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for the application operating environment need to be known and calculated as a part of the overall costs. 

✓ Support personnel costs:  What are your costs for staff support for day-to-day operations and management of this application? Will some of these costs be transferred to the cloud provider? Your own personnel will still be required to manage and monitor your cloud services in concert with your data center services. 

✓ Infrastructure software costs:  A whole set of infrastructure management software is in use in any installation in the data center and in a hybrid environment. Needless to say, associated costs are involved. For example, management software is typically used across a variety of data center applications and services. It is typically difficult to separate costs that may be applied to a hybrid cloud environment. 

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Reserved capacity is a part of many cloud initiatives. A reserved capacity package  is a pool of virtual machine resources, which helps ensure resources are available when you need them. You commit to a cer- tain period of time, such as 6 or 12 months, and can provision and de- provision virtual machines within your pool during that time. A pool has one or more units of capacity. For example, one unit may include 

 ✓ 64 virtual central processing units (CPUs) 

 ✓ 96 gigabytes (GB) of memory 

 ✓ 9,600 GB of storage 

Some of these costs aren’t likely to be affected by migrating a single application to the cloud. However, if you move multiple applications to the cloud, you may realize a significant decrease in many of these indirect costs. 

## The reserved capacity package 

The great thing about reserved capacity is that you pay a monthly fee for the reservation, and then pay a discounted rate only for the virtual machines you provision within the pool. You aren’t locked into a set fee for the entire pool of virtual machines over the course of the reservation. 

If you don’t need reserve capacity, you can simply pay as you go for virtual machines you provision. But without a reservation, you aren’t guaranteed capacity. 

