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 analyzes 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.
The MTD CPU Cost, MTD Memory Cost, MTD Storage Cost, VM Direct Cost metrics have been deprecated since vRealize Operations Manager .The corresponding metrics to refer instead of these metrics would be the daily cost metrics.
How to Set Your Depreciation Model
You can set your deprecation model using the following steps.
- Click Administration and in the left pane, click Configuration > Cost Settings.
- Click the gear icon next to Cost Settings.
- 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.
Configuring Depreciation Preferences
To compute the amortized cost of the Server Hardware cost driver, you can configure the depreciation method and the depreciation period. Cost Drivers supports two yearly depreciation methods and you can set the depreciation period from two to five years.
Note: Cost Drivers calculates the yearly depreciation values and then divides the value by 12 to arrive at the monthly depreciation.
|Max of Double or Straight||
Example for Straight Line Depreciation Method
|Year||Original Cost||Accumulated Depreciation||Straight Line Depreciation Cost|
[(10000-0)/5] = 2000
[(10000-2000)/4] = 2000
[(10000-2000)/3] = 2000
[(10000-2000)/2] = 2000
[(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|
Maximum([(10000-0)*0.4],[(10000-0)/5]) = Maximum(4000, 2000) = 4000which is 333.33 per month.
Maximum([(10000-4000)*0.4],[(10000-4000)/4]) = Maximum (2400, 1500) = 2400which is 200 per month.
Maximum([(10000-6400)*0.4],[(10000-6400)/3]) = Maximum (1440, 1200) = 1440which is 120 per month.
Maximum([(10000-7840)*0.4],[(10000-7840)/2]) = Maximum (864, 1080) = 1080which is 90 per month.
Maximum([(10000-8920)*0.4],[(10000-8920)/1]) = Maximum (432, 1080) = 1080which is 90 per month.