Amazon EC2 Cost Comparison Calculator 042810

Amazon EC2 Cost Comparison Calculator
Contents
Amazon EC2 Cost Comparison Calculator. Go to "Main" tab to begin…
Publish Date
Original: December 7, 2009. Updated: February 29, 2012
Go to http://aws.amazon.com/economics for the most current version.
Additional References
For more information on how to use the Amazon EC2 Cost Comparison Calculator, consult the User Guide for Amazon E
Cost Comparison Calculator, at http://aws.amazon.com/economics
AWS Economics Center

User Guide: Amazon EC2 Cost Comparison Calculator
Amazon EC2 Detail Page
Notices
© 2009-2012 Amazon.com, Inc., or its affiliates. This workbook and accompanying user guide is provided for informatio
purposes only. Amazon Web Services LLC is not responsible for any damages related to the information in these
documents, which are provided “as is” without warranty of any kind, whether express, implied, or statutory. Nothing in
workbook or accompanying user guide creates any warranties or representations from Amazon Web Services LLC, its
affiliates, suppliers, or licensors. This workbook and accompanying user guide do not modify the applicable terms and
conditions governing your use of Amazon Web Services technologies, including the Amazon Web Services website. This
workbook and accompanying user guide represents Amazon Web Services' current product offerings as of the date of iss
and are subject to change without notice.
Main
Amazon EC2 Cost Comparison Calculator
This tab compares the annual cost of Amazon Elastic Compute Cloud (EC2) with the annual cost of co-located and on-site corporate data centers.
Compare the annual cost of Amazon EC2 with an equivalent deployment in co-located and on-site data centers by entering a few basic inputs. Default assumptions are based on
industry data and AWS customer research. All assumptions can be edited by users. For more detail, users can go to the "Amazon EC2," "Co-Lo," and "On-Site" tabs to view detailed
calculations or edit default assumptions for each scenario.
Instructions Value = User Inputs Annual Total Cost of Ownership (TCO) Summary
(1) Select operating system of instances

Amazon EC2 (On-Demand Instances Only) $214,664
(2) Enter number of baseline instances (to meet minimum demand)
(3) Enter percentage of time each year baseline instances are used (i.e. 75%) Amazon EC2 (w/ 1 Year Reserved Instances)* $152,591
(4) Enter additional number of peak instances (to meet maximum demand)
Amazon EC2 (w/ 3 Year Reserved Instances)* $119,763
(5) Enter percentage of time each year peak instances are used (i.e. 10%)
(6) Enter avg. monthly data transfer "In" to instances from the Internet Co-Location $1,195,446
(7) Enter avg. monthly data transfer "Out" from instances to the Internet
On-Site $2,572,634
* Amazon EC2 users can choose to pay on-demand instance usage charges, or to pay a one-time fee to “reserve” the right
to run instances (for 1 or 3 years) at significantly reduced hourly rates. The Amazon EC2 Cost Comparison Calculator
Operating System (1) assumes Reserved Instances will be used for "baseline" instance usage, and On-Demand Instances will be used for "peak"
instance usage. Reserved Instance types (Light, Medium, Heavy) are optimized based on the user-defined annual utilization
Operating System
Linux/Unix of baseline instances. (Note: Spot Instances are not included in this analysis.)
Size of Deployment/Utilization (2) (3)

No. of Baseline Annual
Amazon EC2 Instance Type Instances Utilization Cost Components
Standard Small 300 75% Amazon EC2
Standard Large 0 75%
Standard Extra Large 0 75%
High-Memory Extra Large 0 75% 1.1 Instance Fees and Usage
High-Memory Double Extra Large 0 75% 1.2 Data Transfer
High-Memory Quadruple Extra Large 0 75%
High-CPU Medium 0 75%
High-CPU Extra Large 0 75%
(4) (5)
No. of Peak Annual
Amazon EC2 Instance Type Instances Utilization
Standard Small 700 10% Co-Location
Standard Large 0 10%
Standard Extra Large 0 10%
High-Memory Extra Large 0 10%
High-Memory Double Extra Large 0 10% 2.1 Server Hardware
High-Memory Quadruple Extra Large 0 10% 2.2 Network Hardware
High-CPU Medium 0 10% 2.3 Hardware Maintenance
High-CPU Extra Large 0 10% 2.4 Operating System
2.5 Co-Location Expense
Total Deployment/Average Utilization 1,000 30% 2.6 Remote Hands Support
2.7 Data Transfer
Data Transfer
(6) (7)
Avg. Monthly Avg. Monthly

Data Transfer Data Transfer
"In" Per Instance "Out" Per
Amazon EC2 Instance Type (GB) Instance (GB) On-Site
Standard Small 10 20
3.1 Server Hardware
Standard Large 10 20
3.2 Network Hardware
Standard Extra Large 10 20
3.3 Hardware Maintenance
High-Memory Extra Large 10 20
High-Memory Double Extra Large 10 20 3.4 Operating System
High-Memory Quadruple Extra Large 10 20 3. 5 Power and Cooling
High-CPU Medium 10 20 3.6 Data Center Construction

High-CPU Extra Large 10 20 3.7 Administration
3.8 Data Transfer
Total Monthly Data Transfer (GB) 2,950 5,900
1. Amazon Elastic Compute Cloud (EC2)
Detailed Assumptions and Calculations
This tab highlights the assumptions and calculations used to determine the total annual cost of ownership of Amazon EC2.
TCO AMAZON EC2
Amazon EC2 can be purchased using several different pricing options: 1) On-demand Instances, 2) 1 Year Reserved Instances*, 3) 3 Year Reserved Instances*, or d) Spot Instances**
On-Demand Instances Annual Cost

1.1 On-demand Instance Usage $206,170 Usage of 2,577,120 on-demand instance hours at an average price of $0.08 per hour
1.2 Data Transfer $8,495 Monthly upload of 2,950 GB, at $0.00 per GB; monthly download of 5,900 GB, at average price of $0.12 per GB
$214,664
1 Year Reserved Instances Annual Cost Explanation

