Sole-tenancy accounting FAQ

This FAQ can help you evaluate whether you can classify your sole-tenant node payments as capital expenditures (CAPEX) or operational expenditures (OPEX). Although Google provides this FAQ, Google recommends that you consult with your accountants about how to classify your payments for sole-tenant nodes.

What are sole-tenant nodes?

Normally, VMs run on physical hosts that might be shared by many customers. With sole-tenant nodes, you have exclusive access to the VMs on the physical host. Each sole-tenant node is associated with one physical server. Within each node, a single customer can fully control which VMs are running on that node, without sharing the host hardware with other customers.

Should I consider the purchase of a sole-tenant node as CAPEX or OPEX?

Google does not provide guidance about accounting. Please review the details about the sole-tenant node product before you make any accounting decisions regarding CAPEX or OPEX.

Can I uniquely identify a sole-tenant node?

Yes, each sole-tenant node has a unique identifier: the server_id. The server_id is unique across all of Google Cloud hardware, and is available as soon as you create a sole-tenant node. Retrieve the server_id with the nodeGroups.listNodes REST request.

What is the server_id?

The server_id is a unique identifier that is used to mark each physical server. When a sole-tenant node is allocated to your account, there is a one-to-one relationship between the server_id and the physical server.

Will Google Cloud reuse the same server_id for different physical servers?

No, Google Cloud does not reuse the same server_id for different physical servers. If the physical host is retired due to maintenance-related events, you receive a replacement server along with its server_id, and your VMs are moved to the replacement server. Maintenance-related events are logged in the Cloud Audit Logs, and you can use these logs to help you trace the lineage of your physical server.

In the event that my physical host is retired, can I trace the server_id lineage?

Yes, each time a host is retired and you are provided a replacement host, the new server_id is available in Cloud Audit Logs. Use these logs to trace the server_id history of your VM's hosts.

How am I billed for a sole-tenant node?

You pay for the entire sole-tenant node on a per-second basis, regardless of how many VMs are running on the node. When you provision a sole-tenant node, you control the VMs on that host.

Can I pay for a commitment of longer than one year?

You can purchase sole-tenant nodes with a 1- or 3-year committed use discount, or you can pay for them as you use them. For more information about pricing, see sole-tenant node pricing.

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