Committed use discounts

This page describes how committed use discounts work with Backup and DR (for Google Cloud VMware Engine).

What are Committed use discounts?

Committed use discounts (CUDs) provide deeply-discounted prices in exchange for committing to continuously use Backup and DR for protecting VMware Engine and VMware Engine storage-only nodes in a particular region for a one- or three-year term.

CUDs are ideal for workloads with predictable resource needs. You commit to a consistent amount of usage, measured in $ per hour of equivalent on-demand spend, for a one- or three-year term. In exchange, you receive a discounted rate on the applicable usage your commitment covers.

CUD pricing

Backup and DR (for VMware Engine) CUDs give you the following discounts:

  • 24.4% discount off on-demand pricing for a one-year commitment invoiced monthly
  • 42.5% discount off on-demand pricing for a three-year commitment invoiced monthly
  • 30% discount off on-demand pricing for a one-year commitment invoiced in full at the start of the contract
  • 50% discount off on-demand pricing for a three-year commitment invoiced in full at the start of the contract

These discount percentages are the same in every region. See Backup and DR pricing for examples of pricing that include CUDs.

How do CUDs apply to Backup and DR (for VMware Engine) usage?

CUDs automatically apply to aggregate node usage in a region, giving you low, predictable costs, without the need to make any manual changes or updates yourself. This flexibility saves you time and helps you to save more by achieving high utilization rates across your commitments.

Purchase commitments

To learn more about purchasing spend-based commitments, see the Google Cloud Committed use discounts page.

You can purchase CUDs from any Cloud Billing, and the discount applies to any eligible usage in projects paid for by that Cloud Billing. Any overage is charged at the on-demand rate. Before you purchase a commitment, read the Service specific terms regarding Committed Units.

When you purchase a Backup and DR (for VMware Engine) committed use discount, you pay the same commitment fee for the entirety of the commitment term, even if the price of applicable usage changes. You still receive the same discount percentage on applicable usage in the event of a price change. The commitment fee is billed monthly.

Hourly on-demand commitment

For Hourly on-demand commitment, you need to enter the on-demand price that matches your planned usage. To calculate the value for the field, multiply the number of nodes with the hourly price of the protected node in the region listed. If you additionally have an approved contractual discount, include the discount percentage when calculating the hourly on-demand commitment.

For example, you want to purchase a commitment for three protected nodes at $0.46 per hour, and you additionally have a contract that includes a promotional discount of 12%, then the hourly on-demand commitment = 3 nodes * $0.46 per hour * (1 - 0.12) = $1.2144 per hour

Before you begin

Before you can purchase a CUD, make sure you have the correct Enterprise Discount Program (EDP) and CUD information.

Purchasing commitments for node types

You can purchase commitments for node types by using the Google Cloud console. After purchasing a committed use discount, the commitment is effective starting within the next hour. CUDs are automatically applied to eligible usage in the region you specified.

To purchase a commitment for Backup and DR (for VMware Engine) in your project for a specific node type, do the following:

  1. In the Google Cloud console, go to Billing > Commitments.
  2. On the Committed use discounts page, click Purchase.
  3. In the Product list, select Backup and DR (for VMware Engine).
  4. In the Commitment name field, provide a name that helps you identify the commitment that you're purchasing.
  5. Choose a commitment duration of one or three years.
  6. Select the region where you want to spend towards your commitment.

  7. In the Hourly on-demand commitment field, enter the on-demand price that matches your planned usage. For more information, see Hourly on-demand commitment.

  8. Review the information you provided.

  9. Click the Purchase button to purchase the commitment.

Questions and challenges

Consider the following questions and answers in addition to some challenges you might face and how to address them:

Where do I find discount information?

You can find discount information by doing the following:

  1. Check the contracts signed with Google Cloud.
  2. Talk to your Google account representative.

What kind of discount information do I need to know before purchasing CUDs?

Customers receive different kinds of discounts based on the contracts they signed with Google Cloud. For VMware Engine, the most common discount received is EDP.

Enterprise discount

Consider the following information about enterprise discounts:

  1. An enterprise discount is the most common discount used by Backup and DR (for VMware Engine) customers. This discount is offered as part of a large Google Cloud commit.
  2. Check for Backup and DR (for VMware Engine) pay-as-you-go SKUs. For example, look for "VMware Protected Standard 72 VCPU Node". SKUs that have "Commitment - dollar based" are not applicable.
  3. Refer to your contract or talk to your Google representative to verify.

  4. For example, customers with 10% EDP on Backup and DR (for VMware Engine) pay-as-you-go SKUs will receive this discount on Backup and DR (for VMware Engine) consumption during the contract period.

    If you enter an incorrect EDP while purchasing a storage-only node, it will impact the invoice. The following may also result:

    • You might be charged for overage. For example, if the actual EDP is 0% but you enter 10%, you might receive an overage charge every month in addition to the CUD charges.
    • If you enter an EDP that's less than the actual discount, then you might commit to spending more than what's required.