM sizes recommended. The ones marked Unknown are the VMs that have some readiness issues and no SKUs could be found for them.
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- Recommended storage type: This card covers the storage cost distribution across different recommended storage types.
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- SQL Server on Azure VM:
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This section assumes instance to SQL Server on Azure VM migration recommendation, and the number of VMs here are the number of instances recommended to be migrated as SQL Server on Azure VM:
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- Estimated cost by savings options: This card includes compute cost for SQL Server on Azure VMs. It is recommended that all idle servers are migrated via Pay as you go Dev/Test and others (Active and unknown) are migrated using 3 year Reserved Instance to maximize savings.
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- Recommended VM family: This card covers the VM sizes recommended. The ones marked Unknown are the VMs that have some readiness issues and no SKUs could be found for them.
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- Recommended storage type: This card covers the storage cost distribution across different recommended storage types.
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In on-premises tab:
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- On-premises footprint of the servers recommended to be migrated to Azure IaaS.
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- Contribution of Zombie servers in the on-premises cost.
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- Distribution of servers by OS, virtualization, and activity state.
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### Azure PaaS
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In Azure tab:
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- Cost estimate by recommended target (Annual cost and also includes Compute, Storage, Network, labor components) and savings from Hybrid benefits.
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- Azure SQL:
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- Estimated cost by savings options: This card includes compute cost for Azure SQL MI.
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- Distribution by recommended service tier.
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- Azure App Service:
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- Estimated cost by savings options: This card includes Azure App Service Plans cost.
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- Distribution by recommended plans.
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In on-premises tab:
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- On-premises footprint of the servers recommended to be migrated to Azure PaaS.
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- Contribution of Zombie SQL instances in the on-premises cost.
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- Distribution of SQL instances by SQL version and activity state.
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## Next steps
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-[Learn more](concepts-business-case-calculation.md) about how business cases are calculated.
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-[Learn more](how-to-view-a-business-case.md) about how to review the business case reports.
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