Cloud Computing

Right-Sizing

Definition

Right-sizing is the process of matching instance types and sizes to your workload performance and capacity requirements at the lowest possible cost. It is a key part of cloud cost optimization.

Why It Matters

One of the most common sources of wasted cloud spending is paying for oversized and underutilized resources. Right-sizing ensures that you are not paying for capacity you don't need, which can lead to significant cost savings.

Contextual Example

A monitoring tool shows that a database server is consistently using only 15% of its CPU capacity. A FinOps team would right-size this server by moving it to a smaller, cheaper instance type, saving money without impacting performance.

Common Misunderstandings

  • Right-sizing is a continuous process, not a one-time event, as workloads can change over time.
  • Cloud providers and third-party tools offer recommendations to help identify right-sizing opportunities.

Related Terms

Last Updated: December 17, 2025