# Underutilized GCP VM instance | Cloud Efficiency Hub Canonical: https://www.pointfive.co/efficiency-hub/inefficiencies/underutilized-gcp-vm-instance GCP VM instances are often provisioned with more CPU or memory than needed, especially when using custom machine types or legacy templates. By: PointFive Updated: 2026-09-28 [Cloud Efficiency Hub](https://www.pointfive.co/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 GCP service [GCP Compute Engine](https://www.pointfive.co/efficiency-hub/cloud-services/gcp-compute-engine) Category [Compute](https://www.pointfive.co/efficiency-hub/service-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. - [VM instance pricing cloud.google.com](https://cloud.google.com/compute/vm-instance-pricing) - [Apply machine type recommendations to VM instances docs.cloud.google.com](https://docs.cloud.google.com/compute/docs/instances/apply-machine-type-recommendations-for-instances) ## Related inefficiencies [Browse the library](https://www.pointfive.co/efficiency-hub) - GCP Compute Engine CER-0282 ### [Missed Use of Committed Use Discounts for Compute Engine](https://www.pointfive.co/efficiency-hub/inefficiencies/missed-use-of-committed-use-discounts-for-compute-engine) Workloads with predictable, long-running compute usage continue to run entirely on on-demand pricing instead of leveraging Committed Use Discounts. For stable environments, such as production services or continuously running batch... Compute - GCP Compute Engine CER-0089 ### [Underutilized VM Commitments Due to Architectural Drift](https://www.pointfive.co/efficiency-hub/inefficiencies/underutilized-vm-commitments-due-to-architectural-drift) VM-based Committed Use Discounts in GCP offer cost savings for predictable workloads, but they are rigid: they apply only to specified VM types, quantities, and regions. When organizations evolve their architecture - such as moving to GKE... Compute - GCP Compute Engine CER-0095 ### [Missing Scheduled Shutdown for Non-Production Compute Engine Instances](https://www.pointfive.co/efficiency-hub/inefficiencies/missing-scheduled-shutdown-for-non-production-compute-engine-instances) Development and test environments on Compute Engine are commonly provisioned and left running around the clock, even if only used during business hours. This results in wasteful spend on compute time that could be eliminated by scheduling... Compute --- Source: the public page above. Product screenshots and illustrative interfaces are examples, not live customer data.