Cloud Pricing Guide

Cloud pricing, a checklist approach

This checklist below can be used to help include all cloud infrastructure related cost line items in a cloud cost estimate.

Service groupService items% of cost in a typical enterprise environment
ComputeInstances, containers, batch, CI/CD, web-servers, COTS servers, marketplace instances, etc. Typically 30% to 60% of total spend is typically consumed on compute. Compute-adjacent services such as block storage, snapshots, and compute-related data transfer typically costs half of what compute itself costs.
DatabasesPrimary, replicas, and mirrors, storage and backup, read/writes (especially for NoSQL DBs)Highly variable depending on DB fleet size and configuration. Typically 10% to 30% of total spend.
StorageBlock Storage, object storage, file storage, archive, and get/put operationsHighly variable depending on storage provisioning and data retention practices. Typically 10% to 30% of total spend.
NetworkVPC, NAT gateway, data transfer, DNS, load balancers, API gateway, data center connection services, etc. Typically 5% to 15% of total spend
Logging, systems, and securityCloud monitoring/alerting, systems manager, firewall, etc. Typically 2% to 5% of total spend
Support-Typically 2% to 7% of total spend
Discounts / Credits-Varies depending on if any EDP or EA is in place.
Contingency-Varies based on risk appetite.

Additional questions that may help refine the estimate include:

  1. What assumptions were used to estimate total non-production costs?
    Although cost modellers often assume non-production costs around 30% of production, in reality it often costs 50% to 80% of production.
  2. Is the environment changing to one that is architected for high availability (HA)?
    Some on-premises environment are not set up to be HA. Once cloud best practices are adopted and HA is applied, costs for HA environments can increase by up to 100%.
  3. What assumptions were used to estimate production compute and database costs?
    Using reservations and savings plans, the typical total discount will be 20% to 25% rather than the frequently assumed 50% to 70%.
    Further detail can be found in this blog.

Goldiserv logo