TCO Settings

Azure Costing Settings let you configure the region pricing, reserved-instance discounts and cost assumptions that drive your future-state calculations. Default pricing rarely matches a customer's real agreements, so tuning these settings is what makes every TCO figure trustworthy.

These settings apply to all TCO views and reports. Review them whenever your pricing, discounts or licensing change; stale assumptions quietly skew every cost projection.

The Azure Costing Settings screen with currency and region selectors and the Production and Non-Production Servers columns.
Azure Costing Settings: currency, region and per-environment cost optimisation and backup options.

Getting started

TCO Settings has a left sub-nav with two areas: Azure Costing and On-Premises Benchmark. At the top of the screen, two actions apply across both:

  • Save: store your changes.
  • Sync Enterprise Pricing: pull negotiated Enterprise Agreement rates directly, so the model uses your contracted prices.

Set the Currency and Azure Location selectors first; these establish the pricing context for everything below.

Azure Costing

Azure Costing settings are split into two columns (Production Servers and Non-Production Servers) so you can apply different assumptions to each, for example reserved instances in production and Dev/Test pricing in non-production. Each column holds two groups of settings. To see how servers are assigned to Production or Non-Production by default, see Default Environment Classification.

Cost Optimization

Not all settings appear in both columns. Azure Hybrid Benefit and Use Workload Optimized SKUs are Production-only; Dev/Test Pricing is Non-Production-only.

Setting What it does Applies to
Payment Type The purchasing model applied to VMs, for example 3 Year Reserved Instance, 1 Year Reserved Instance or Pay-as-you-go. Both
Azure Hybrid Benefit (toggle) Apply Hybrid Benefit pricing to reuse existing Windows Server and SQL Server licences. Production only
Use Workload Optimized SKUs (toggle) Select Intel workload-optimised SKUs where they offer better value. Production only
Dev/Test Pricing (toggle) Apply discounted Dev/Test rates. Non-Production only
VM Uptime (slider) Hours per month a VM runs, so part-time environments cost less than always-on production. Both

Backup and Recovery

Setting What it does
Azure Backup (toggle) Include Azure Backup costs for this environment.
Backup Retention Policy How long backups are retained, which affects backup storage cost.
Redundancy The storage redundancy tier, for example LRS, applied to backups.
Azure Site Recovery (toggle) Include Site Recovery (disaster recovery) costs for this environment.

Set production and non-production independently. A common pattern is 3-year reserved instances and full backup in production, with Dev/Test pricing and reduced VM uptime in non-production.

Security and Monitoring

These two toggles apply independently to each column (Production and Non-Production).

Setting What it does
Microsoft Defender for Cloud (toggle) Include Microsoft Defender for Cloud costs for this environment.
Azure Monitor & Log Analytics (toggle) Include Azure Monitor and Log Analytics costs for this environment.

Networking

The Networking setting is shared across both Production and Non-Production environments.

Setting What it does
Network Scale Select the tier that best reflects your environment size. This estimate includes typical ExpressRoute, data transfer, and network services costs. Example tier: Basic: VPN, Private Links (<1,000 VMs).

Treatment Savings Assumptions

Cloud hosting costs depend on the target architecture. When not fully defined, Dr Migrate estimates costs by calculating a baseline Azure IaaS cost, then applying default savings for the selected treatment. These sliders apply across both columns; adjust them to reflect expected savings for each modernisation path.

Setting What it does
Refactor (slider, 0–100%) Estimated cost saving relative to IaaS lift-and-shift for workloads tagged as Refactor. Example default: 22%.
Re-Architect (slider, 0–100%) Estimated cost saving for workloads tagged as Re-Architect. Example default: 25%.
Replace (slider, 0–100%) Estimated cost saving for workloads tagged as Replace. Example default: 30%.

Hybrid Benefits (optional)

Beyond the Azure Hybrid Benefit toggle, Dr Migrate's TCO engine can recommend how many Software Assured licences you need to maximise Hybrid Benefit savings. Enter your licensed core counts here and Dr Migrate uses them in the Hybrid Benefits section of the report to refine recommendations and keep costs to a minimum. Leave them blank to skip; the section is optional.

