You can now use the allocation model to compute the cost of clusters in vRealize Operations Cloud, earlier the cluster cost computation was based on the cluster utilization. When you perform cost computation using the allocation model, you can set the over commit ratio for CPU, RAM, and storage.
Note: The allocation ratio can be set at both cluster level and datastore cluster level. You can also mention the storage base rate, which will displayed at the datastore level.
Base Rate  Formula 

vCPU Base Rate  vCPU base rate = B1 = (Cost attributed to CPU) / (Number of vCPUs in a cluster) 
RAM Base Rate  RAM base rate = B2 = (Cost attributed to RAM) / Number of vRAMs in a cluster)
Note: The cost computation is based on Over Commit ratio. If the Over Commit ratio is 1:4, and total cores in cluster are 6, then vCPU count = 24, in case if the allocated vCPU exceeds this targeted number, then the maximum value is selected.

Cost  Formula 

Virtual Machine Cost  Virtual machine cost = (Number of vCPU allocated x B1 of cluster it belongs to) + Number of vRAMs allocated x B2 of cluster it belongs to) + storage cost + direct cost.
Note: Storage allocated represents the Storage Base Rate based on allocation.
