Gartner Research

Calculating per-VM Costs in the Data Center

Published: 09 March 2016

ID: G00297304

Analyst(s): Nik Simpson


Many organizations are interested in implementing chargeback or showback for virtual machines hosted in the data center, or in comparing internal costs with public IaaS clouds. This document describes a sample cost model to calculate a granular per-VM cost based on resource consumption.

Table Of Contents

The Gartner Approach

The Guidance Framework

  • Prework
  • Virtual Infrastructure Configuration
  • Building the Cost Model
    • Set Constant Values
    • Data Center Space
    • Calculate Software Costs
    • Calculate CPU and Memory Costs
    • Calculate Storage Costs
    • Calculate Network Costs
    • Modelling Hyperconverged Infrastructure
    • Sample VM Catalog Configurations
  • Follow-Up

Risks and Pitfalls

  • Risk: Inadequate Cost Data
  • Risk: Difficulty in Apportioning Shared Costs
  • Risk: Variable Costs
  • Pitfall: Expecting Perfect Accuracy
  • Pitfall: Failure to Maintain the Model

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