Field What to enter
Windows Server licenses Number of Software Assured licensed cores for Windows Server.
SQL Server licenses Number of SQL Server Software Assured licensed cores.
RDS licenses Number of Remote Desktop Services (RDS) licenses.

AVS Settings (optional)

If any workloads are tagged for Azure VMware Solution (AVS) hosting, these settings are applied to all of them when costing. Dr Migrate ships sensible defaults (shown below) that you can tailor to the customer's preferences.

Setting Options & effect
Sizing Criteria As-is Sized (applies no right-sizing percentages) or Right-Sized.
Node Type Preference Best Fit (Dr Migrate evaluates the best AVS SKU for the scanned environment), or pin a specific SKU: AV36, AV36P, AV52 or AV64. Some SKUs are only available in selected regions.
Comfort Factor When right-sizing, how much headroom to leave for performance and growth. Example: 1.1.
CPU Oversubscription The ratio of vCPUs to physical cores to apply when sizing AVS nodes. Example: 6:1.
Reserved Instances PAYG (no reserved instances), 1 Year Reserved Instance, or 3 Year Reserved Instance for maximum savings.
Storage Utilization (slider) The percentage of raw vSAN capacity considered usable after overhead. Example: 50%.
Dedupe and Compression Factor (slider) The storage efficiency multiplier applied to vSAN capacity calculations. Example: 1.5.
FTT Settings / RAID Level The Failures-to-Tolerate and RAID combination. Together with the on-premises vSphere disk requirement, this determines the total vSAN storage required in AVS. Default is FTT 1, RAID-5.
Memory Overcommit Factor (slider) The ratio by which memory can be overcommitted when sizing AVS nodes. Example: 1 (no overcommit).

Two further options account for existing customer investments when costing AVS:

  • Customer will BYO VMware VCF license: if the customer has existing VCF licences, AVS costing uses those instead of pricing in new VCF licences.
  • Already running at least one AVS cluster in the same Azure target region: ensures the costing accounts for existing AVS infrastructure rather than standing up a new cluster.

AVS settings only affect workloads tagged for AVS-based hosting. Set the migration target to AVS in planning, then tune these settings so the AVS scenario in TCO Analysis reflects the right node type, reservations and storage policy.

On-Premises Benchmark

The On-Premises Benchmark sub-nav lets you tune the baseline current-cost assumptions Dr Migrate uses to estimate today's spend. Twelve cost categories cover hardware, virtualisation, storage, backup, licensing, disaster recovery, data centre, electricity, networking, and monitoring. Each uses industry benchmark defaults scaled to your scanned environment; you can override individual line items or an entire category so the current-cost baseline reflects the customer's real data centre costs.

Enterprise Agreement customers can pull negotiated Azure rates with Sync Enterprise Pricing; see Sync Enterprise Agreement Pricing.

Panel controls

Four controls sit at the top of the On-Premises Benchmark screen and apply across all categories.

Control What it does
Annual On-Premises Cost Running total of the current-cost estimate (for example, €2.6M). A sub-label shows how many of the 12 categories are active and contributing to the total (for example, "Calculated from 10 of 12 active categories").
TCO last refreshed Timestamp of the last full recalculation. If settings have changed since the last refresh, a warning banner prompts you to refresh TCO to reflect the latest updates.
Total Cost Override (toggle) When on, replaces all 12 calculated category totals with a single manually entered annual figure. Use only when the customer has a known total on-premises cost to enter directly; all individual category line-item estimates are bypassed while this is active.
Reset All Restores every line item across all 12 categories to its benchmark default in one action.

Cost categories and line items

The panel shows a card for each of the 12 cost categories. Each card displays the category's calculated annual cost, its share of total on-premises spend, and a Default or Custom tag. Custom means at least one line item in that category has been changed from its benchmark value.

SQL License Cost and Disaster Recovery Cost may show as "Not Costed" (€0.00) on the card in environments where no SQL servers or no DR configuration were detected during scanning. Their line items still hold populated benchmark defaults in the editor drawer and can be activated manually if the customer uses SQL or DR on-premises.