1.1c Total Reserved Instance Expense $95,174 Usage of 1,965,600 reserved instance hours (300 reserved instances) at an average price of $0.05 per hour
1.1d On-demand Instance Usage $48,922 Usage of 611,520 on-demand instance hours (700 on-demand instances) at an average price of $0.08 per hour
$152,591
3 Year Reserved Instances Annual Cost Explanation

1.1c Total Reserved Instance Expense $62,346 Usage of 1,965,600 reserved instance hours (300 reserved instances) at an average price of $0.03 per hour
1.1d On-demand Instance Usage $48,922 Usage of 611,520 on-demand instance hours (700 on-demand instances) at an average price of $0.08 per hour
$119,763
*The Amazon EC2 Cost Comparsion Calculator choses the optimal Reserved Instance Type (Light, Medium Heavy) for the expected baseline utilization.
** Spot Instances are not currently evaluted in the Amazon EC2 Cost Comparison Calculator. To estimate cost of running Spot Instances, users can edit the On-Demand prices below. See the User
Guide for more information.
Note: All assumptions can be edited below
CALCULATIONS/ASSUMPTIONS
Value = User Inputs

1.1 Instance Hours
Annual Expense with On-Demand Pricing
Annual Expense (On-Demand Pricing) $206,170 Total hours of instance usage multiplied by instance hour price
On-Demand Pricing
The annual instance cost is the total annual hours of instance usage multiplied by the hourly cost of Amazon EC2. The hourly price is determined by the user-defined instance type, region, and operating system.
Maximium
Instances
No. of Baseline Instances*
+ No. of Peak Instances*
= Needed Average Annual Usage
Average
of Baseline
AnnualInstances*
Usage of Peak Instances*
Standard Small 300 700 1,000 75% 10%
Standard Large 0 0 0 75% 10%
Standard Extra Large 0 0 0 75% 10%
High-Memory Extra Large 0 0 0 75% 10%
High-Memory Double Extra Large 0 0 0 75% 10%
High-Memory Quadruple Extra Large 0 0 0 75% 10%
High-CPU Medium 0 0 0 75% 10%
High-CPU Extra Large 0 0 0 75% 10%
300 700 1000
On-Demand Instance Pricing

US East (N. Virginia) Region
Linux/Unix Windows Hourly Price*
Standard Small $0.080 $0.12 $0.080 * User Selected:
Standard Large $0.32 $0.46 $0.320 OS: Linux/Unix
Standard Extra Large $0.64 $0.92 $0.640 User inputs from "Main" tab
High-Memory Extra Large $0.45 $0.57 $0.450
High-Memory Double Extra Large $0.90 $1.14 $0.900
High-Memory Quadruple Extra Large $1.80 $2.28 $1.800
High-CPU Medium $0.17 $0.29 $0.165
High-CPU Extra Large $0.66 $1.14 $0.660
Hours of Billable Hours Total Annual

Baseline Hours of Peak of Instance Price per EC2 Instance
Usage* + Usage** = Usage x Instance Hour = Expense
Standard Small 1,965,600 611,520 2,577,120 $0.080 $206,170
Standard Large 0 0 0 $0.32 $0
Standard Extra Large 0 0 0 $0.64 $0
High-Memory Extra Large 0 0 0 $0.45 $0
High-Memory Double Extra Large 0 0 0 $0.90 $0
High-Memory Quadruple Extra Large 0 0 0 $1.80 $0
High-CPU Medium 0 0 0 $0.17 $0
High-CPU Extra Large 0 0 0 $0.66 $0
1,965,600 611,520 2,577,120 $206,170
* Number of Baseline Instances x Average Annual Usage of Baseline Instances x 8,736 hours per year (24 hours x 7 days x 52 weeks)
** Number of Peak Instances x Average Annual Usage of Peak Instances x 8,736 hours per year (24 hours x 7 days x 52 weeks)
Annual Expense with Reserved Instance Pricing
1 Year 3 Year
Total Reserved Instance Expense $95,174 $62,346 Hours of baseline instance usage multiplied by hourly reserved instance price
Annual Usage Expense (On-Demand Pricing) $48,922 $48,922 Hours of peak instance usage multiplied by hourly on-demand instance price
Total $144,096 $131,968
* The 3-year one-time reserve fee is annualized over three years
Reserved Instance Pricing
This section calculates the cost of Amazon EC2 for scenarios where 1 Year and 3 Year Reserved Instances are purchased for baseline instance usage. The total cost of reserved instances is calculated by summing a) the one-time initial reserve fees for
baseline instances, b) the cost of baseline instance hour usage at reserved instance usage prices, and c) the cost of peak server usage at on-demand instance prices.
Average
No. of Maximium Annual Usage Annual Usage
Baseline No. of Peak Instances of Baseline of Peak
Instances* + Instances* = Needed Instances* Instances*
Standard Small 300 700 1,000 75% 10%
Standard Large 0 0 0 75% 10%
Standard Extra Large 0 0 0 75% 10%
High-Memory Extra Large 0 0 0 75% 10%
High-Memory Double Extra Large 0 0 0 75% 10%
High-Memory Quadruple Extra Large 0 0 0 75% 10%
High-CPU Medium 0 0 0 75% 10%
High-CPU Extra Large 0 0 0 75% 10%
* User inputs from "Main" tab
Reserved Instance Pricing

One-Time Payment (Linux/Unix)
Light Utilization Medium Utilization Heavy Utilization

1 Year 3 Year 1 Year 3 Year 1 Year 3 Year * User Selected:
Standard Small $69 $106 $160 $250 $195 $300 OS: Linux/Unix
Standard Large $276 $425 $640 $1,000 $780 $1,200 User inputs from "Main" tab
Standard Extra Large $552 $850 $1,280 $2,000 $1,560 $2,400
High-Memory Extra Large $353 $548 $850 $1,283 $1,030 $1,550
High-Memory Double Extra Large $706 $1,096 $1,700 $2,566 $2,060 $3,100
High-Memory Quadruple Extra Large $1,412 $2,192 $3,400 $5,132 $4,120 $6,200
High-CPU Medium $178 $273 $415 $638 $500 $775
High-CPU Extra Large $712 $1,092 $1,660 $2,552 $2,000 $3,100
Usage Fee (Linux/Unix)

