vRealize Operations calculates the base rates of CPU and memory so that they can be used for the virtual machine cost computation. Base rates are determined for each cluster, which are homogeneous provisioning groups. As a result, base rates might change across clusters, but are the same within a cluster.

1. vRealize Operations first arrives at the fully loaded cost of the cluster from the cost drivers. After the cost of a cluster is determined, this cost is split into CPU and memory costs based on the industry standard cost ratios for the different models of the server.
2. The CPU base rate is first computed by dividing the CPU cost of the cluster by the CPU capacity of the cluster. CPU base rate is then prorated by dividing the CPU base rate by expected CPU use percentage to arrive at a true base rate for charging the virtual machines.
3. The memory base rate is first computed by dividing the memory cost of the cluster by the memory capacity of the cluster. Memory base rate is then prorated by dividing the memory base rate by expected memory use percentage to arrive at true base rate for charging the virtual machines.
4. You can either provide the expected CPU and memory use or you can use the actual CPU and memory usage values.
Cluster Cost Elements Calculation
Total Compute Cost

Total Compute Cost = (Total Infrastructure cost, which is a sum of all cost drivers) – (Storage cost) – (Direct VM cost, which is sum of OS labor, VM labor and any Windows Desktop licenses).

Expected CPU and Memory use Expected CPU and Memory use = These percentages are arrived based on historical actual use of clusters.
Per GHz CPU base rate Per GHz CPU base rate = (Cost attributed to CPU out of Total compute cost) / (Expected CPU Utilization * Cluster CPU Capacity in gHZ).
Per GB RAM base rate Per GB RAM base rate = (Cost attributed to RAM out of Total compute cost) / (Expected Memory Utilization * Cluster RAM Capacity in GB).
Average CPU Utilization Average CPU Utilization = (Cost attributed to CPU utilization of VMs in a cluster, out of Total compute cost) / (Total number of VMs in the cluster).
Average Memory Utilization Average Memory Utilization = (Cost attributed to Memory utilization of VMs in a cluster, out of Total compute cost) / (Total number of VMs in the cluster).
Expected CPU Utilization The utilization percentage level of CPU that the cluster is expected to operate.
Note:

When you select actual utilization as the cost calculation mode, the cost engine by default rounds off the actual utilization value in multiples of five or to the nearest value.

Expected Memory Utilization The utilization percentage level of Memory that the cluster is expected to operate.
Note:

When you select actual utilization as the cost calculation mode, the cost engine by default rounds off the actual utilization value in multiples of five or to the nearest value.