# Underutilized Azure Virtual Machine

Canonical: https://www.pointfive.co/efficiency-hub/inefficiencies/underutilized-azure-virtual-machine

[Cloud Efficiency Hub](https://www.pointfive.co/efficiency-hub) 

# Underutilized Azure Virtual Machine

## Explanation

Azure VMs are frequently provisioned with more vCPU and memory than needed, often based on template defaults or peak demand assumptions. When a VM operates well below its capacity for an extended period, it presents an opportunity to reduce costs through rightsizing. Without regular usage reviews, these inefficiencies can persist indefinitely.

## Relevant Billing Model

Azure VMs are billed based on:

- VM size and family - Larger or more powerful VMs incur higher per-second or per-hour costs

- Uptime - Charged per second, with a minimum of one minute

- Managed disk and network usage

## Detection

- Analyze average CPU and memory utilization of running VM's to determine

- Review whether application requirements justify the current VM size

- Evaluate if the workload would perform similarly on a lower SKU within the same VM series

- Confirm that performance, licensing, or compatibility constraints don't require oversizing

- Validate with stakeholders whether the VM can be resized without impact

## Remediation

Resize the VM to a smaller SKU that aligns with observed usage. For unpredictable workloads, consider implementing VM scale sets or burstable VM types (e.g., B-series). Periodically audit VM sizing as part of environment hygiene.

## Relevant Documentation

[Azure VM Pricing](https://azure.microsoft.com/en-us/pricing/details/virtual-machines/)

[Submit Feedback](https://hub.pointfive.co/inefficiencies/underutilized-azure-virtual-machine)

## At a glance

Reference

CER-0045

Cloud provider

Azure

Service

Azure Virtual Machines

Category

[Compute](https://www.pointfive.co/efficiency-hub/service-category/compute)

Inefficiency type

Overprovisioned Resource

## Contributed by

- Taylor Houck 

### Taylor Houck

Cloud FinOps Specialist @ PointFive

[LinkedIn](https://www.linkedin.com/in/twhouck/)

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Source: the public page above. Product screenshots and illustrative interfaces are examples, not live customer data.