ISTCL currently supports 10,000 active users and expects traffic to surge to 80,000 concurrent users. The legacy on-premises system already suffers…

ISTCL currently supports 10,000 active users and expects traffic to surge to 80,000 concurrent users. The legacy on-premises system already suffers from severe performance degradation and latency during peak hours. The engineering team proposes migrating to a scalable cloud architecture, but executive management denies cloud migration due to budget constraints and data sovereignty policies. What solution should be proposed, and why?