Chapter 17

Cost Model Calculation

This chapter shows how to establish a cost framework based on business revenue projections or forecasting. The case study is about a leading web portal company serving the real estate business. The estimated cost is the static and linear NPV value. This analysis method can be considered a tactical or stack layer-based analysis.

Keywords

Business profile; E2E cost framework; workload; assumptions; hypervisor; growth rate; static NPV; present value (PV); Elastic Compute Cloud (EC2); Simple Storage Service (S3); middleware; disaster recovery (DR); internal return rate (IRR); physical to virtual (P2V); capex; opex

In this chapter, we will unveil a case study that shows how to calculate the cost details based on the theory ...

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