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Reducing costs with VM optimization

TP - 11.12.2025

Here's something nobody tells you about the cloud: just because high-capacity virtual machines are available doesn’t mean they are the right fit. Most organizations deploy enterprise-grade infrastructure for lightweight workloads and then wonder why their Azure bill continues to climb.


We see this pattern constantly. Companies migrate to Azure, provision VMs with generous specs "just to be safe," and then... forget about them. A year later, they are paying premium prices for resources they are barely using.


The usual suspect: VMs sized for problems that never materialized


During initial deployments, teams err on the side of caution—better to have more than enough capacity than risk performance issues, right? The problem is that workloads rarely behave the way we expect them to. What seemed like a necessary precaution during launch becomes unnecessary overhead a few months later.


The warning signs are usually hiding in plain sight: CPU usage is stuck around 20%, memory is barely utilized, and there are no performance spikes for months on end. These VMs are technically working fine, but they are just not working efficiently. 



Part of it is organizational inertia. Once a VM is running and the application is stable, nobody wants to touch it. "If it ain't broke, don't fix it" is a reasonable philosophy until you realize you are paying more than you need to for that stability.


The other issue? Visibility. Most teams don't have a clear view of how their VMs are actually performing over time. They know things are running, but they don't know if they are running efficiently. Without that data, rightsizing feels risky.


Putting VM optimization into practice


It begins by treating VM optimization as an ongoing practice, not a one-time audit. The organizations should monitor resource utilization over meaningful time periods—long enough to capture seasonal trends and batch workloads. 


You need to be strategic about when and how you resize. Downsizing a VM isn't just about picking a smaller SKU and hoping for the best. It requires verifying compatibility with features like premium storage or accelerated networking, understanding the cost implications, and scheduling changes during low-impact windows.


When done right, the results can be dramatic. A D4s_v3 VM downsized to a B2ms can cut costs with zero performance impact—if the workload actually fits the smaller profile.


Manual rightsizing works, but it doesn't scale. Using AI-driven tools that continuously analyze usage patterns helps predict future demand and flag optimization opportunities before they become budget problems. 


You don’t just cut costs but also build cloud operations that are intentional rather than accidental. Every VM should earn its place. Every dollar spent should be mapped to actual business value.


Unlocking Azure’s potential for smarter, leaner growth


Cloud optimization is about being deliberate. If your Azure bill feels too high, the problem probably isn't Azure—it's that your infrastructure is sized for a version of your workload that doesn't exist anymore.
The good news? Unlike physical data centers, the cloud lets you fix this without ordering new hardware or waiting weeks for procurement. You just need to know where to look and have the confidence to act on what you find.


Don’t underestimate the true power of cloud optimization in cutting costs. It is about aligning infrastructure with actual business needs. By taking a data-driven approach to VM sizing, we have improved efficiency, reduced waste, and reinforced our commitment to smart cloud practices.

At TP, we build in the cloud responsibly by aligning infrastructure with actual business needs. 

As a Microsoft Azure Solutions Partner for Infrastructure, we specialize in secure and efficient Azure deployments, including robust VM management through backups and security enhancements. Our approach integrates data-driven optimization with advanced networking to ensure cost savings without compromising performance or safety.

Let’s take a data-driven approach to VM sizing to improve efficiency, reduce waste, and reinforce our commitment to smart cloud practices.
Visit our technology services page to learn more.

 


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