1 Year 3 Year 1 Year 3 Year 1 Year 3 Year
Standard Small $0.039 $0.031 $0.024 $0.019 $0.016 $0.013
Standard Large $0.156 $0.124 $0.096 $0.076 $0.064 $0.052
Standard Extra Large $0.312 $0.248 $0.192 $0.152 $0.128 $0.104
High-Memory Extra Large $0.220 $0.175 $0.133 $0.105 $0.088 $0.070
High-Memory Double Extra Large $0.440 $0.350 $0.266 $0.210 $0.176 $0.140
High-Memory Quadruple Extra Large $0.880 $0.700 $0.532 $0.420 $0.352 $0.280
High-CPU Medium $0.100 $0.088 $0.060 $0.053 $0.040 $0.035
High-CPU Extra Large $0.400 $0.352 $0.240 $0.212 $0.160 $0.140
One-Time Payment (Windows)

Standard Small $69 $106 $160 $250 $195 $300
Standard Large $276 $425 $640 $1,000 $780 $1,200
Standard Extra Large $552 $850 $1,280 $2,000 $1,560 $2,400
High-Memory Extra Large $353 $548 $850 $1,283 $1,030 $1,550
High-Memory Double Extra Large $706 $1,096 $1,700 $2,566 $2,060 $3,100
High-Memory Quadruple Extra Large $1,412 $2,192 $3,400 $5,132 $4,120 $6,200
High-CPU Medium $178 $273 $415 $638 $500 $775
High-CPU Extra Large $712 $1,092 $1,660 $2,552 $2,000 $3,100
Usage Fee (Windows)

Standard Small $0.059 $0.051 $0.044 $0.039 $0.036 $0.033
Standard Large $0.235 $0.204 $0.175 $0.156 $0.145 $0.132
Standard Extra Large $0.470 $0.408 $0.350 $0.312 $0.290 $0.264
High-Memory Extra Large $0.290 $0.245 $0.203 $0.175 $0.158 $0.140
High-Memory Double Extra Large $0.580 $0.490 $0.405 $0.350 $0.315 $0.280
High-Memory Quadruple Extra Large $1.160 $0.980 $0.810 $0.700 $0.630 $0.560
High-CPU Medium $0.165 $0.153 $0.125 $0.118 $0.105 $0.100
High-CPU Extra Large $0.660 $0.612 $0.500 $0.472 $0.420 $0.400
a) Initial Reserve Expense - Linux/Unix

One-Time One-Time One-Time
No. of Baseline Light Medium Heavy Expense Expense Expense
1-Year Instances x Utilization & Utilization & Utilization = (Light) (Medium) (Heavy)
Standard Small 300 $69 $160 $195 $20,700 $48,000 $58,500
Standard Large 0 $276 $640 $780 $0 $0 $0
Standard Extra Large 0 $552 $1,280 $1,560 $0 $0 $0
High-Memory Extra Large 0 $353 $850 $1,030 $0 $0 $0
High-Memory Double Extra Large 0 $706 $1,700 $2,060 $0 $0 $0
High-Memory Quadruple Extra Large 0 $1,412 $3,400 $4,120 $0 $0 $0
High-CPU Medium 0 $178 $415 $500 $0 $0 $0
High-CPU Extra Large 0 $712 $1,660 $2,000 $0 $0 $0
300 $20,700 $48,000 $58,500
One-Time One-Time One-Time

No. of Baseline Light Medium Heavy Expense Expense Expense
3-Year* Instances x Utilization & Utilization & Utilization = (Light) (Medium) (Heavy)
Standard Small 300 $106 $250 $300 $10,630 $25,000 $30,000
Standard Large 0 $425 $1,000 $1,200 $0 $0 $0
Standard Extra Large 0 $850 $2,000 $2,400 $0 $0 $0
High-Memory Extra Large 0 $548 $1,283 $1,550 $0 $0 $0
High-Memory Double Extra Large 0 $1,096 $2,566 $3,100 $0 $0 $0
High-Memory Quadruple Extra Large 0 $2,192 $5,132 $6,200 $0 $0 $0
High-CPU Medium 0 $273 $638 $775 $0 $0 $0
High-CPU Extra Large 0 $1,092 $2,552 $3,100 $0 $0 $0
300 $10,630 $25,000 $30,000
*Note: One-Time Expense (3 Year Reserve) is divided by 3 (years) to determine annual initial reserve expense
b) Baseline (Reserved Instance) Usage Expense - Linux/Unix
Hours of
Baseline Annual Usage Annual Usage Annual Usage
Instance Light Medium Heavy Expense Expense Expense
1-Year Usage* x Utilization & Utilization & Utilization = (Light) (Medium) (Heavy)**
Standard Small 1,965,600 $0.039 $0.024 $0.016 $76,658 $47,174 $41,933
Standard Large 0 $0.156 $0.096 $0.064 $0 $0 $0
Standard Extra Large 0 $0.312 $0.192 $0.128 $0 $0 $0
High-Memory Extra Large 0 $0.220 $0.133 $0.088 $0 $0 $0
High-Memory Double Extra Large 0 $0.440 $0.266 $0.176 $0 $0 $0
High-Memory Quadruple Extra Large 0 $0.880 $0.532 $0.352 $0 $0 $0
High-CPU Medium 0 $0.100 $0.060 $0.040 $0 $0 $0
High-CPU Extra Large 0 $0.400 $0.240 $0.160 $0 $0 $0
1,965,600 $76,658 $47,174 $41,933
Hours of
Baseline Annual Usage Annual Usage Annual Usage
Instance Light Medium Heavy Expense Expense Expense
3-Year Usage* x Utilization & Utilization & Utilization = (Light) (Medium) (Heavy)**
Standard Small 1,965,600 $0.031 $0.019 $0.013 $60,934 $37,346 $34,070
Standard Large 0 $0.124 $0.076 $0.052 $0 $0 $0
Standard Extra Large 0 $0.248 $0.152 $0.104 $0 $0 $0
High-Memory Extra Large 0 $0.175 $0.105 $0.070 $0 $0 $0
High-Memory Double Extra Large 0 $0.350 $0.210 $0.140 $0 $0 $0
High-Memory Quadruple Extra Large 0 $0.700 $0.420 $0.280 $0 $0 $0
High-CPU Medium 0 $0.088 $0.053 $0.035 $0 $0 $0
High-CPU Extra Large 0 $0.352 $0.212 $0.140 $0 $0 $0
1,965,600 $60,934 $37,346 $34,070
* Number of Baseline Instances x Average Annual Usage of Baseline Instances x 8,736 hours per year (24 hours x 7 days x 52 weeks)
** Heavy Utilization Reserved Instances charge Usage Fees for every hour in the Reserved Instance term you purchase
c) Total Reserve Instance Expense - Linux/Unix
Total Annual Total Annual Total Annual

