If deploying Dell APEX for Azure solution with on-prem compute and storage, what Azure costs am I to consider if workloads are to run locally for now?to have running even if I have no wor

Question

I am investigating Dell APEX for Azure solution and wanted to know the costs associated with workload running on the on-prem Dell infrastructure vs Azure cloud. Also are there any base Azure services that I would need to have running even if I have no workload in the cloud. What is currently clear is that an Azure subscription would be needed.

Answer 1

@Lewis, Asfa When investigating the Dell APEX for Azure solution and comparing the costs of running workloads on on-prem Dell infrastructure versus Azure cloud, there are several factors to consider. Let’s break it down:

1. Costs of Running Workloads on Dell On-Prem Infrastructure vs. Azure Cloud

On-Prem Dell Infrastructure (Dell APEX for Azure)

Dell APEX for Azure allows you to extend Azure services into your on-premises data center. With this model, you can have a hybrid cloud environment where workloads can be run either on-prem or in the cloud.

Hardware Costs:

• Dell APEX provides hardware as a service, meaning you'll pay for the infrastructure usage rather than buying hardware outright. This can include servers, storage, networking equipment, and more.
  • Pricing typically depends on the capacity and resources you need, including CPU cores, storage size, and memory, but the cost is subscription-based.
  Operational Costs:

    - You will still need to consider the costs of power, cooling, facility maintenance, IT staff, and other operational costs.
    
    
       - The cost will vary based on your on-prem setup but can be more predictable than the cloud (e.g., flat-rate payments for infrastructure) but may be higher depending on the resource scale.
    
       
       **Software Licenses**:
    
       
          - If you’re running Microsoft or third-party software on the Dell infrastructure, you would need the associated licenses. Dell APEX also enables integration with Azure Stack and hybrid management, which can introduce additional costs based on the service tiers.
    ```**Azure Cloud**
  
  

When running workloads directly in Azure, costs are based on a pay-as-you-go model for the services you consume.

Compute Costs:

• Costs for VMs, Azure Kubernetes Service (AKS), or other compute services are based on the number of cores, memory, and the duration the resources are running.
  • Different VM types (e.g., general purpose, compute-optimized, memory-optimized) come with varying costs.
  Storage Costs:
  • Azure offers various types of storage, including blob storage, disk storage, and file shares. Costs depend on the type of storage (Standard or Premium) and how much data is stored and accessed. Data Transfer Costs:

      - For data moving in and out of Azure (e.g., between Azure regions or from Azure to on-prem), there may be bandwidth charges. Internal Azure-to-Azure data transfers within the same region are generally free.
    
      
      **Other Services**:
    
      
         - Services like Azure Active Directory, monitoring (Azure Monitor), security (Azure Security Center), and backups have additional charges.
    ```**Comparing Costs:**
  
  

In general, on-prem infrastructure (Dell APEX for Azure) offers more predictable costs with an upfront commitment and subscription model, but it may not scale as efficiently as Azure when it comes to sudden growth in demand. Azure, on the other hand, provides more flexibility and scalability with pay-as-you-go pricing, but costs can vary significantly depending on usage patterns (e.g., storage, bandwidth, and compute resources).

2. Base Azure Services That Might Be Needed (Even If You Have No Workload in the Cloud)

Even if you're not actively running workloads in Azure, there are several base services that you might need, either to manage your hybrid cloud environment or for specific needs like authentication, monitoring, and security:

• Azure Active Directory (Azure AD):
  • Essential for identity and access management (IAM). Even if no workloads are running in Azure, you may still use Azure AD for managing users and devices, especially if you're leveraging hybrid environments like Dell APEX integrated with Azure.
• Azure Subscription:
  • Every Azure service requires a subscription to manage billing and access control. You'll need an active subscription even if you're not running workloads in the cloud, particularly if you are using Azure AD, monitoring, or management services.
• Azure Resource Manager (ARM):
  • While not a service per se, ARM is needed to organize and manage resources across both on-prem and cloud environments. It’s often used when managing a hybrid environment like Dell APEX for Azure.
• Azure Monitor & Log Analytics:
  • These services provide visibility into infrastructure performance and help track logs, metrics, and events. Even if you're not using Azure for workloads, these services can be essential to monitor the hybrid infrastructure and track resources in your Dell APEX setup.
• Azure Security Center:
  • For managing security and compliance across your hybrid environment. It helps you secure both on-prem and cloud resources, even if no workloads are directly running in the cloud.
• Azure Cost Management and Billing:
  • Useful for tracking cloud expenses and managing your hybrid cloud cost structure. This service helps optimize costs for both on-prem and cloud-based resources.
• Azure Backup:
  • If you plan to use Azure for backup purposes (e.g., backing up your on-prem workloads or systems), this service might be relevant even if no workloads are actively running in the cloud.
• Azure Networking Services (e.g., Virtual Network):
  • If you plan on having a hybrid cloud environment with secure network connectivity between your on-prem infrastructure and Azure (for example, through ExpressRoute or VPN Gateway), Azure networking services will be essential.

Hope this helps. Please let us know if you have any further questions.

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