The committed use discount (CUD) recommender helps you optimize the resource costs of the projects in your Cloud Billing account. Its recommendations are generated automatically based on historical usage metrics gathered by Cloud Billing. You can use these recommendations to purchase additional commitments and further optimize your Google Cloud costs.
For more information about the Recommender service, see the Recommender overview.
Understanding commitment recommendations
Committed use discount recommendations let you identify spending and usage patterns in your Google Cloud projects. Your spending patterns generate recommendations for spend-based commitments, and your usage patterns generate recommendations for resource-based commitments. Purchasing the recommended commitments helps you optimize your Google Cloud costs.
Recommendations for committed use discounts are generated by two separate algorithms:
- Stable usage recommendations cover minimum stable spending or usage over time.
- Optimal recommendations are based on overall spending or usage and might cover resources that are not active all the time.
Stable usage recommendations
Stable usage recommendations take into account the minimum stable spending or usage for your account over the last 30 days. If your projects show a trend of uncommitted usage during that period, the recommender classifies this as an opportunity to purchase committed use discounts to reduce your costs.
Optimal recommendations take into account overall historical usage, up to the most recent 30 days, including times when you exceeded the minimal stable spending or usage. These recommendations help you maximize savings associated with projects that experience periodic increases that aren't included in the stable usage calculations. When your spending or usage fluctuates over time, purchasing commitments at minimal stable usage might not give you the most cost savings. Optimal recommendations account for fluctuations in your usage and provide further cost savings.
In some use cases, it makes sense to purchase committed use discounts when the resource utilization or spending is lower than 100 percent. Providing recommendations in these scenarios enables you to lower your costs even more over 1-year or 3-year commitments.
This example describes a customer's usage pattern of Compute Engine CPUs, with resource-based committed use discounts. The customer has a minimum stable usage of 200 CPUs, however, most of the usage during the period is at 300 CPUs.
The following table reflects a 50% discount for the CPU price (regularly priced at $0.01/h for simplicity of the calculations here), covered by commitment (committed usage), and the difference in the total CPU cost from the previous chart. By purchasing the optimal recommendations (optimally committed at 300 CPUs), the customer saves an additional $9 for the period.
|Cost of commitment fee||Cost of uncommitted usage||Total cost|
|No commitments||$0||200 CPU * (24 h * $0.01/h) + 100 CPU * (21h * $0.01/h) + 100 CPU * (4h * $0.01/h)||$73|
|Stable usage (200 CPUs)||200 CPU * $0.01/h * 24h * 0.5||100 CPU * (21h * $0.01/h) + 100 CPU * (4h * $0.01/h)||$49|
|Optimally committed (300 CPUs)||300 CPU * $0.01/h * 24h * 0.5||100 CPU * (4h * $0.01/h)||$40|
|Fully committed (400 CPUs)||400 CPU * $0.01/h * 24h * 0.5||$0||$48|
With optimal recommendations, you can maximize the savings amount offered by commitments. You commit to spend the additional amount while the price of the commitment is lower than the list price of that particular usage.
In the previous example, with a 50% discount, the commitment that covers the usage of 300 CPUs would cost $36 (300 CPUs * $0.01/hour * 24h * 0.5) and still reduce your total cost for the period, even though there were 3 hours in the period with lower usage (200 CPUs). This occurs because the customer committed to use the additional 100 CPUs at a reduced price, which was cheaper than paying for the actual usage of 21h at the list price of $0.01/hour.
Optimal recommendations calculate your break-even point in order to suggest the optimal commitment for you to purchase. The break-even point is when the price of a resource with the committed use discount applied is equal to the price without a commitment.
Note that optimal recommendations are derived from historical usage, up to the most recent 30 days. The recommendations are the most accurate for usage patterns that remain consistent over that time frame and into the future. If your usage pattern varies significantly from month to month, you might not receive maximum savings.
Admin roles and viewer roles include the required permissions to view and update recommendations. If you are using custom roles, you must update the custom role to include the following individual permissions.
Required permissions to view
To view spend-based committed use discount recommendations:
To view resource-based committed use discount recommendations:
Required permissions to modify
To modify spend-based committed use discount recommendations:
To modify resource-based committed use discount recommendations:
Assign the following roles for spend-based commitments and resource-based commitments where your Cloud Billing account is opted in for discount sharing:
- To view recommendations only, assign the Billing Account Viewer
- To view and modify recommendations, assign the
Billing Account Administrator (
If you have not opted in for discount sharing for resource-based commitments, you need to assign different IAM roles. They must be assigned for each project in your Cloud Billing account that has purchased committed use discounts:
- To view recommendations only, assign the Viewer (
roles/viewer) role to the projects.
