Committed Use Discounts - GCP Cost Management

Committed Use Discounts (CUDs) is a cost-saving solution provided by Google Cloud. Users can enjoy significant discounts by purchasing a 1-year or 3-year committed use contract. This is ideal for stable and predictable resource requirements. This article explains the Compute Engine committed use discounts in detail, covering different discount types, eligibility criteria, and actual application scenarios.

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Resource-based Committed Use Discounts

Resource CUDs are for when you commit to using a minimum amount of resources within a specific area or project. This type of discount is suitable for stable resource needs, such as:

• vCPUs
• Memory
• GPU
• Local SSD
• Sole-tenant nodes
• Operating System (OS) Authorization

Discount Examples

• Memory-optimized machines can enjoy up to70% discount.
• Other machine series max.55% discount.
• SUSE Linux Enterprise Server images are licensed up to79% discount.

Scope of application and operation of resource-based CUDs

• Applicable resources
  • Compute Engine's vCPUs, memory, GPU, and local SSD.
  • Exclusive node and operating system authorization.
• How it works
  • The contract will be effective at 12:00 AM (Pacific Time) on the day after purchase.
  • Billed monthly regardless of whether resources are fully utilized.
  • Cancellation is not allowed during the contract period.

Flexible Committed Use Discounts

Elastic CUDs are cost-based discounts that apply to your total consumption on services such as Compute Engine, Google Kubernetes Engine (GKE), and Cloud Run. Its main features include:

• Not limited to a specific project, region or machine series.
• For those who need predictable spending across multiple Google Cloud services.
• Applicable resources:
  • vCPUs
  • Memory

Discount Examples

• 1 year contract:Enjoy28% discount.
• 3-year contract:Enjoy46% Discount.

Scope and operation of flexible CUDs

• Applicable resources
  • Supports Compute Engine, GKE, and Cloud Run.
  • Available in general purpose (C3, N1, etc.), compute optimized (C2), and storage optimized (Z3) machine families.
• How it works
  • Effective upon purchase, commit to a minimum hourly spend.
  • If actual usage exceeds the committed amount, the excess will be charged at the on-demand price.

Discount application order

It is important to note that the Compute Engine discount types provided by Google Cloud are mutually exclusive and cannot be applied to the same resource at the same time. At any given time, a resource can only enjoy one of these discounts. If a certain resource usage has already enjoyed a specific discount type, the remaining discounts will not be applied to that usage. When you purchase both resource-based and elastic committed use discounts for Compute Engine resources, Google Cloud intelligently optimizes committed use in the following order:

1. Resource-based CUDs discounts are applied first.
2. Then apply the flexible CUDs discount.
3. The remainder is subject to on-demand pricing andRenewal Discounts (SUDs).

Example application scenario

Resource-based CUDs Application

Assuming you purchase a 3-year resource-based CUD for a specific region, including 16 vCPUs and 64 GB of memory, then:

• Fixed discounted price per hour for resources.
• Even if part of the time is not used, the commitment fee still needs to be paid.

Flexible CUDs Application

Assume you purchased 3 years of flexible CUDs at US$100 per hour:

• If the resources used, such as vCPUs and memory, reach US$150, then:
  • Get a discount on resources worth US$100.
  • Any additional US$50 will be charged at the on-demand price.

in conclusion

Committed use discounts provide a stable and flexible cost management option that suits different types of workload needs. Whether it is resource-based discounts for stable demand or elastic discounts for multi-service expenditures, they can help users significantly reduce the operating costs of cloud computing.

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