Cost Calculators

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Time
22 hours 25 minutes
Difficulty
Intermediate
CEU/CPE
24
Video Transcription
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>> Hey, everybody. Welcome back.
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In this lecture, we're going to be
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talking about costs calculators.
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The learning objectives for
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this lesson are going to be to
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review the different cost calculators
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that are available to you,
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then we're going to go hop in to
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the console and explore
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how the cost calculators actually work.
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Azure has two different cost calculators.
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They have their TCO, which is
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their total cost of ownership calculator,
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and then they have a pricing calculator.
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The TCO is pretty straightforward.
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It compares the cost between
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the plan azure infrastructure
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and the on-premise data-center.
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This is going to be helpful
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if you're trying to figure out whether
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it's going to be cheaper for you to move to
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the Cloud or if it's
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better for you to just stay on-premise.
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Yes, I did say the Cloud
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is not always going to be cheaper,
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but one thing to always keep in mind is
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that even though the cloud may not be cheaper,
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the Cloud is much easier for you to stay
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flexible within the change.
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When you do things on-premise,
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when you are developing
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an infrastructure that's on-premise,
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what you buy is what's going to stay and sometimes
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it's hard to predict for
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future usage and through for future costs.
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With the Cloud you can just spin
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up and burn down as you need to.
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It's very flexible and that case, it is nice.
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You're not really locked into long-term contracts.
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For the other calculator, the pricing calculator.
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This is going to be used to gain an estimate
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on Customer Resource Service themes.
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Try and figure out exactly what you
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are going to be needing and pricing that outs.
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What I mean by that is like how much CPU,
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how much RAM, how much storage,
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how much network bandwidth,
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what have you depending on the
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>> scenario that's at stake?
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>> This is going to be based of like
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analyze different types of
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resources that you plan and deploy.
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You're going to have several different options,
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usually depending on what
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you're going to be deploying in the Cloud.
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It's going to be based on location,
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the Tier service, and the SLA and so forth.
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Remember when we were talking
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about the global infrastructure,
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there's a lot of different services that may or may
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not be available within
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the varying regions across the world.
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Sometimes the price does play a factor into that.
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The pricing calculator will help you
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determine whether it's cheaper to host
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your services in one region
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or in another and I think it's also based of maturity.
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They don't explicitly say that,
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but I think it is a factor for sure.
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A couple of things you're going to want to keep in mind
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when dealing with cost management and billing,
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is that you're going to get the accounts right out
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the gate when you start your Azure account.
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When you first onboard onto Azure,
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you go through the whole
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creation processes of your first account,
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you're going to get that
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cost management accounts already set up.
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Now, depending on what type of account each setup with,
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if you're going for an individual account,
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maybe if you've got a small team or if it's just
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yourself and you're just creating
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your own Azure environment,
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you will get an individual billing account
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which is created upon
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consumption of once you
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start your account and you get logged into the portal.
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If you're a larger enterprise,
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chances are you're going to want to set
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up an enterprise agreement.
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This is created for larger companies and
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organizations that have maybe
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already an existing partnership with Microsoft.
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Typically when you do this,
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you do get a lot of
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discounts for compute hours per month.
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Just basically the rate
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that you would typically be paying because
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everything you do in the Cloud is basically
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pay for what you use pay-as-you-go model.
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The rates at which you get charged
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>> this a little bit less
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>> because you're setting up
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a deal with Microsoft that says,
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I'm going to be using approximately x amount of hours
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and can you help me out here and then they'll
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reduce the price per service hour.
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It helps you out a little bit like that when
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you can set up an enterprise agreement.
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You do have three different options here you
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have the Microsoft Online Service Program,
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which are for those individual accounts,
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you have Enterprise Agreements for
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larger organizations who have
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enterprise agreements already set up with Microsoft,
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and then you have a Microsoft Customer
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>> Agreement option.
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>> Which one you choose it's up to
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you and your particular situation of your organization.
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I do recommend you reach out to
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Microsoft for more specific details on that.
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There are probably some more helpful
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information and documentation,
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but like I said, a lot of these details
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to change frequently.
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You may want to reach out and get
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more updated specifics on
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the different billing agreements
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that are available to you.
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In addition to all of this,
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regardless of what you choose for
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>> your billing accounts,
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>> you are offered features for cost analysis,
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cost alerts, budgets, and cost advisors.
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These are various tools and offerings that
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are given to you with
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the management and monitoring
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solutions that are provided in Azure.
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We're going to be covering this in
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more detail when we get down
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to the monitoring portion of this course,
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but for now, just keep in mind,
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you do have some services
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available to you for cost analysis,
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alerting, budgeting and costs advisory.
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Now, we're going to go hop over
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into the console and we're going to take a look at
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the various calculators that are available to you.
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Here we are on the Microsoft Azure homepage.
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I'm going to go ahead and open the pricing tab.
