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Underutilized GCP VM Instance

Compute

Cloud Provider

GCP

Service Name

Compute Engine

Inefficiency Type

Overprovisioned Resource

Explanation

GCP VM instances are often provisioned with more CPU or memory than needed, especially when using custom machine types or legacy templates. If an instance consistently consumes only a small portion of its allocated resources, it represents an opportunity to reduce costs through rightsizing. Without proactive reviews, these oversized instances can remain unnoticed and continue to incur unnecessary charges.

Relevant Billing Model

Compute Engine VM instances are billed based on:

Machine type and configuration — cost scales with the number of vCPUs, memory, and any premium features (e.g., GPUs, local SSDs)
Uptime — charged per second, with a one‑minute minimum
Persistent disk and network usage

Detection

Analyze average CPU and memory utilization of running Compute Engine instance
Determine whether actual usage justifies the current machine type or custom configuration
Review whether the workload could be met using a smaller predefined or custom machine type
Check for constraints such as licensing, startup latency, or performance overhead that may require overprovisioning
Validate with application or infrastructure teams whether the instance can be resized without impact

Remediation

Resize the instance to a smaller predefined or custom machine type that better aligns with observed usage. For elastic workloads, consider deploying managed instance groups with autoscaling. Periodically review usage patterns to ensure continued alignment with resource needs.

Relevant Documentation

GCP Compute Engine Pricing