Total cost of ownership (TCO) may sound as if it should be a simple and easy-to-use comparison for organizations when they are selecting a cloud provider. But cloud providers have different strengths and weaknesses and operate in different ways, which makes a singular metric such as TCO difficult to apply. However, understanding and prioritizing the elements of any TCO and applying these to the cloud providers in a sequenced order will help organizations obtain a clearer perspective as they compare cloud providers.

The resource package performance-to-price ratio should show that increased use increases the TCO benefits. A recent study showed that compared to on-premises, the TCO advantage of the cloud increases as it is scaled up for Oracle applications deployed on OCI.

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