- To view and modify recommendations, assign the Owner (
roles/owner) or Editor (
roles/editor) role to the projects.
There are different ways to view your committed use discount recommendations.
You can view all of your commitment recommendations in the Cost Recommendations dashboard, located in the Recommendations Hub in the Google Cloud console. The recommendations include new commitments for regions in which you don't currently have any, as well as additional commitments for regions where you have already purchased some.
To view only the additional recommendations in regions with existing commitments, navigate to the Commitments or Commitment Analysis reports in the Google Cloud console.
To view the details of an individual commitment recommendation, access its recommendation summary card from the Cost Recommendations dashboard, Commitments dashboard, or the Commitment Analysis report. The card includes both stable usage and optimal commitment recommendations. Toggle between the two options to see the differences and savings associated with each.
To view the committed use discount recommendations for your Cloud Billing account, do one of the following:
|To view all recommendations in the Recommendations Hub.||
|To view a list of additional recommendations for existing commitments in the commitments dashboard.||
|To view an individual analysis of each existing commitment that includes additional recommendations.||
Understanding recommendation summary cards
The following are examples of a recommendation summary card and an associated chart that explains how the recommendation is derived.
This summary card represents recommendations for a resource-based commitment with maximize savings selected.
The following represents recommendations for the same resource-based commitment as the previous summary card, with cover minimum stable usage selected.
This summary card represents recommendations for a spend-based commitment with maximize savings selected.
The summary card displays the following:
- I want this commitment to ... - Lets you toggle the recommendations between maximize savings and cover minimum stable costs to view the difference in recommended commitment purchases and the associated savings.
- Recommended commitment - Contains the scope (either project or billing account), the region, the commitment type, and the size of the recommended commitment.
- Estimated savings - Highlights the impact of the recommendation. This is the estimated savings over the entire length of the commitment contract (toggle between 1 or 3 years to see the savings of each). This estimates how much you can save in the next 30 days based on your last 30 days spend.
The stacked bar chart displays the following:
- Daily average quantities of commitment-covered usage (lower part of the bar, blue-colored section).
- Additional usage that would have been covered by the recommended commitment (middle part of the bar, orange-colored section).
- Usage not covered by historical or recommended commitments (top part of the bar, grey-colored section).
Recommendations for spend-based and resource-based commitments are purchased by accepting them from the summary card. To access the recommendations summary cards, see viewing recommendations.
When viewing the recommendations summary card for spend-based commitments, select Apply to purchase them.
When viewing the recommendations summary card for resource-based commitments, select Continue to purchase to complete your purchase.
Reviewing and accepting recommendations
- Toggle between Maximize savings and Cover minimum stable usage to see your estimated savings for each option.
- Toggle between 1-year and 3-year to see your savings for each term.
- To begin the purchase process for the commitment recommendation:
- For spend-based commitment recommendations, click Apply at the bottom of the card to proceed.
- For resource-based commitment recommendations, click Continue to purchase at the bottom of the card to proceed.
- To complete the purchase process, review the pre-populated fields in the Purchase Commitment form for accuracy and then click Purchase.
To no longer see a particular recommendation, you can dismiss it. This prevents it from surfacing in the Cost Recommendations dashboard, Commitments dashboard, or Commitment Analysis reports.
To dismiss recommendations in the Cost Recommendations report, select the recommendation in the list and click Dismiss.
To dismiss a recommendation while viewing its summary card, select Dismiss at the bottom of the card.
Restoring dismissed recommendations
You can restore dismissed recommendations in your Recommendation HubHistory.
- View the history of your recommendations.
- To view commitment recommendations that have been dismissed, click the Dismissed tab.
- Select the commitment recommendation to be restored, then click Restore.
Viewing history of recommendations
To view the history of commitment recommendations applied and dismissed, do the following:
- From the Cloud console Navigation menu , select Home > Recommendations or the Recommendations tab from the Cloud console home page.
- To view commitment recommendations that have been applied to your account, click the Applied tab.
- To view commitment recommendations that have been dismissed, click the Dismissed tab.
- Learn more about committed use discounts
- Analyze the effectiveness of your committed use discounts
- View the credits you are receiving in reports
- Understand your savings with cost breakdown reports