Partial Cost Recovery Clause Samples

Partial Cost Recovery. An IT organization has a $5000 host with five virtual machines all operating at about the same performance across all resources. Those resources are taking up about 25 percent of the overall host's utilization. The cost for each VM in this scenario is $250, based on 25 percent of $5000 divided evenly across five VMs, since all VM utilization is identical. The next month, IT adds five virtual machines bringing the total to ten. The host's overall utilization is now 50 percent. The cost for each VM would be $250, based on 50 percent utilization of $5000 divided evenly across ten VMs, since all VM utilization is identical. In this example the costs of the five VMs comes out to $250 per VM at the end of first month based on the overall even usage and the load on the server hosting the VMs. When the additional VMs are added for the second month, the costs come out to $250 per VM at the end of that month based on the overall even usage of the VMs and the increased usage of resources on the server. The costs for the first month remain at $250 per VM for the five VMs that were used in that month. These costs are not spread back out over the five VMs added in the second month. These costs were calculated based on the VM usage and server template assignment at that time.