A detailed comparison of the cost of deploying in different models in VS .NET

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A detailed comparison of the cost of deploying in different models
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To get a clear idea of what drives costs in each deployment model, let s study a specific example. Let s run a cost analysis of deployment for each of the models we described in the last section and get a quantitative picture of what makes up the total bill. By looking in detail at where the dollars and cents go, you ll be in a position to understand the kinds of applications for which a cloud model makes the most sense. For our hypothetical example, let s look at a small-scale e-commerce application. For this discussion, let s assume it has been designed as a three-tier system, with a frontend web server, a middle-tier application server, and a back-end database. Because it s a small-scale system, let s assume that one server of each flavor will suffice for handling the web traffic you anticipate receiving; but for reliability reasons, because you wish to minimize downtime, you ll deploy a redundant pair of each infrastructure component (physical or virtual; see figure 3.1). In the non-cloud deployment models, you ll deal with physical infrastructure that you either purchase (in the cases of an internal IT or colocation model) or rent (in the case of the managed-service model). The main hardware components of the system and their approximate purchase costs are as follows:
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2 firewalls: 2 x $1,500 = $3,000 2 load-balancers: 2 x $5,000 = $10,000 6 commodity servers: 6 x $3,000 = $18,000
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For simplicity, let s ignore the various other ancillary pieces of the hardware infrastructure. Let s also assume that you re running using open-source software; we ll ignore the costs of such things as the operating system, the application server, and database software.
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The business case for cloud computing
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Small E-commerce Configuration
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Figure 3.1 For redundancy, the e-commerce example configuration consists of a pair of each functional component required to operate the application. The hardware chosen for the configuration is rack mountable, commodity servers, and network gear. Except for the database, each component is active; the DB is replicated with a hot standby. We chose a LAMP open source stack to simplify the treatment of software costs.
INTERNAL IT DEPLOYMENT
As we discussed in chapter 1, a good way to look at the costs of a specific deployment model is to examine the CAPEX and OPEX components separately. CAPEX is the primary driver for the up-front cost of the application; but for financial planning purposes (cash considerations aside), these costs depreciate over the lifetime of the equipment. OPEX, as you ll see here, are the operational costs related directly to the infrastructure. Generally, there are also operational costs related to the human resources required to maintain and operate the infrastructure. The CAPEX in this internal IT example for your e-commerce application is the cost of the hardware listed earlier: $31,000. Assuming a three-year lifetime for this gear, you can calculate the attributed monthly cost by dividing the total by 36, giving a monthly cost of $861. This is the monthly depreciated cost of the internal IT scenario. Table 3.1 summarizes this example.
Table 3.1 Internal IT cost calculation: assumes the existing data center, power, and bandwidth cost nothing extra Hardware $3,000 + + = = $10,000 $18,000 $31,000 36 $861 Two firewalls Two load-balancers Six servers Total CAPEX cost of hardware Depreciated over three years (36 months) per month
The economics of cloud computing
In the internal IT model, if there is adequate power, cooling, rack space, and bandwidth to house the new gear for the application, there is no additional incremental cost to be taken into account. But note that the boxes in the end do consume power, produce heat, and require bandwidth to do work; you re not getting something for nothing.
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