Google Cloud offers two cost-saving options: sustained use discounts and committed use contracts. Here’s a detailed explanation of each:
- Sustained Use Discounts:
Sustained use discounts are automatically applied to virtual machine instances that run for a significant portion of a billing month. The discount is based on the total usage of specific machine types within a project. Here’s how it works:
- Usage Calculation: Google Cloud calculates the sustained use discount based on the number of hours a specific machine type is used within a month. The discount applies to individual machine types, irrespective of the number of instances used.
- Discount Tiers: The sustained use discount has three tiers: 0-25%, 25-50%, and 50-100%. As the usage of a specific machine type increases within a month, the discount tier also increases, providing higher savings.
- Automatic Application: Once a machine type qualifies for a discount, the discounted rate is automatically applied to all the instances of that machine type within the project. You don’t need to take any manual steps to enable the discount.
- Flexibility and Optimization: Sustained use discounts offer flexibility as they apply across regions and availability zones. You can optimize your usage to maximize the discount by ensuring consistent usage of specific machine types within a month.
It’s important to note that sustained use discounts apply to virtual machine instances only and do not cover other services like storage or networking.
- Committed Use Contracts:
Committed use contracts allow you to commit to using specific Google Cloud resources for a term of one or three years. By committing to usage, you receive discounted prices compared to on-demand usage. Here are the key aspects of committed use contracts:
- Term Commitment: You commit to using a specific quantity of resources, such as virtual machine instances or GPUs, for either one or three years. The commitment is based on a specific region and machine type.
- Discounted Pricing: Committed use contracts offer significant discounts compared to on-demand prices. The discount percentage depends on the length of the commitment and the resource type.
- Regional and Zonal Commitments: Committed use contracts allow you to commit to resources at a regional or zonal level. Regional commitments provide more flexibility for resource usage across availability zones within a region, while zonal commitments are specific to a single availability zone.
- Instance Flexibility: Committed use contracts provide instance flexibility, allowing you to change the specific machine type or size within the committed family during the contract term. This enables you to adapt to changing requirements while still benefiting from the committed discount.
- Prepayment and Billing: Committed use contracts require prepayment for the committed term, either partially or fully upfront, depending on the payment option chosen. The commitments are billed monthly, and any usage beyond the commitment is charged at regular on-demand rates.
Committed use contracts provide cost predictability and significant savings for long-term usage of specific resources within Google Cloud.
Both sustained use discounts and committed use contracts offer cost-saving opportunities on Google Cloud, allowing you to optimize your cloud spend based on your workload patterns and requirements. It’s recommended to review the specific pricing details and terms on the Google Cloud Platform website or consult with Google Cloud sales representatives for accurate and up-to-date information.
