# Underutilized Azure virtual machine | Cloud Efficiency Hub

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

Azure VMs are frequently provisioned with more vCPU and memory than needed, often based on template defaults or peak demand assumptions.

By: Taylor Houck

Updated: 2026-09-28

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

# Underutilized Azure Virtual Machine

The short version

Azure VMs are frequently provisioned with more vCPU and memory than needed, often based on template defaults or peak demand assumptions.

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

Cloud FinOps Specialist @ PointFive

Azure service

[Azure Virtual Machines](https://www.pointfive.co/efficiency-hub/cloud-services/azure-virtual-machines)

Category

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

Reference

CER-0045

Type

Overprovisioned Resource

## Explanation

Why the waste happens and who it affects.

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.

## Billing model

The pricing dimensions that drive this cost.

Azure VMs are billed based on:

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

- Uptime - Charged for the number of full minutes the VM runs; extra seconds are not billed

- Managed disk and network usage

## How to detect

5 checks to find it in your estate.

- 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

## How to fix

How to remove the waste.

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.

## Documentation

Vendor references for pricing and configuration.

- [Pricing - Linux Virtual Machines  azure.microsoft.com](https://azure.microsoft.com/en-us/pricing/details/virtual-machines/linux/)

- [Resize a virtual machine  learn.microsoft.com](https://learn.microsoft.com/en-us/azure/virtual-machines/sizes/resize-vm)

## Related inefficiencies

[Browse the library](https://www.pointfive.co/efficiency-hub)

- Azure Virtual Machines  CER-0289

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### [Suboptimal Architecture Selection for Azure Virtual Machines](https://www.pointfive.co/efficiency-hub/inefficiencies/suboptimal-architecture-selection-for-azure-virtual-machines)

Azure offers x86-64 VMs (Intel and AMD) and Arm64 VMs (Ampere Altra and Azure Cobalt 100), but default provisioning often leans toward Intel-based SKUs due to inertia or pre-configured templates. AMD and ARM alternatives offer lower list...

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