Expense Expense Expense Chosen Reserved Instance (Lowest
1-Year (Light) (Medium) (Heavy) cost)
Standard Small $97,358 $95,174 $100,433 Medium $95,174
Standard Large $0 $0 $0 $0
Standard Extra Large $0 $0 $0 $0
High-Memory Extra Large $0 $0 $0 $0
High-Memory Double Extra Large $0 $0 $0 $0
High-Memory Quadruple Extra Large $0 $0 $0 $0
High-CPU Medium $0 $0 $0 $0
High-CPU Extra Large $0 $0 $0 $0
$95,174
Total Annual Total Annual Total Annual

Expense Expense Expense Chosen Reserved Instance (Lowest
3-Year (Light) (Medium) (Heavy) cost)
Standard Small $71,564 $62,346 $64,070 Medium $62,346
Standard Large $0 $0 $0 $0
Standard Extra Large $0 $0 $0 $0
High-Memory Extra Large $0 $0 $0 $0
High-Memory Double Extra Large $0 $0 $0 $0
High-Memory Quadruple Extra Large $0 $0 $0 $0
High-CPU Medium $0 $0 $0 $0
High-CPU Extra Large $0 $0 $0 $0
$62,346
d) Peak (On-Demand Instance) Usage Expense
Annual Usage
On-Demand Expense (On-
Hours of Peak Price per EC2 Demand
Usage** x Instance Hour = Instances)
Standard Small 611,520 $0.08 $48,922
Standard Large 0 $0.32 $0
Standard Extra Large 0 $0.64 $0
High-Memory Extra Large 0 $0.45 $0
High-Memory Double Extra Large 0 $0.90 $0
High-Memory Quadruple Extra Large 0 $1.80 $0
High-CPU Medium 0 $0.17 $0
High-CPU Extra Large 0 $0.66 $0
611,520 $48,922
** Number of Peak Instances x Average Annual Usage of Peak Instances x 8,736 hours per year (24 hours x 7 days x 52 weeks)
1.2 Data Transfer
Data Transfer "In"
Annual Upload Expense $0 Monthly cost of data transfer (upload) multiplied by 12 (months/year)
Monthly
Monthly Bandwidth Months per Annual
Upload (GB) x Upload Price per=GB per Month
Cost x Year = Expense
2,950 $0.00 $0 12 $0
Data Transfer "Out"
Annual Download Expense $8,495 Monthly cost of data transfer (download) multiplied by 12 (months/year)
Monthly
Download (GB)
5,900
Download Price per GB per Month
Monthly
Monthly US East (N. Bandwidth Months per Annual
Download by Price Tier Download (GB) Virginia) Cost x Year = Expense
First 1 GB per month 1 $0.00 $0 12 $0
Up to 10 TB per Month 5,899 $0.12 $708 12 $8,495
Next 40 TB per Month 0 $0.09 $0 12 $0
Next 100 TB per Month 0 $0.07 $0 12 $0
Over 150 TB per Month 0 $0.05 $0 12 $0
5,900.0 $708 $8,495
©Copyright 2012 Amazon Web Services, All Rights Reserved

2. Co-Location
This tab highlights the assumptions and calculations used to determine the annual cost of operating hardware in co-located data centers. All default assumptions can be edited.
TCO CO-LOCATION
Annual Cost Explanation

2.1 Server Hardware $121,000 Purchase price of 1,000 total servers ($363,000) divided by useful life of 3 years
2.2 Network Hardware $24,200 Purchase price of 1,000 total servers ($363,000) multiplied by 20%, divided by useful life of 3 years
2.3 Hardware Maintenance $43,560 Purchase price of server and network hardware ($435,600) multipled by 10% annual maintenance fee
2.4 Operating System $0 Purchase price of OS (@ $0 per server) multiplied by 1,000 servers divided by useful life of 3 years
2.5 Co-Location Expense $968,576 Assumes 2,632 rack units (U); initial non-recurring cost of $24 per U and monthly recurring cost of $30 per U
2.6 Remote Hands Support $15,000 Assumes 10% annual server failure rate, 1 repair hour per failure, and a repair rate of $150 per hour
2.7 Data Transfer $23,110 Assumes peak monthly transfer of 27.5 mbps charged at $70 per Mb per month
$1,195,446
Value = User Inputs

2.1 Server Hardware
Initial Capital Expense $363,000 Number of servers multiplied by server unit cost
Annualized Expense $121,000 Initial capital cost divided by hardware useful life
No. of Steady No. of Peak Initial Capital Annual Server

