Committed use discounts
This page describes how committed use discounts work with Google Cloud VMware Engine.
What are VMware Engine committed use discounts?
Committed use discounts (CUDs) for VMware Engine provide deeply-discounted prices in exchange for committing to continuously use VMware Engine nodes in a particular region for a one- or three-year term.
VMware Engine committed use discounts are ideal for workloads with predictable resource needs. You commit to a consistent amount of usage, measured in $/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.
Committed use discounts and VMware Engine pricing
VMware Engine committed use discounts 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 VMware Engine pricing for examples of pricing that include committed use discounts.
How do committed use discounts apply to VMware Engine usage?
Committed use discounts automatically apply to aggregate VMware Engine 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.
VMware Engine committed use discounts apply to all VMware Engine nodes for the region for which you have purchased commitments. VMware Engine committed use discounts do not apply to storage, backups, IP Addresses, network egress, or licensing.
Purchasing VMware Engine commitments
To learn more about purchasing spend-based commitments, see the Google Cloud Committed use discounts page.
You can purchase committed use discounts from any Cloud Billing account, and the discount applies to any eligible usage in projects paid for by that Cloud Billing account. 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 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.
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. Committed use discounts are automatically applied to eligible usage in the region you specified. If there is no eligible usage in that region, you can add VMware Engine nodes to count towards your commitment by requesting node quota.
To purchase a commitment in your project for a specific node type, do the following:
- In the Google Cloud console, go to Billing > Commitments.
- On the Committed use discounts page, click Purchase.
- In the Product list, select VMware Engine.
- In the Commitment name field, provide a name that helps you identify the commitment that you're purchasing.
- Choose a commitment duration of 1 or 3 years.
- Select the region where you want to spend towards your commitment.
In the Hourly on-demand commitment field, 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 node in the region listed above. 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 3 nodes at $10/hour, and you additionally have a contract that includes a promotional discount of 12%:
- Hourly on-demand commitment = 3 nodes * $10/hour * (1 - 0.12) = $26.40/hour
Review the information you provided and click the Purchase button to purchase the commitment.