Non-production Azure VMs are frequently left running during off-hours despite being used only during business hours. When these instances remain active overnight or on weekends, they generate unnecessary compute spend. Azure offers built-in auto-shutdown features that allow teams to define daily stop times, retaining disk data and configurations without paying for VM runtime. Implementing scheduled shutdowns in dev/test environments is a simple, low-risk optimization that can reduce compute costs by 30–60%.

This inefficiency arises when a virtual machine is left in a stopped (deallocated) state for an extended period but continues to incur costs through attached storage and associated resources. These idle VMs are often remnants of retired workloads, temporary environments, or paused projects that were never fully cleaned up. Without clear ownership or automated cleanup, they can persist unnoticed and accumulate avoidable charges.

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