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On-Premises to Azure TCO: Full Migration Cost Analysis 2026

๐Ÿ“… May 2026โฑ๏ธ 8 min readโœ๏ธ TCOIQ / Wekams

Microsoft Azure is the top choice for Windows-heavy environments. Azure Hybrid Benefit alone saves 40% on Windows VM costs. This guide covers the complete on-premises to Azure TCO.

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Azure Hybrid Benefit: The Biggest Saving

AHB eliminates OS licencing cost for existing Windows Server/SQL Server licences with Software Assurance. Saves ~40% on Windows VMs. 100-server Windows environment: $30K-$60K/year saving from AHB alone.

On-Prem to Azure Cost Breakdown

50-server example: Current on-prem $155K/year. Azure with 3yr RI + AHB: $72-90K/year. Net saving: $65-83K/year = $195-249K over 3 years.

Azure VM Size Selection

B-series (burstable/dev), D-series v5 (general purpose), E-series (memory/SQL), F-series (compute), M-series (SAP). D2s v5 (2vCPU/8GB): $0.096/hr on-demand, $0.058/hr 3yr RI.

Azure Migrate: Free Assessment Tool

Microsoft Azure Migrate discovers on-premises VMs free. Collects 30-day performance data. TCOIQ imports Azure Migrate reports and extends to 5-cloud comparison.

When Azure Wins vs AWS

Azure best for: Microsoft EA/MSDN licences, Windows Server/SQL Server heavy, M365 integration, regulated industries (MAS TRM, PCI DSS, HIPAA). AWS better for Linux-heavy and cloud-native.

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