How to calculate the TCO for cloud solutions

As mentioned in Chapter 1, calculating the Total Cost of Ownership (TCO) is one of the key processes we need to go through when considering moving to the cloud.

We make estimations in our daily lives, such as when we are going to buy a car or a house. When considering these purchases, we usually first address its purchase price, but we also keep in mind indirect costs, such as electricity in the case of the house or proper insurance in regard to the car. Maintenance costs of small house repairs or expendable parts in the car should also be considered to consider this exercise complete.

Without these costs, our estimation is just not going to reflect reality. The same thing applies to the TCO but from a technological perspective.

In this section, we will go through a complete review of what the TCO is and the factors that weigh into this key cost analysis process.

TCO introduction

TCO was already introduced as a key concept...