Cost calculation for online storage service
ASSUMPTIONS
No. of customers 6,000,000
Basic Pro 50 Pro 100
Customer Spread (%) 88% 10% 2%
Storage (GB/user) 5 50 100
Usage Low Medium High
Scenario description Basic Pro50 Pro100
File Size Operations File Size Operations File Size Operations
Low 1 20 5 50 20 100
Medium 5 10 10 20 100 50
High 10 5 50 10 300 20
PRICING STRUCTURE FOR AMAZON
Storage Pricing (per GB) Standard Reduced Data Transfer IN
First 1TB/month 0.140 0.093 All data transfer IN
Next 49TB/month 0.125 0.083
Next 450TB/month 0.110 0.073 Data Transfer OUT
Next 500TB/month 0.095 0.063 Upto 10TB/month
Next 4000TB/month 0.080 0.053 Next 40TB/month
Over 5000TB/month 0.055 0.037 Next 100TB/month
Greater than 150TB/month
COST CALCULATION
Basic Pro50 Pro100 Total Data Transfer IN
Storage consumed (GB/month) 26400000 30000000 12000000 68400000 All data transfer IN
Operation Basic (no/day) 105600000 12000000 2400000 120000000
Operation Complex (no/day) 52800000 6000000 1200000 60000000 Data Transfer OUT
Data OUT (per month) 105600000 120000000 720000000 945600000 Upto 10TB/month
Data IN (per month) 52800000 60000000 360000000 472800000 Next 40TB/month
Next 100TB/month
Storage Cost/month Reduced Usage Cost Greater than 150TB/month
First 1TB/month 0.093 1.00 95.232 Monthly cost
Next 49TB/month 0.083 49.00 4164.608 Annual Cost
Next 450TB/month 0.073 450.00 33638.4
Next 500TB/month 0.063 500.00 32256 Operation
Next 4000TB/month 0.053 4000.00 217088 Basic
Over 5000TB/month 0.037 61796.88 2341360 Complex
Monthly cost 2628602.24 Monthly cost
Annual Cost 31543226.88 Annual cost
RESULTS
VARIABLE COST STRUCTURE REVENUE
Monthly Annual
Storage cost 2,628,602 31,543,227 Basic
File operation cost 21,600 259,200 Pro50
Data Transfer 73,878 886,535 Pro100
Total Costs 2,724,080 32,688,962 Monthly Rev
Avg Cost (per user) 0.45 5.45 Annual Rev
Monthly Annual
PROFIT 5,668,720 68,024,638
Pricing/GB Operation (per 10,000 requests) Pricing
0.010 PUT, COPY, POST, or LIST 0.100
GET, DELETE and others 0.010
Pricing/GB
0.150
0.110
0.090
n 150TB/month 0.080
Data Transfer IN Pricing/GB Usage Cost
All data transfer IN 0.010 472800000 4728000.00
Data Transfer OUT Pricing/GB Usage Cost
Upto 10TB/month 0.150 10.00 1.5
Next 40TB/month 0.110 40.00 4.4
Next 100TB/month 0.090 100.00 9.0
Greater than 150TB/month 0.080 923287.50 73863.0
73,878
886,535
Pricing Cost
0.010 3600
0.100 18000
21600
259200
REVENUE
Rev/month Total
0 0
9.99 5,994,000
19.99 2,398,800
8,392,800
100,713,600