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Cloud Efficiency Hub

Underutilized GCP VM Instance

The short version

GCP VM instances are often provisioned with more CPU or memory than needed, especially when using custom machine types or legacy templates.

PointFive Research

Cloud cost research at PointFive

Category
Compute
Reference
CER-0048
Type
Overprovisioned Resource

Explanation

Why the waste happens and who it affects.

If an instance consistently consumes only a small portion of its allocated resources, it likely represents an opportunity to reduce costs through rightsizing. Without proactive reviews, these oversized instances can remain unnoticed and continue to incur unnecessary charges.

Billing model

The pricing dimensions that drive this cost.

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

How to detect

5 checks to find it in your estate.

  • 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

How to fix

How to remove the waste.

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.

Documentation

Vendor references for pricing and configuration.