Whenever we do the Cloud Discovery then the record(s) in Virtual Machine Instance (cmdb_ci_vm_instance) is/are created and doing IP Discovery against the specific host, post-Cloud Discovery, would create the respective Server CI entry. Now if the VM is terminated from the Cloud then the entry in the Virtual Machine Instance table is updated to RETIRED but the respective Server CI record isn't updated and still shows that the host is functional/alive.

Issue

The above issue causes unnecessary issues with billing by counting the non-existing servers, terminated in the Cloud.

Root Cause

No Process/Flow existing to update the respective Server CI when the Virtual Machine Instance is terminated.