From the course: Google Cloud Digital Leader Cert Prep: 1 Digital Transformation with Google Cloud

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Total cost of ownership (TCO)

Total cost of ownership (TCO) - Google Cloud Platform Tutorial

From the course: Google Cloud Digital Leader Cert Prep: 1 Digital Transformation with Google Cloud

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Total cost of ownership (TCO)

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Organizations often perform a cloud total cost of ownership analysis or TCO analysis when they are considering moving to the cloud. This analysis aims to weigh the cost of cloud adoption against the cost of running their current on-premises systems. For on-premises, TCO is associated with assessing the cost of static resources throughout their lifetime. However, due to the dynamic nature of the cloud, predicting future costs can be challenging. A common mistake that organizations make when attempting to calculate cloud TCO is to directly compare the running costs of the cloud against their on-premises system. These costs are not equivalent. The cost of on-premises infrastructure is dominated by the initial purchase of hardware and software, but cloud computing costs are based on monthly subscriptions or pay per use models. It's also important to consider all of the operational costs of running your own data center, such as power, cooling, maintenance, and other support services. A…

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