Click any category card's pencil icon to open its line-item editor. The drawer lists every individual cost item for that category in a table. At the bottom of each drawer:

  • Override cost breakdown with total cost method (toggle): when on, a Total Category Cost (€) field appears and Dr Migrate uses that single figure as the category total, bypassing all individual line-item estimates. A warning is shown while this mode is active.
  • Reset to Default Values: restores every line item in that category to its benchmark default.

The line items for each category are listed below. Each item ships with an industry benchmark default; you can accept it as-is or enter the customer's actual figure. The Type column shows how the value is used: Cost (€) is a monetary figure, Percent (%) is a ratio applied to another figure, and General IT Info is a multiplier or count used in the calculation formula.

Hardware Cost

Line item Type
Server infrastructure renewal period, in years General IT Info
Hardware maintenance cost as a percentage of hardware procurement cost Percent (%)

Virtualization Cost

Line item Type
Average vCPUs hosted per physical core General IT Info
Average VMs per hypervisor. Used only when hypervisor count is not visible to Dr Migrate (for example, Azure Migrate agent-based or Movere deployments) General IT Info
VMware VCF virtualisation software licence cost per physical core Cost (€)
Infrastructure cost to load balance, backup and patch VMs, per VM per month Cost (€)

Storage Cost

Line item Type
Storage infrastructure renewal period, in years General IT Info
Tier 1 SAN storage cost per GB, inclusive of hardware and maintenance Cost (€)
Tier 2 SAN storage cost per GB Cost (€)
Tier 3 SAN storage cost per GB Cost (€)

Backup Cost

Line item Type
Backup storage cost per GB (tape), inclusive of hardware and maintenance Cost (€)
Percentage of allocated on-premises storage actually utilised Percent (%)
Total size of backup data as a multiple of provisioned storage (for example, 2.5 means 2.5× provisioned storage) General IT Info
Averaged cost per VM for backup software licensing Cost (€)
Averaged additional SQL cost per VM for backup software licensing Cost (€)
Infrastructure cost per VM supporting transport, servers, and facilities for backups Cost (€)

Windows License Cost

Line item Type
Windows Standard licence cost for a 2-core pack Cost (€)
Windows Datacenter licence cost for a 2-core pack Cost (€)
Monthly cost of an Extended Security Update (ESU) for Windows Datacenter 2-core pack via Azure Arc Cost (€)

SQL License Cost

Line item Type
SQL Server Enterprise licence cost per 2 cores Cost (€)
SQL Server Standard licence cost per 2 cores Cost (€)
Monthly cost of an ESU for SQL Enterprise 2-core pack via Azure Arc Cost (€)
Monthly cost of an ESU for SQL Standard 2-core pack via Azure Arc Cost (€)

Disaster Recovery Cost

Line item Type
DR software licensing per VM Cost (€)
DR licensing for SQL Servers per VM Cost (€)
DR runbooks and automation per VM Cost (€)
DR compliance per VM, inclusive of documentation and auditing Cost (€)
Facility cost of DR on-premises, as a percentage of the cost of running all servers on-premises Percent (%)

Data Center Cost

Line item Type
Data centre construction cost of a single rack, amortised over 20 years: covers rack setup and rack space, including land and construction Cost (€)

Electricity Cost

Line item Type
Average electricity price per kWh Cost (€)

Networking Cost

Line item Type
Network hardware and software costs as a percentage of hardware and software costs Percent (%)
Network maintenance cost as a percentage of network hardware and software costs Percent (%)
Amount of data transferred throughout your network per month, in GB. Used to size ExpressRoute requirements General IT Info
Standard estimate of outbound network volume for the entire Azure environment, in GB per month General IT Info

Endpoint Protection Cost

Line item Type
Common monthly commercial average for modern EPP/EDR tools, per VM Cost (€)

Alerting and Monitoring Cost

Line item Type
Common monthly commercial average for monitoring and alerting tools (for example, SolarWinds, Tivoli, SCOM) in traditional on-premises environments, per VM Cost (€)
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