Reference Based Costing for Azure VMware Solution and Google Cloud VMware Engine

IT teams spend on purchasing infrastructure from Azure VMware Solution (AVS) and Google Cloud VMware Engine (GCVE). Now you can transfer these expenses (CPU, Memory, and Storage) to the application teams using reference-based cost allocation. The cost allocation mechanism lets you view the expenses related to the CPU, memory, and storage for a single virtual machine (VM), this helps you to determine the overall cost associated with your cloud infrastructure.

To use the Reference Costing feature, you must set the Billing Enable option in Advance Settings section of a VMC adapter to false.

Reference Based Costing - Points to Remember

• The bill expenses or reference-based costs are divided into CPU : memory : storage ratios, you can edit ratio,region, and discount from the Cost Settings for Financial Accounting Model topic.
• The bill expenses or reference-based costs are allocated to clusters based on the region to which the cluster belongs.

The following are some important points to consider when you select reference-based costing.

• When you have some unconfigured private clouds in the organization, vRealize Operations might not list all the hosts in the organization.
• Ability to carry out workload planning with VMware Cloud on AWS as the destination cloud using the new calculated base rates, based on your bills.
• For reference-based costing, we consider the Host as Production host and host type as On Demand and get the base rates for cost Allocation. Even if the host type is Subscription based, we still do costing treating it as On Demand Host Type.