State Servers + Servers = Total Number ofxServers
Cost per Server = Expense Server Useful Life (Years)Expense
Standard Small 300 700 1,000 $363 $363,000 $121,000
Standard Large 0 0 0 $1,452 $0 $0
Standard Extra Large 0 0 0 $2,903 $0 $0
High-Memory Extra Large 0 0 0 $3,237 $0 $0
3 Years
High-Memory Double Extra Large 0 0 0 $6,473 $0 $0
High-Memory Quadruple Extra Large 0 0 0 $12,946 $0 $0
High-CPU Medium 0 0 0 $682 $0 $0
High-CPU Extra Large 0 0 0 $2,726 $0 $0
1,000 $363,000 $121,000
(Note: No. of steady state and peak servers is derived from user inputs on "Main" tab)
Initial Capital Expense $72,600 Initial capital cost of servers multiplied by network cost (%)
Annual
Initial Server Initial Capital Network
Cost x Network Cost (% of
= Initial
Expense
Server Cost)÷ Network Useful Life
= (Years)
Expense
Network Hardware $363,000 20% $72,600 3 Years $24,200
Annual Maintenance Expense $43,560 Initial capital cost of hardware (servers & network) multiplied by annual maintenance cost (%)
Annual
Initial Server Initial Network Total Hardware Maintenance
Cost + Cost = Cost x Annual Maintenance
= Cost
Expense
(%)
Annual Hardware Maintenance 363,000 $72,600 $435,600 10% $43,560
2.4 Software Operating System
Initial Capital Expense $0 Number of servers multiplied by server software unit cost
Annualized Expense $0 Initial capital cost divided by server useful life
OS Cost per Server

Linux/Unix $0 <--User selected 'Linux/Unix' on the 'Overview' tab. This value ($0) will be used.
Windows $2,999
Operating
Total Number System Cost Server Useful Annual
of Servers x per Server = Initial Expense ÷ Life (Years)* = Expense
Operating System 1,000 $0 $0 3 Years $0
* From above section 2.1, above
2.5 Co-Location Expense
Step 1: Determine the number of rack units (U) needed
Number of U Needed (Power) 2,632 Maximum server power usage divided by user-defined power per rack U (in watts)
Number of U Needed (Space) 1,000 Total number of rack units (U) based on server size
Rack U Needed (Max Power/Space) 2,632 Number of rack U needed based on the greater of power and space demand
(C) Copyright 2009, Amazon Web Services, All Rights Reserved

Note: The number of rack units (U) needed is based on either the space needs of the servers or the power needs of the servers, whichever is greater.
Rack U
Total Number Total Power Needed
of Servers x Nameplate Power
= perUsage
Server(Watts)
(Watts) ÷ Power per Rack U=(Watts)(Power)
Standard Small 1,000 150 150,000 57 2,632
Standard Large 0 240 0
Standard Extra Large 0 391 0
High-Memory Extra Large 0 405 0
High-Memory Double Extra Large 0 515 0
High-Memory Quadruple Extra Large 0 630 0
High-CPU Medium 0 289 0
High-CPU Extra Large 0 309 0
1,000 150,000
Rack U
Total Number Needed
of Servers x Server Space (Rack
= U) (Space) Max
Standard Small 1,000 1 1,000 2,632
Standard Large 0 2 0 Rack Units
1,000 1,000
Step 2: Determine the total co-location cost
Initial Co-Location Setup Fee $63,168 Number of RUs multiplied by user-defined co-location set-up fee per rack U
Annualized Expense $21,056 Initial co-location setup fee divided by server useful life
On-going Co-location Expense $947,520 Number of rack U needed multiplied by user-defined monthly fee per rack U multiplied by 12 (months/year)
Total Annual Co-Location Expense $968,576 Sum of annualized non-recurring set-up fees and monthly reocurring monthly fees
Total Set-up Server Useful Annual

Rack U Needed x Initial Co-Lo Set-up
= Fee (perFee
U) ÷ Life = Expense
Co-lo Non-Recurring Cost (NRC) 2,632 $24 $63,168 3 $21,056
Monthly Co-Lo Annual

Rack U Needed x Monthly Co-Lo Fee
= (Per U)
Expense x Months/Year = Expense
Co-lo Monthly Recurring Cost (MRC) 2,632 $30 $78,960 12 $947,520
2.6 Remote Hands Support
Annual Expense $15,000 Number of servers multiplied by user-defined annual failure rate, hours/failure, and smart-hands cost/hour
Total Number Annual

of Servers x Annual Server Failure
x Repair
Rate Hours per xFailure
Remote Hands Cost
= per Hour
Expense
Annual Maintenance Cost 1,000 10% 1 $150 $15,000
2.7 Data Transfer
Total Annual Bandwith Expense $23,110 Monthly bandwidth cost multiplied by 12 (months/year)
Monthly
[ Upload (GB) + Download (GB) ] x Megabits per GB ÷ Seconds per Month
= Average Mbps x Peak/Average Ratio
= Peak Mbps
Bandwidth Usage 2,950 5,900 8,192 2,635,200 27.5 1.0 27.5
The co-lo pricing tiers below allows to define different prices for varying levels of data transfer. Tiers should be in ascending order.
Co-Lo Pricing Tiers
Tier Price per Mb/sec

0 - 1 Mbps 0 $100
1 - 5 Mbps 1 $80
5 - 10 Mbps 5 $75
10 - 30 Mbps 10 $70 <---This pricing tier will be used based on monthly peak mbps of 27.5
30 - 50 Mbps 30 $60
50 - 100 Mbps 50 $50
100 - 150 Mbps 100 $40
> 150 Mbps 150 $30
Price per Months per

Peak Mbps Mb/sec Monthly Cost Year Total
Bandwidth Expense 27.5 $70.00 $1,926 12 $23,110
(C) Copyright 2009, Amazon Web Services, All Rights Reserved

3. On-Site
This tab highlights the assumptions and calculations used to determine the annual cost of operating hardware in on-site data centers. All default assumptions can be edited.
TCO ON-SITE
Annual Cost Explanation

