The traditional method of calculating database costs (software + hardware) is outdated. In the cloud era, there are more factors to consider such as scaling costs, integration with existing and future systems, and downtime costs. When pricing a cloud database, it's crucial to ask questions about hard costs (software license and hardware), operational costs (disaster recovery, scale, and integration), and soft costs (compliance, competitive risk, vendor lock-in, and talent attraction). These costs fall into three main categories: hard costs, operational costs, and soft costs.