Cloud cost simulation

  • Release version: Xanadu
  • Updated August 1, 2024
  • 2 minutes to read
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    Summary of Cloud cost simulation

    The Cloud Cost Simulation feature enables you to estimate the expenses involved in migrating your on-premise virtual machines to cloud environments such as AWS or Azure before performing the actual migration. It uses criteria specified by thesammanagerrole or automated recommendations from the Software Asset Management application to identify suitable virtual machines for migration based on factors like software and hardware end-of-life and resource utilization.

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    The simulation matches on-premise virtual machines to optimal cloud-based equivalents, providing cost estimates that include options with or without Bring Your Own License (BYOL) fees. After reviewing the cost simulation, you can proceed to create a change request to initiate the migration.

    Key Features

    • Migration Criteria Specification: The sammanager role allows you to define specific criteria (e.g., virtual machines running SQL Server or with end-of-life software) to select resources for cloud migration simulation.
    • Automated Recommendations: Software Asset Management automatically suggests resources for migration based on end-of-life software/hardware status and resource utilization.
    • Cloud Provider Cost Comparison: Provides cost estimates for AWS and Azure, including detailed pricing with or without BYOL.
    • Optimal Resource Matching: Matches on-premise virtual machines to cloud counterparts to achieve cost efficiency.
    • Integration with Change Management: Allows creating change requests to move forward with the migration process after cost simulation.

    Use Cases

    • End-of-life Software: Simulate migration costs for virtual machines with software nearing end of life, taking advantage of cloud benefits such as Azure’s free extended security updates for certain Microsoft products.
    • End-of-life Hardware: Evaluate the cost implications of migrating virtual machines running on hardware approaching end of life. Requires activation of the Hardware Asset Management plugin for accurate data.
    • Resource Utilization Optimization: Identify underutilized on-premise virtual machines (e.g., a 32 vCPU machine using only 4 vCPU) and simulate migration to appropriately sized cloud virtual machines, enabling cost savings. Requires activation of the Cloud Migration Assessment plugin for utilization data.

    Required Plugins

    • Cloud Insights application plugin (snclinbilling) for cloud infrastructure details and cost data.
    • Hardware Asset Management (snhamp) for hardware lifecycle information.
    • Cloud Migration Assessment application (com.sncloudmigration) for resource utilization data.

    Simulate the cost of moving your on-premise resources to the cloud environment before performing the migration.

    Plugins required

    The following plugins are required for supporting cloud cost stimulator recommendations:
    • Cloud Insights application plugin (sn_clin_billing): for cloud infrastructure details and cost.
    • Hardware Asset Management (sn_hamp): for end of life cycle for hardware.
    • Cloud Migration Assessment application (com.sn_cloud_migration): for resource utilization.

    Overview

    The sam_manager role specifies the criteria for migrating the resources to the cloud. For example, you may need all virtual machines installed with SQL Server or all virtual machines having end of life software. In addition the Software Asset Management application automatically provides recommendations based on End of Life software and hardware and resource utilization.

    Based on the criteria or recommendation, the Software Asset Management application automatically selects the virtual machines that match your criteria. Once all the on-premise virtual machine have been identified, the Software Asset Management application matches those virtual machines with the virtual machines on the cloud: AWS or Azure.

    The most optimal matching of resources is conducted and the total cost involved is given to you. Cost for the various cloud providers: AWS and Azure is mentioned along with or without the cost of Bring Your Own License (BYOL). Once the decision is made to move to a particular cloud provider, a change request can be created to move forward with the implementation.

    For information on comparing and evaluating the estimate cost of migrating your resources to the cloud, see Cloud simulator dashboard.

    Cloud cost simulation.

    Use cases

    A sam_manager role can receive recommendations for migrating on-premise resources to the cloud while taking into account the following considerations:
    • End of life for software: On some virtual machines, you may have software that is nearing the end of its life cycle. Calculate the cost of migrating these virtual machines to the cloud, taking into account all of the benefits. For example, Microsoft Azure offers free extended security updates for certain Microsoft products that have reached the end of their life cycle.​
      Note:
      Recommendations are only shown for Microsoft Azure and AWS shared VMware virtual machines and not for dedicated host machines.
    • End of life for hardware: You may have virtual machines running on hardware that is nearing its end of life phase. Simulate the cost of moving these virtual machines to the cloud.
      Note:
      Ensure that you have activated of the Hardware Asset Management (sn_hamp) plugin to get data on end of life cycle for hardware and hardware cost.
    • Resource utilization: Some on-premise virtual machines may have low CPU and RAM utilization. Simulate the cost of moving these virtual machines to the cloud by recommending the appropriate sized virtual machines. For example, if a 32 vCPU virtual machine on-premises, is utilizing only 4 vCPU, the recommendation would be a 4-vCPU virtual machine on the cloud, resulting in cost savings.​
      Note:
      Ensure that you have activated the Cloud Migration Assessment application (com.sn_cloud_migration) plugin to get data on resource utilization.