You can configure Server Hardware cost driver and resource utilization parameters to calculate the accurate cost and improve the efficiency of your environment.
Cost Drivers analyze the resources and the performance of your virtual environment. Based on the values you define, Cost Drivers can identify reclamation opportunities and can provide recommendations to reduce wastage of resources and cost.
How to Set Your Depreciation Model and Years for vCenter
- From the left menu, click Configure and then, click Cost Drivers.
- Click Settings.
- Select vCenter as Infrastructure Type from the drop-down menu.
- In Cost Settings - Financial Accounting Model page, select the Depreciation Years between two and five.
- Select the Depreciation Model as per your requirement and click Save.
Editing Cost Ratio for VMware Cloud on AWS, Azure VMware Solution, Google Cloud VMware Engine, Oracle Cloud VMware Solution, and VMware Cloud on Dell EMC
- From the left menu, click Configure and then, click Cost Drivers.
- Click Settings.
- Select the public cloud account of your choice from the Infrastructure Type drop-down menu.
- Select the required organization from the Organization drop-down menu.
- Enter the cost ratio for CPU, Memory, and Storage.
- Enter the Discount percentage.
Note: Discount is applied only when billing is deactivated on VMC on AWS/ Azure VMware Solution/ VMware Cloud on Dell EMC/ Google Cloud VMware Engine/ Oracle Cloud VMware Solution adapter and it is applied on the reference cost (list price) per hour applicable for that region.
- Select the Region and click Save.
Note: This value is considered when VMware Cloud vCenters are configured to VMware Aria Operations using vCenter adapters only.
The default discount % value is zero. You can set or edit the discount % for all the organizations in any of your VMware Cloud environments or you can set or edit the discount % for specific organization in any of your VMware Cloud environments. You can run cost calculation and check whether the discount % is reflected in the Monthly CPU Base Rate, Monthly Memory Base Rate, and Monthly Storage Base Rate metrics.
Configuring Depreciation Preferences
Method | Calculation |
---|---|
Straight line | Yearly straight line depreciation = [(original cost - accumulated depreciation) / number of remaining depreciation years] |
Max of Double or Straight | Yearly max of Double or Straight = Maximum (yearly depreciation of double declining balance method, yearly depreciation of straight line method)
Depreciation rate = 2 / number of depreciation years.
Note:
Double declining depreciation for the last year = original cost - accumulated depreciation
|
Example for Straight Line Depreciation Method
Year | Original Cost | Accumulated Depreciation | Straight Line Depreciation Cost |
---|---|---|---|
Year 1 | 10000 | 0 | [(10000-0)/5] = 2000 |
Year 2 | 10000 | 2000 | [(10000-2000)/4] = 2000 |
Year 3 | 10000 | 4000 | [(10000-2000)/3] = 2000 |
Year 4 | 10000 | 6000 | [(10000-2000)/2] = 2000 |
Year 5 | 10000 | 8000 | [(10000-2000)/1] = 2000 |
Example for Max of Double and Straight Line Depreciation Method
Year | Original Cost | Depreciation Rate | Accumulated Depreciation | Straight Line Depreciation Cost |
---|---|---|---|---|
Year 1 | 10000 | 0.4 | 0 | Maximum([(10000-0)*0.4],[(10000-0)/5]) = Maximum(4000, 2000) = 4000which is 333.33 per month. |
Year 2 | 10000 | 0.4 | 4000 | Maximum([(10000-4000)*0.4],[(10000-4000)/4]) = Maximum (2400, 1500) = 2400which is 200 per month. |
Year 3 | 10000 | 0.4 | 6400 | Maximum([(10000-6400)*0.4],[(10000-6400)/3]) = Maximum (1440, 1200) = 1440which is 120 per month. |
Year 4 | 10000 | 0.4 | 7840 | Maximum([(10000-7840)*0.4],[(10000-7840)/2]) = Maximum (864, 1080) = 1080which is 90 per month. |
Year 5 | 10000 | 0.4 | 8920 | Maximum([(10000-8920)*0.4],[(10000-8920)/1]) = Maximum (432, 1080) = 1080which is 90 per month. |