3.1 Server Hardware $121,000 Purchase price of 1,000 total servers ($363,000) divided by useful life of 3 years
3.2 Network Hardware $24,200 Purchase price of 1,000 total servers ($363,000) multiplied by 20% divided by useful life of 3 years
3.3 Hardware Maintenance $43,560 Purchase price of server and network hardware ($435,600) multipled by 10% annual maintenance fee
3.4 Operating System $0 Purchase price of Linux/Unix OS (@ $0 per server) multiplied by 1,000 servers divided by useful life of 3 years
3. 5 Power and Cooling $147,420 Assumes power/cooling for 1,000 servers, with a data center PUE of 2.5 and electricity price of $0.09 per kW hour
3.6 Data Center Construction $128,200 Assumes $23,000 per kW of redundant IT power and $300 per sq ft of space divided by useful life of 15 years
3.7 Administration $2,100,000 Assumes 1 FTE per 50 servers at an annual salary of $105,000 per year
3.8 Data Transfer $8,254 Assumes peak monthly data transfer of 27.5 mbps charged at $25 per Mb per month
$2,572,634
Value = User Inputs

3.1 Server Hardware
Initial Capital Expense $363,000 Number of servers multiplied by server unit cost
Annualized Expense $121,000 Initial capital cost divided by server useful life
No. of Steady No. of Peak Annual Server

State Servers* + Servers* = Total Number ofxServers
Cost per Server = Initial Cost Server Useful Life (Years)Expense
Standard Small 300 700 1,000 $363 $363,000 $121,000
Standard Large 0 0 0 $1,452 $0 $0
Standard Extra Large 0 0 0 $2,903 $0 $0
High-Memory Extra Large 0 0 0 $3,237 $0 $0
3 Years
High-Memory Double Extra Large 0 0 0 $6,473 $0 $0
High-Memory Quadruple Extra Large 0 0 0 $12,946 $0 $0
High-CPU Medium 0 0 0 $682 $0 $0
High-CPU Extra Large 0 0 0 $2,726 $0 $0
1,000 $363,000 $121,000
(Note: No. of steady state and peak servers is derived from user inputs on "Main" tab)
Initial Capital Expense $72,600 Initial capital cost of servers multiplied by network cost (%)
Annual
Initial Server Initial Network Network
Cost x Network Cost (% of
= Initial Server
Cost Cost) ÷ Network Useful Life
= (Years)
Expense
Network Hardware $363,000 20% $72,600 3 Years $24,200
Annual Maintenance Expense $43,560 Initial capital cost of hardware (servers & network) multiplied by annual maintenance cost (%)
Annual
Initial Server Initial Network Total Hardware Maintenance
Cost + Cost = Cost x Annual Maintenance
= Cost
Expense
(%)
Annual Hardware Maintenance 363,000 $72,600 $435,600 10% $43,560
3.4 Software Operating System
Initial Capital Expense $0 Number of servers multiplied by server software unit cost
Annualized Expense $0 Initial capital cost divided by server useful life
OS Cost per Server

Linux/Unix $0 <--User selected 'Linux/Unix' on the 'Overview' tab. This value ($0) will be used.
Windows $2,999
Operating
Total Server System Cost Server Useful Annual
Demand x per Server = Initial Expense ÷ Life (Years)* = Expense
Operating System 1,000 $0 $0 3 Years $0
* From above section 3.1, above
3.5 Power and Cooling
Total Annual Power Cost $147,420 Annual power usage multiplied by user-defined electricity price per kW.
Average Server Server Annual

Total Number Power Usage Power Usage
of Servers x Nameplate Power
x perPower
ServerConversion
(Watts) = Factor (Watts) x Hours per Year ÷ Watts/Kilowatt = (kW)
Standard Small 1,000 150 75,000 8,736 1000 655,200
Standard Large 0 240 0 8,736 1000 0
Standard Extra Large 0 391 0 8,736 1000 0
High-Memory Extra Large 0 405 0 8,736 1000 0
50%
High-Memory Double Extra Large 0 515 0 8,736 1000 0
High-Memory Quadruple Extra Large 0 630 0 8,736 1000 0
High-CPU Medium 0 289 0 8,736 1000 0
High-CPU Extra Large 0 309 0 8,736 1000 0
1,000 75,000 655,200
Server Annual Infrastructure Total Annual

Power Usage Annual Power Power Usage Annual Power
(kW) x PUE = Usage (kW) (kW) x Price/kW hour = Expense
Total Annual Power Usage 655,200 2.5 982,800 1,638,000 $0.09 $147,420
3.6 Data Center Construction
Step 1: Determine the "kW component" construction cost
Total "kW Component" Construction Cost $1,725,000 Total average power usage multiplied by user-defined cost per kW data center build cost
Annual Cost $115,000 Total data center construction cost divided by estimated data center useful life
Total Data
Center
Server Power Watts/ Server Power Construction Annual Data
Usage (Watts) ÷ Kilowatt = Usage (kW) x Data Center Construction
= Cost
Cost per kW ÷ Data Center Useful
= LifeCenter Cost
75,000 1,000 75.0 $23,000 $1,725,000 15 Years $115,000
Step 2: Determine the number of rack units (U) needed
Number of U Needed (Power) 1,260 Total average server power usage divided by user-defined power per rack U (in watts)
Number of U Needed (Space) 1,000 Number of servers multiplied by the estimated space (rack units) occupied by each server
Rack U Needed (Max Power/Space) 1,260 Number of rack U needed based on the greater of power and space demand
Note: The number of rack units (U) needed is based on either a) the space needs of the servers or b) the power needs of the servers, whichever is greater.
Nameplate
Power per Total Average
Total Number Server Power Usage Rack U
of Servers x (Watts)* = (Watts) ÷ Power per Rack U=(Watts)Needed
Standard Small 1,000 150 150,000 119 1,260
Standard Large 0 240 0
1,000 150,000
Total Number Rack U

of Servers x Server Space (Rack
= U) Needed Max
Standard Small 1,000 1 1,000 1,260
Standard Large 0 2 0 Rack Units
1,000 1,000
* Nameplate Power per Server is from Section 3.5, above

