We were moving a project from AWS to our co-located DC. We have setup KVMs scheduled by Cloudstack for each of the component in the architecture. The KVMs used local storage. The VMs are provisioned with more than required resources because we have the opinion that in our DC scaling during peak load and then downscaling doesn't offer much benefits financially as we are anyways paying for the hardware in advance and its also powered on. Its going to be idle if not used. Now we found something interesting our latency in co-located DC was 2 times more than in AWS. The time for first byte at our load balancer in aws was 60ms average and at our DC was 112ms. We started our debugging mission, Mission Conquer-AWS. All the servers are newer Dell hardwares. So the initially intuition was virtualisation is causing the issue. Conversation with the Hypervisor We started with CPU optimisation, we started using the host-passthrough mode of CPU in libvirt so VMs dont see QEMU emulated CPUs,