Understanding CPU, RAM and Storage for Cloud Server Performance

Why Specification Order Matters for Accounting Software

Cloud server marketing emphasises CPU and RAM because these numbers are easy to compare. For accounting software workloads, the performance priority order is different: storage type (NVMe vs SATA) → RAM amount and type (dedicated vs burstable) → CPU core count and type. Most businesses focus on the last item in this list and overlook the first, which has the greatest impact on their day-to-day experience.

Storage: The Biggest Performance Factor for Tally/Busy

Accounting database operations are dominated by small random reads and writes — thousands per user session. The storage specification that captures this is Random IOPS (Input/Output Operations Per Second):

• NVMe SSD: 300,000–700,000 random IOPS — every database operation completes immediately
• SATA SSD: 50,000–80,000 random IOPS — creates queuing at 3+ concurrent users
• HDD: 80–200 random IOPS — completely unsuitable for multi-user accounting

Moving from SATA to NVMe on equivalent hardware reduces Tally report generation time by 60–80% and eliminates the keyrboard lag that appears at 3+ users on SATA. This is the single most impactful specification for accounting software users.

RAM: Determines Concurrent User Capacity

Each concurrent Tally or Busy session requires approximately 2 GB of RAM: the Windows user session, the application process, and the open company database. The server also needs 4 GB baseline for the OS and background services.

RAM sizing for common configurations:

RAM must be dedicated — not burstable. Burstable RAM provides a guaranteed minimum (insufficient for peak load) and allows bursting up to a higher figure when available. Under concurrent load during GST filing, burstable RAM degrades exactly when it is most needed.

CPU: Baseline Requirement, Not the Primary Bottleneck

Tally and Busy are not CPU-intensive under normal accounting operations. CPU becomes relevant during: GSTR-2A/2B reconciliation on very large datasets, year-end processing with heavy calculations, and multiple concurrent users all generating large reports simultaneously.

Guideline: 1 dedicated vCore per 2–3 concurrent users, plus 2 baseline cores. For 10 users: 6–7 vCores minimum. Dedicated (not shared/burstable) CPU allocation ensures these cores are available during peak periods.

Reading a VPS Specification Correctly

When evaluating a VPS plan for accounting software, check these five specifications in this order:

1. "NVMe SSD" — must say this explicitly. "SSD" or "High-performance SSD" without NVMe means SATA.
2. "Dedicated RAM" — must say dedicated. "Up to X GB" means burstable.
3. "Dedicated vCores" — must say dedicated. "vCPU" alone does not specify dedicated.
4. RAM amount — calculate from concurrent users × 2 GB + 4 GB baseline + 2 GB headroom.
5. Data centre location — must be a specific Indian city.

Frequently Asked Questions