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I'm not even logged in and I can already
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see the pricing calculator is available for me here,
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but let's go ahead and drop down the Azure Pricing.
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This gives you that detail
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on how much things you're going cost per service.
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You get to learn a little bit more
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about credits that are provided to you,
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and the different pricing models
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you have for the services,
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but if we hop back up here and we want
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to open up our Azure Pricing Calculator.
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This is one of the calculators we spoke about earlier.
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You're going to see that we have the option to go ahead
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and begin selecting services that we're interested in.
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Let's say I want to spin up a virtual machine.
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I'm going to go ahead and do that and here
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we're already in a dynamic estimator
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>> or calculators here.
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>> It does give us an idea like this is probably
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a standard Virtual Machine
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that we would want to split up.
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This has two virtual CPUs with eight gigs of RAM,
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approximately 729 hours worth of
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compute time with a Windows box.
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Here's some specifics on base set of East US,
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but you do have some different options
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depending on where you're located that you can select.
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Remember, your price
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does vary depending on where you're located.
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You can tell right here,
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the only detail I've changed is the region,
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and we noticed that the price does jump in-between.
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It is a little bit cheaper to spin up
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this specific Windows box and East US,
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then it would be in West US.
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That being said, I'm going to keep it in East US,
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and I had the opportunity to change
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>> to Linux or Windows.
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>> Clearly, Linux is cheaper,
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probably due to licensing costs.
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We have that feature there.
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We can change our tier if we like.
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The tier does reduce the cost.
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If I go to basic and low priority,
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you can see it incrementally increase as we go.
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It does change the price per hour,
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which is what's reflecting the ultimate cost here.
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The instances is what's interesting here.
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You do have a lot of options.
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We're going to go into detail on this later on in
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the course when we start talking about compute,
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but depending on what instance we choose
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and what type of resources are in that instance,
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the pricing does vary.
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For example, if I want
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this beefy server was 16 virtual cores,
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64 gigs of RAM, and 128 gigs.
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The temporary storage, I'm looking at
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approximately $532 a month
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for this Windows box based set of East US.
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If I shrink down to maybe a smaller machine here,
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it does reduce the price.
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You do have some different options for licensing.
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You can go for reserve instances if you'd like.
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If I do that, it's not changing it here but if I did,
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if I were able to do that,
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it would reduce the price ultimately,
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but you'd be paying more upfront.
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Another thing that you can keep in
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mind, especially with Windows,
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is that you do have some options for licensing.
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You can bring your license to the table if you need,
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or you can pay for the license within this machine.
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Now scrolling backup, let's go ahead and take
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a look at the other calculator.
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We do have total cost of
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ownership which our TCO calculator.
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Within here, we can try to define
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>> our workload based on,
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>> this is going to be the comparison between,
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what it might costs us to do
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this deployment of instances on-premise and the cloud,
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and so we can approximate,
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let's give a title tests workload.
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Here we go. We can approximate what type of servers,
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how many servers, the size of the servers, and whatnot.
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We can say virtual machines,
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we can say Linux.
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How many virtual machines, let's say two.
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We wanted to VMware.
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How many cores, let's say eight cores,
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RAM, we can say 64 gigs of RAM and optimize by CPU.
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This does give us some feature sets
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here where we can compare
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the details of our environment and
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the Cloud versus our environment on-premise.
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We can come up with specifics on
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data-basing and storage if we want.
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Let's go ahead. It looks like we're
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going to have to go ahead and
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fill in that information, but that's okay.
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The idea here is to show that you can
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fill this out and it'll run
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a comparison on what it
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might cost you on-premise versus what it
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might costs you to spin up these instances in a cloud.
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Everybody, in this lecture we
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covered two different calculators
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that are available to you
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that you should use when trying to
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do a lift-and-shift migration to the Cloud,
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or if you're trying to stand up
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a new project and a cloud and you're trying to
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account for the service costs that's going to
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be accrued on you when you spin up your services.
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You have your total cost of ownership calculator,
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which is going to help you compare the costs
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between your Azure environment
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and how much would it cost for you to spin
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up the hardware and software on-premise?
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This is going to count for all things
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hardware, software power.
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If you have all those details,
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that's super helpful because you can
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get a more accurate estimate.
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Then we're going to have our pricing calculator,
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which is going to give us an estimate based
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of like the specifics
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of the compute resources, the storage resources.
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Honestly, all services
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that you're going to be deploying,
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that they have every single service there,
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so you can get an estimate
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of what that's going to cost you.
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It does help you because you can specify
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based on region how much it's going to cost you can
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do like a cost-benefit analysis,
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and comparison between various regions
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and get a really detailed estimate to present to
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leadership or any type of management that you need to
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present to in order to get buy-in and
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approval for your deployment.
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I hope this lecture was helpful.
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If you have any questions, feel free
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to reach out and if not,
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I'll see you guys in the next lecture.
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