Step 3: Determine the computer room construction cost
Computer Room Construction Cost $198,000 Rack units needed divided by rack units/rack, multipled by space per rack and computer room cost per ft 2
Annualized Expense $13,200 Computer room cost divided by computer room useful life
Annual
Rack U Computer Data Center Computer
Needed ÷ Rack Units per Rack
x Space per Rack (ft2)
x Computer RoomxConstruction
Room Cost
Cost (per
÷ ft2) Useful Life = Room Cost
1,260 42 22 $300 $198,000 15 Years $13,200
3.7 Administration
Total Annual Administration Expense $2,100,000 Administrators needed multiplied by user-defined average annual salary per FTE
Total Number Number of FTE Total Annual

of Servers Servers per FTE Needed Annual Salary per FTE Cost
1,000 50 20 $105,000 $2,100,000
3.8 Data Transfer
Total Cost of Data Transfer $8,254 Average monthly mbps mulitipled by user-defined cost per megabit multiplied by 12 (months/year)
Monthly
[ Upload (GB) + Download (GB) ] x Megabits per GB ÷ Seconds per Month
= Average Mbps
Bandwidth Usage 2,950 5,900 8,192 2,635,200 27.5
Monthly Monthly Months per

Average Mbps x Monthly Cost per= Megabit
Expense x Year = Annual Cost
27.5 $25.00 $688 12 $8,254

Definitions
Explanation of User-Inputs on Tabs 1-3
This tab provides a brief description of the user inputs on tabs 1-3. Please see User Guide: Amazon EC2 Cost Comparison Calculator for more information.
Amazon EC2
No. of Baseline Instances The number of instances used to meet minimum demand, categorized by Amazon EC2 instance type (Standard Small, Standard Large,
Standard Extra Large, High Memory Double Extra Large, High Memory Quadruple Extra Large, High-CPU Medium, High-CPU Extra Large)
No. of Peak Instances The additional number of on-demand instances (above baseline) needed for peak demand and utilized for less than 100% of the year,
categorized by Amazon EC2 instance type (Standard Small, Standard Large, Standard Extra Large, High-Memory Extra Large, High-Memory
Double Extra Large, High-Memory Quadruple Extra Large, High-CPU Medium, High-CPU Extra Large)
Average Annual Usage of Baseline The average percentage of time (each year) that baseline instances are utilized.
Instances (%)
Average Annual Usage of Peak Instances The average percentage of time (each year) that peak instances are utilized.
Amazon EC2 Instance Pricing The per hour usage price of Amazon EC2 instances. Per-hour compute prices are based on instance type, region, operating system, and
pricing model. Customers can choose to pay on-demand instance prices or reserved instance prices. See http://aws.amazon.com/ec2 for
more information on Amazon EC2 instance pricing.
Hours per Year The number of hours each year the server is turned on, assumes 24x7x52 = 8,736
Amazon EC2 Bandwidth Pricing The monthly bandwidth prices for Amazon EC2. Amazon EC2 bandwidth is charged on data transferred "in" and "out" of Amazon EC2.
Data transferred between two Amazon Web Services within the same region (i.e. between Amazon EC2 US and another AWS service in the
US, or between Amazon EC2 Europe and another AWS service in Europe) is free of charge (i.e., $0.00 per GB). Data transferred between
AWS services in different regions will be charged as Internet Data Transfer on both sides of the transfer. See http://aws.amazon.com/ec2
for more information on Amazon EC2 bandwidth pricing.
Co-location
Total Number of Servers Total server hardware demand. On the "Main" tab, users are asked to input the number of "baseline" and "peak" instances required to
support their application(s). The on-site tab converts these assumptions into EC2-equivalent server demand. (i.e. servers with similar CPU,
memory, and storage as existing Amazon EC2 instance types. The co-location scenario assumes that the maximum server demand
(baseline plus peak servers) will need to be purchased to meet demand.
Cost per Server Cost of servers, categorized by Amazon EC2 Instance type (Standard Small, Standard Large, Standard Extra Large, High CPU Medium, High
CPU Extra Large)
Server Useful Life Estimated useful life (in years) of servers
Network Cost The network hardware cost, expressed as a percentage of the initial purchase (or acquisition) price of server hardware
Network Useful Life Estimated useful life (in years) of network hardware
Annual Hardware Maintenance Cost Annual maintenance rate for server and network hardware as a percentage of initial purchase price
OS Cost per Server Operating system cost per server
Namplate Power per Server (W) The amount of power (watts) used by servers, categorized by Amazon EC2-equivalent server type (Standard Small, Standard Large,
Standard Extra Large, High Memory Double Extra Large, High Memory Quadruple Extra Large, High-CPU Medium, High-CPU Extra Large)
Power per Rack Unit (U) The allotment of power (watts) provided to each unit of rack space as determined by the co-location provider
Server Space The rack unit space occupied by Amazon EC2 equivalent servers, categorized by Amazon EC2-equivalent server type (Standard Small,
Standard Large, Standard Extra Large, High-Memory Extra Large, High-Memory Double Extra Large, High-Memory Quadruple Extra Large,
High-CPU Medium, High-CPU Extra Large)
Initial Co-Lo Set-up Fees The initial set-up fee charged by co-location providers to install equipment in each unit of space
On-going Co-Lo Fee The monthly fee charged by co-location providers per unit of space
Server Failure Rate The annual failure rate of servers, including episodes requiring configuration, reboot, troubleshooting, etc.
Repair Hours per Failure The average number of hours required to respond to server failures
Remote Hands Cost per Hour The hourly rate for remote hands support in a co-located data center
Megabits per GB Constant used to determine the number of megabits per GB (1,024 megabytes per gigabyte, and 8 bits per byte, or 1,024 x 8 = 8,192)
Seconds per Month The number of seconds in an average month. Assumes 60 seconds/minute x 60 minutes/hour x 24 hours/day x 7 days/week x 30.5
days/month = 2,635,200 seconds.
Peak-to-Average Ratio Conversion factor used to determine the peak actual data transfer per second (as a multiple of average data transfer)
Bandwidth Price Tiers The monthly cost per Mb/sec for bandwidth that is charged by the co-location provider. Most co-location providers charge bandwidth
based on a tiered system.
On-Site
Total Servers Needed The server hardware demand. On the "Main" tab, users are asked to input the number of "steady state" and "peak" instances required to
support their application(s). The on-site tab converts these assumptions into EC2-equivalent server demand. (i.e. servers with similar CPU,
memory, and storage as existing Amazon EC2 instance types. The co-location scenario assumes that the maximum server demand
(baseline plus peak servers) will need to be purchased to meet demand.
Cost per Server Cost of servers, categorized by Amazon EC2 Instance type (Standard Small, Standard Large, Standard Extra Large, High Memory Double
Extra Large, High Memory Quadruple Extra Large, High-CPU Medium, High-CPU Extra Large)
Server Useful Life Estimated useful life (in years) of servers
Network Cost The network hardware cost, expressed as a percentage of the initial purchase (or acquisition) price of server hardware
Network Useful Life Estimated useful life (in years) of network hardware
Annual Hardware Maintenance Cost Annual maintenance rate for server and network hardware as a percentage of initial purchase price
OS Cost per Server Operating system cost per server
Namplate Power per Server (W) The amount of power (watts) used by servers, categorized by Amazon EC2-equivalent server type (Standard Small, Standard Large,
Standard Extra Large, High-Memory Extra Large, High-Memory Double Extra Large, High-Memory Quadruple Extra Large, High-CPU
Medium, High-CPU Extra Large)
Power Conversion Factor The server nameplate value, which is marked on the server by the manufacturer, is the maxium possible power value that the server can
consume. Actual power consumption is typically much less than the nameplate power rating. To determine the power usage of server
hardware, the Amazon EC2 TCO Calculator de-rates the server nameplate value by a user-defined power conversion value. The power
conversion factor can vary considerably between 25% and 80% of the nameplate rating. (See
http://www.datacenterdynamics.com/Media/MediaManager/Greening%20IT.pdf for more information).
Hours per Year The number of hours each year the server is turned on, assumes 24x7x52 = 8,736
PUE The "power usage effectiveness" or PUE ratio is a metric used to determine the energy efficiency of a data center. A PUE of 3.0 means for
every 3.0 watts of electricity entering the facility, only 1.0 watts is used to support computing activities (i.e. servers) while the other 2.0
watts support other infrastructure (i.e. cooling).
Price per kW Hour Price per hour per kW of electricity
Data Center Construction Cost per kW The construction cost per kW of electricity demanded to build a data center with power, cooling, and auxiliary support systems.
Data Center Useful Life The expected useful life (in years) of a newly constructed data center
Power per Rack Unit (U) The allotment of power (watts) provided to each unit of rack space in the on-site data center
Server Space The rack unit space occupied by Amazon EC2 equivalent servers, categorized by Amazon EC2-equivalent server type (Standard Small,
Standard Large, Standard Extra Large, High Memory Double Extra Large, High Memory Quadruple Extra Large, High-CPU Medium, High-CPU
Extra Large)
Rack U per Rack The typical number of rack units in a standard 19” rack.
Space per Rack The amount of computer room space occupied by a rack included surrounding buffer space.
Computer Room Contruction Cost The cost per square ft to build a computer room in a data center.
Servers per FTE Number of servers that one FTE server administrator can support
Annual Salary per FTE Average annual salary of a FTE Administrator
Megabits per GB Constant used to determine the number of megabits per GB (1,024 megabytes per gigabyte, and 8 bits per byte, or 1,024 x 8 = 8,192)
Seconds per Month The number of seconds in an average month. Assumes 60 seconds/minute x 60 minutes/hour x 24 hours/day x 7 days/week x 30.5
days/month = 2,635,200 seconds.
Monthly Cost per Megabit Price for bandwidth per Mbps based on total transferred

