The total cost of ownership (TCO) is calculated over a five-year period. In this model, OpenStack becomes more cost-effective starting at approximately 200 production VMs. As environments continue to scale, the cost advantage typically increases, as additional workloads primarily consume hardware and operational capacity, while licensing, subscription, and cloud consumption costs tend to grow more significantly.
In this calculation, BearingPoint Sovereign Cloud is approximately €1.5 million (around 40%) less expensive than VMware VCF and approximately €320,000 (around 12%) less expensive than Azure.
The cost advantage over Azure is therefore present but considerably smaller than the advantage over VMware VCF. Key factors influencing the outcome include cloud consumption patterns, annual price increases, utilization levels, storage and traffic profiles, and the chosen operating model.