- **Capital and operational costs of Windows File Servers with one or more server endpoints.** Azure File Sync as a replication solution is agnostic of where the Windows File Servers that are synchronized with Azure Files are; they could be hosted on-premises, in an Azure virtual machine, or even in another cloud. The costs for sync servers hosted on-premises or in other cloud providers include both capital and operating costs that aren't tracked as part of your Azure bill, but are still part of the total cost of ownership of the solution. Capital expenses are the upfront hardware costs of your solution. Operating expenses are the ongoing costs of labor, electricity, etc. You should consider the amount of data you need to cache on-premises, the number of CPUs and amount of memory your Windows File Servers need to host Azure File Sync workloads, and other organization-specific costs you might have. For more information, see [recommended system resources](../articles/storage/file-sync/file-sync-planning.md#recommended-system-resources).
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