Examine Oracle recommendations
In accordance with the SAP installation manual, Oracle-related files shouldn't be installed or located on the system drive hosting the OS. Virtual machines of varying sizes support different numbers of attached disks.
If you have smaller virtual machines, we recommend installing/locating Oracle home, stage, saptrace, saparch, sapbackup, sapcheck, or sapreorg on the OS disk. These parts of Oracle DBMS components aren't intense on I/O and I/O throughput. This means that the OS disk can handle the I/O requirements. The default size of the OS disk is 127 GB.
If there isn't enough free space available, the disk can be resized to 2048 GB. Oracle Database and redo log files need to be stored on separate data disks. There's an exception for the Oracle temporary tablespace. Tempfiles can be created on D:\ (non-persistent drive). The non-persistent D:\ drive also offers better I/O latency and throughput (except for A-Series virtual machines). To determine the right amount of space for the tempfiles, you can check the sizes of the tempfiles on existing systems.
Only single-instance Oracle using NTFS formatted disks is supported. All database files must be stored on the NTFS file system on managed (recommended) or on unmanaged disks. Microsoft strongly recommends using Azure Managed Disks with Premium SSD storage for your Oracle Database deployments. Network drives or remote shares like Azure file services aren't supported for Oracle Database files.