Azure ROI Calculator

2023-02-01T13:58:51.56+00:00

I need to calculate ROI for moving my resources to Windows Azure.

I have used the Azure TCO calculator to derive the cost of 3,4,5 years for On Premise vs Azure Cost. I also have the savings derived for the 3,4,5 years.

How do i calculate ROI ??

The duration /time frame it would take for the ROI to materialize.

Azure Virtual Machines
Azure Virtual Machines
An Azure service that is used to provision Windows and Linux virtual machines.
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  1. kobulloc-MSFT 22,556 Reputation points Microsoft Employee
    2023-02-01T21:34:54.4866667+00:00

    Hello, @Mohammed Irfan Gulam Rasool Shaikh !

    How do I calculate my ROI using the Azure Total Cost of Ownership (TCO) Calculator?

    As a disclaimer, we focus on technical questions on Q&A so reaching out to Azure Sales may better provide information about calculating ROI. Still, I'll do my best to help you as I believe we can address this question using online tools.

    The Azure Total Cost of Ownership (TCO) Calculator is a tool that estimates total on-premises and Azure costs complete with a breakdown of potential costs including hardware, software, electricity, data, networking, IT labor, and more. After we've defined our workload and adjusted assumptions, we're presented with a report.

    We can calculate the return on investment (ROI) with the following equation:

    ( Total on-premises cost over 5 year(s) - Total Azure cost over 5 year(s) ) / Total Azure cost over 5 year(s)

    Looking at a quick example, the total on-premises cost over 5 year(s) would be $98,353 and the total Azure cost over 5 year(s) would be $13,353. That means that the ROI would be ( $98,353 - $13,353) / $13,353 or 637%. That is to say that for each dollar you spent on Azure in this scenario would save $6.37 compared to your on-premises cost assuming the $98,353 on-premises cost and $13,353 Azure cost used in the example.

    I hope this helps! Please let me know in the comments if you need additional clarification.

    Example used: $98,353 cost on-premises over 5 years vs $13,353 Azure cost over 5 years:

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    1 person found this answer helpful.