for the application operating environment need to be  known and calculated as a part of the overall costs.  Chapter 3: Diving into Cloud Economics 31 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. 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 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.  ✓  64 virtual central processing  units (CPUs)  ✓  96 gigabytes (GB) of memory  ✓  9,600 GB of storage ✓ 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. The reserved capacity package These materials are the copyright of John Wiley & Sons, Inc. and any  dissemination, distribution, or unauthorized use is strictly prohibited.