Explanation:

Box 1: The Azure Total Cost of Ownership (TCO) Calculator
The Total Cost of Ownership (TCO) Calculator estimates the cost savings you can realize by migrating your workloads to Azure.
Note: The TCO Calculator recommends a set of equivalent services in Azure that will support your applications. Our analysis will show each cost area with an estimate of your on-premises spend versus your spend in Azure. There are several cost categories that either decrease or go away completely when you move workloads to the cloud.
Box 2: Azure Hybrid Benefit
Azure Hybrid Benefit is a licensing benefit that helps you to significantly reduce the costs of running your workloads in the cloud. It works by letting you use your on-premises Software Assurance-enabled Windows Server and SQL Server licenses on Azure. And now, this benefit applies to RedHat and SUSE Linux subscriptions, too.
Scenario:
Litware identifies the following security and compliance requirements:
* Once App1 is migrated to Azure, you must ensure that new data can be written to the app, and the modification of new and existing data is prevented for a period of three years.
* On-premises users and services must be able to access the Azure Storage account that will host the data in App1.
* Access to the public endpoint of the Azure Storage account that will host the App1 data must be prevented.
* All Azure SQL databases in the production environment must have Transparent Data Encryption (TDE) enabled.
* App1 must not share physical hardware with other workloads.
Reference:
https://azure.microsoft.com/en-us/pricing/tco/
https://azure.microsoft.com/en-us/pricing/hybrid-benefit/