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AWS Economics Center

(1) Select operating system of instances

Size of Deployment/Utilization (2) (3)

Avg. Monthly Avg. Monthly

High-Memory Quadruple Extra Large 10 20 3. 5 Power and Cooling

High-CPU Medium 10 20 3.6 Data Center Construction

On-Demand Instances Annual Cost

1 Year Reserved Instances Annual Cost Explanation

3 Year Reserved Instances Annual Cost Explanation

Value = User Inputs

Annual Expense with On-Demand Pricing

On-Demand Instance Pricing

Hours of Billable Hours Total Annual

Annual Expense with Reserved Instance Pricing

* The 3-year one-time reserve fee is annualized over three years

Reserved Instance Pricing

* User inputs from "Main" tab

Reserved Instance Pricing

Light Utilization Medium Utilization Heavy Utilization

Usage Fee (Linux/Unix)

One-Time Payment (Windows)

Light Utilization Medium Utilization Heavy Utilization

Usage Fee (Windows)

a) Initial Reserve Expense - Linux/Unix

One-Time One-Time One-Time

b) Baseline (Reserved Instance) Usage Expense - Linux/Unix

c) Total Reserve Instance Expense - Linux/Unix

Total Annual Total Annual Total Annual

Total Annual Total Annual Total Annual

d) Peak (On-Demand Instance) Usage Expense

1.2 Data Transfer

Data Transfer "In"

Data Transfer "Out"

©Copyright 2012 Amazon Web Services, All Rights Reserved

Annual Cost Explanation

Note: All assumptions can be edited below

Value = User Inputs

No. of Steady No. of Peak Initial Capital Annual Server

2.2 Network Hardware

2.3 Hardware Maintenance

2.4 Software Operating System

OS Cost per Server

* From above section 2.1, above

2.5 Co-Location Expense

Step 1: Determine the number of rack units (U) needed

(C) Copyright 2009, Amazon Web Services, All Rights Reserved

Step 2: Determine the total co-location cost

Total Set-up Server Useful Annual

Monthly Co-Lo Annual

2.6 Remote Hands Support

Total Number Annual

2.7 Data Transfer

Co-Lo Pricing Tiers

Tier Price per Mb/sec

Price per Months per

©Copyright 2012 Amazon Web Services, All Rights Reserved

(C) Copyright 2009, Amazon Web Services, All Rights Reserved

Annual Cost Explanation

Note: All assumptions can be edited below

Value = User Inputs

No. of Steady No. of Peak Annual Server

3.2 Network Hardware

3.3 Hardware Maintenance