Skip to main content

Description

Identify Azure Virtual Machines that are potentially underutilized and rightsize (downsize) them to optimize cloud expenditure. When a linked New Relic host is available, this policy also evaluates memory utilization. Otherwise, it falls back to CPU metrics only. A VM is classified as underutilized if, over a 14-day period, its average CPU utilization remains below 40% and its maximum CPU utilization does not exceed 50%, with memory utilization below 40% when New Relic data is available. Persistently underutilized VMs indicate over-provisioning, leading to inefficient resource usage and elevated operational costs.

Rationale​

Detecting and addressing underutilized VMs is a key cost optimization strategy in cloud environments. By rightsizing or decommissioning over-provisioned VMs, you can reduce unnecessary spending, improve overall resource utilization, and reallocate compute capacity to higher-priority workloads.

Impact​

Downsizing actions must be carefully evaluated to avoid negatively impacting performance, particularly for workloads that may experience occasional bursts or are stateful in nature.

Audit​

This policy evaluates an Azure Virtual Machine over the last 14 days using CPU metrics and optional New Relic memory metrics, while excluding VMs already classified by the Azure Virtual Machine is idle policy.

Memory is evaluated as follows:

  • If New Relic Host is present, use New Relic Host: Memory Used, 14-Day.
  • If New Relic Host is empty, fall back to CPU only.

The VM is marked as INCOMPLIANT when all of these baseline conditions are true:

  • Monitor: CPU Average, 14-Day is less than 40%.
  • Monitor: CPU Max, 14-Day is less than 50%.

And this metric path applies if exists:

  • New Relic Host is present and New Relic Host: Memory Used, 14-Day is less than 40%.

A VM is marked as INAPPLICABLE under any of the following conditions:

  • The VM is not currently in a running state.
  • The VM has been active for less than 14 days.
  • The VM is categorized as idle by the Azure Virtual Machine is idle policy.

The VM is marked as UNDETERMINED if either required CPU metric is empty, or if New Relic Host is present but New Relic Host: Memory Used, 14-Day is empty.