DTUs are based on a blended measure of CPU, memory, reads, and writes. As DTUs increase, the power offered by the performance level increases. Azure has different limits on the concurrent connections, memory, IO and CPU usage. Which tier one has to pick really depends upon
- #concurrent users
- Log rate
- IO rate
- CPU usage
- Database size
For example, if you are designing a system where multiple users are reading and there are only a few writers, and if your application middle tier can cache the data as much as possible and only selective queries / application restart hit the database then you may not worry too much about the IO and CPU usage.
If many users are hitting the database at the same time, you may hit the concurrent connection limit and requests will be throttled. If you can control user requests coming to the database in your application then this shouldn't be a problem.
Log rate: Depends upon the volume of the data changes (including additional data pumping in the system). I have seen application steadily pumping the data vs data being pumped all at once. Selecting the right DTU again depends upon how one can do throttling at the application end and get steady rate.
Database size: Basic, standard, and premium has different allowed max sizes, and this is another deciding factor. Using table compression kind of features helps reducing the total size, and hence total IO.
Memory: Tuning the expesnive queries (joins, sorts etc), enabling lock escalation / nolock scans help controlling the memory usage.
The very common mistake people usually do in database systems is scaling up their database instead of tuning the queries and application logic. So testing, monitoring the resources / queries with different DTU limits is the best way of dealing this.
If choose the wrong DTU, don't worry you can always scale up/ down in SQL DB and it is completely online operation
Also unless a strong reason migrate to V12 to get even better performance and features.