Question 1
IntermediateFundamentals of Cloud Migrations · TCO analysis
A Global Retail Corporation is planning to migrate its legacy on-premises ERP system to Oracle Cloud Infrastructure (OCI). The CIO has mandated a comprehensive Total Cost of Ownership (TCO) analysis before approval. The current environment consists of 50 physical servers with varying utilization levels. As a Migration Architect, which factor would most significantly lower the projected TCO in OCI compared to the on-premises lift-and-shift approach, and how should you quantify it in the planning phase?
Answer and explanation
Correct answer: B
In a physical on-premises environment, resources are often over-provisioned to handle peak loads. A significant TCO reduction in Cloud comes from 'Right-sizing'—mapping workloads to OCI instances that match actual usage (CPU/RAM 95th percentile) rather than the physical hardware specs. This should be quantified using discovery tools to measure historical utilization.
