Sovereign Cloud Premium Analyzer

Quantify the trade-off between sovereign cloud markups and the compliance risks they eliminate. Enter your baseline commercial cloud spend, the quoted uplift for sovereign regions, and annual compliance savings to see the incremental cost, break-even savings target, and multi-year NPV using your chosen term and discount rate.

Aggregate the workloads expected to move to the sovereign region before uplift.
Percent markup quoted for sovereign regions versus commercial cloud.
Estimate audit, legal, and incident-response savings from eliminating data residency gaps.
Defaults to 3 years when blank to match common contract horizons.
Defaults to 6%. Use your weighted average cost of capital for precise NPV work.

Validate pricing schedules, contract escalators, and compliance remediation costs with your finance and legal teams before committing to a sovereign migration.

Examples

  • $3,500,000 baseline spend, 18% uplift, $600,000 savings, 5-year term, 7% discount ⇒ Annual sovereign premium: $630,000.00 USD (18.00% of baseline) • Annual compliance savings offset: $600,000.00 USD • Net annual cost: $30,000.00 USD • Break-even savings required: $630,000.00 USD/year • 5-year NPV at 7.00% discount rate: $123,005.92 USD (cost)
  • $1,200,000 baseline spend, 12% uplift, $150,000 savings, term blank (defaults to 3), discount blank (defaults to 6) ⇒ Annual sovereign premium: $144,000.00 USD (12.00% of baseline) • Annual compliance savings offset: $150,000.00 USD • Net annual savings: $6,000.00 USD • Break-even savings required: $144,000.00 USD/year • 3-year NPV at 6.00% discount rate: $16,038.07 USD (savings)

FAQ

Can I include migration one-time costs?

Yes—add them to the net annual cost separately or treat them as part of compliance savings if migration eliminates future remediation spend.

How should I handle partial workload migrations?

Scale the baseline spend to only the workloads that must move to sovereign infrastructure so the premium aligns with the scoped migration.

What if the sovereign region charges a fixed platform fee?

Convert the platform fee into an annual dollar amount and add it to the baseline spend before applying the uplift percentage.

Does the calculator include FX volatility?

No. Layer in hedging costs or currency adjustments separately if the sovereign region bills in a different currency.

Additional Information

  • Premium impact is expressed annually so finance teams can compare against run-rate audit and staffing savings.
  • The net present value calculation treats savings and premium as a level annual cash flow across the selected term.
  • Break-even savings equal the premium uplift; if compliance savings exceed this figure, the sovereign move creates net benefit.

Related calculators