1. Build Stronger Business Cases with the Azure Cost Estimator
George Carlisle

2. The Business Case: What is it?
What a good business case communicates:
The proposed initiative will have value and relative priority compared to alternative initiatives based on the objectives and expected benefits laid out in the business case
The performance indicators found in the business case are identified to be used for proactive realization of the business and behavioral change.
Preface
Table of Contents
Executive Briefing
Recommendation
Summary of Results
Decision to be Taken
Introduction
Business Drivers
Scope
Financial Metrics
Analysis
Assumptions
Cash Flow Statement (NPV)
Costs
Benefits
Risk
Strategic Options
Opportunity Costs
Conclusion, Recommendation, and Next Steps
Appendix

3. Business Impact: What is it?
Impact that affects the Top Line of the Business
Increase in Revenue > Any increase in customer revenue through increase in customer sales/service eg. Increasing the credit card sales, New Policy & policy renewal. – Business Impact
Improved cash flow -> Any improvement in Cash Flow through Daily Sales Outstanding(DSO)/Inventory/Reduction in ageing of un-applied cash & un- reconciled cash etc – Business Impact. This can lead to interest income that will be your P&L impact

4. P&L Impact: What is it?
Impact that affects the Bottom Line of the business
Loss Reduction ->
Any decrease in cash leakages, excessive payments, reduction in delinquencies / past dues, fraudulent claim/payments – P&L
Cost Reduction/ Cost Avoidance -> Any improvement leading to reduction in cost at client. – P&L
Operating cost/Productivity -> Improvement in efficiency by improving utilization and / or processing time eg. FTE(full time employee) reduction or more work with same FTEs – P&L

5. Income Statement Visualized

6. How do you represent BI and P&L for Continuous Improvement(CI) efforts?
CI Line Items
Base Case (Existing)
Case I (BI and P&L)
Case II (BI)
Case III (P&L)
Sales
10,000,000
20,000,000
15,000,000
IT Costs
1,000,000
2,000,000
750,000
Personnel Costs
Telecom Costs
Total Costs
3,000,000
6,000,000
2,500,000
% Operating Costs
30%
20%
25%
% Change YOY
50%
33% 0%
% Gross Profit
70%
80%
75%

7. The Holy Grail
A discussion that has Business Impact and P&L is the ideal situation! …but know the business culture!

8. The Azure Cost Estimator

9. Cost Estimator - UI

10. Cost Estimator - Scanning

11. Cost Estimator -SCVMM

12. Cost Estimator Hyper-V

13. Cost Estimator - VMWARE

14. Cost Estimator – Bare Metal

15. Cost Estimator – Bare Metal by IP Range

16. Scanning Notes:
An appropriate Azure instance is determined by the tool’s algorithm based on the specific Pricing Model selected. There are three Pricing Models available:
VM allocated
Cost Optimized
Performance Optimized
VM Allocated should be chosen if the user wants to replicate the capabilities of the on-premises machine hardware on the Azure instance. It takes 100 percent of the machine’s capacity as input.
Cost Optimized should be chosen when the user wants the Azure instance to be almost appropriate to run their average workload, as captured during the profiling scans. In other words, the Azure instance chosen would be adequate to run the workload levels user’s machine was running at the time of the scan. This option usually leads to an aggressive or economical cost estimate.
Performance Optimized is the pricing model that amplifies the on-premises machine’s hardware usage so that the resulting recommended instance can accommodate a higher level of workload. This option usually leads to a conservative cost estimate for cloud adoption.
The tool asks to choose any one approach for every report. This helps the tool adopt an optimal Azure instance recommendation strategy based on the user’s specific situation.

17. Caveats Hypervisor Prerequisites SCVMM
Supported Versions are SCVMM 2012 SP1, 2012 R2 and 2008 R2.
PowerShell Remoting listener should be enabled.
Hyper-V
Supported host OS versions are Windows Server 2012 R2, 2012 and 2008 R2.
Hyper-V should be allowed in Firewall Rules.
Linux
SSH should be enabled and running.
Only IP can be used as there is no way to resolve host name.
VMWARE vCenter
Internet Information Server (IIS)
VM Ware host agent service is running
Web service hosted on vCenter Host IIS should be up.
ESXi
Supported version is ESX 5.5
Web service hosted on ESX IIS server should be up.

18. Cost Estimator - Repository

19. Cost Estimator - Reports

20. Cost Estimator - Logs

21. Cost Estimator - Estimates

22. Cost Estimator – Scenarios 1-4
250 Remote App Users – Information Workers
Basic Sharepoint Farm (Includes SQL Enterprise License)
High Availability Sharepoint Farm (Includes SQL Enterprise License)
All Office 365 SSO Integration Components Deployed on Azure with HA Configuration

23. Cost Estimator – Scenarios 5-8
Dev/Test 25 Small VM’s
Common Infrastructure includes VPN and 5TB Egress Bandwidth Zone 1
Common Infrastructure includes VPN and 1TB Egress Bandwidth Zone 1
50 Protected VMs DR On-Premise to Azure

24. Cost Estimator – Azure Services DIY 1

25. Cost Estimator – Azure Services DIY 2

26. Cost Estimator – Private Scenarios

27. Cost Estimator – Currencies
US Dollar
Turkish Lira
Danish Krone
Canadian Dollar
Japanese Yen
Hong Kong Dollar
Russian Ruble
New Zealand Dollar
Argentine Peso
Taiwanese Dollar
Euro
Swiss Frank
Korean Won
Chinese Yuan
Saudi Riyal
Indonesian Rupiah
Australian Dollar
Indian Rupee
British Pound
Malaysian Ringgit
Norwegian Krone
Mexican Peso
Brazilian Real
South African Rand

28. Azure Cost Estimator URL

29. Cloud Platform University Online(CPUO) Business-Focused Sessions at Microsoft

30. Demonstration
DEMO!!