This hits so close to home. I once tried to explain to a manager that a server at 60% utilization had zero room left, and they looked at me like I had two heads. I wish I had this article back then!
Up to a hair over 60% utilization the queuing delays on any work queue remain essentially negligible. At 70 they become noticeable, and at 80% they've doubled. And then it just turns into a shitshow from there on.
The rule of thumb is 60% is zero, and 80% is the inflection point where delays go exponential.
The biggest cluster I ran, we hit about 65% CPU at our target P95 time, which is pretty much right on the theoretical mark.
The biggest problem was not variance in request rate it was variance in request cost, which is usually where queuing kicks in, unless you're being dumb about things. I think for a lot of apps p98 is probably a better metric to chase, p99 and p100 are useful for understanding your application better, but I'm not sure you want your bosses to fixate on them.
But our contracts were for p95, which was fortunate given the workload, or at least whoever made the contracts got good advice from the engineering team.
I really should have a favorite couple of links or books but unfortunately I do not. I will put that on my todo list.
The magic search terms are “queue size/length”, “utilization”.