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 CUDs 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.

CUDs and VMware Engine pricing

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 VMware Engine pricing for examples of pricing that include CUDs.

How do CUDs apply to VMware Engine usage?

CUDs 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 CUDs apply to all VMware Engine nodes for the region for which you have purchased commitments. VMware Engine CUDs do not apply to storage, backups, IP Addresses, network outbound data transfer, 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 CUDs 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 CUD, 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 or upfront, depending on the type of CUD.

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 CUD, monthly paid CUDs begin within an hour of purchasing, while upfront paid CUDs begin at 12 AM Pacific.

CUDs 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:

ve1

To purchase a commitment in your project for a specific node type using ve1, do the following:

  1. In the Google Cloud console, go to Billing.
  2. On the Committed use discounts page, click Purchase.
  3. In the Product list, select 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 1 or 3 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. To calculate the value for the field, multiply the number of nodes with the hourly price of the node in the region previously listed. If you additionally have an approved contractual discount, include the discount percentage when calculating the hourly on-demand commitment.

The following example applies if you have an EDP (a discount on the pay-as-you-go SKU):

Identify the list price for the region for ve1 from the pricing page. For example: If the EDP is 12% and the list price is $9.29 with 3 nodes, then the hourly on-demand commitment = 3 nodes * $9.29/hour * (1-0.12) = $26.40/hour.

The following conditions apply if you have a custom CUD discount, as in the CUD has been discounted deeper than a standard CUD discount:

  • A higher discount will be listed under the 1-year and 3-year CUD terms.

  • For a monthly paid CUD, if the discount is > 24.4% for a 1-year term and > 42.5% for a 3-year term; or

  • For upfront paid CUD, if the discount is > 30% for a 1-year term and >50% for a 3-year term.

Then, the hourly on-demand commitment = 3 nodes * $9.29/hour to buy 3 nodes in a region with a $9.29 list price.

You will receive this deeper discount only in select regions where it has been negotiated. The summary hourly commitment cost will show the actual discount percentage applied. Confirm that you've selected the correct CUD in the selected region to receive the negotiated discount by looking at the discount in Hourly Commitment Cost in the summary.

ve1 storage-only

To purchase a commitment in your project for a storage-only node (SON) using ve1, do the following:

  1. Access the Google Cloud console.
  2. From the main navigation, click Committed use discounts.
  3. Click Purchase.
  4. In the Name field, provide a name that helps you identify the commitment that you're purchasing.
  5. Select the region where you want to spend towards your commitment.
  6. Choose a subscription type for your commitment.
  7. Choose a commitment duration of 1 or 3 years.
  8. Select a node type and node count for your commitment.
  9. Enter a custom or enterprise discount percentage, if applicable.
  10. Review the information you provided and click Purchase to purchase the commitment.

    Prices are estimated so there might be a difference in the final price.

  11. To view the created CUDs, go to Billing > Committed use discounts.

For information about how to view the audit logs, see Committed use discounts audit logging.

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.
  3. Check the pricing table found in your billing account and search for VMware Engine SKUs by filtering for the "VMware Engine" service description. The discount column displays your discount percentage.
  4. Check for the Discount column VMware Engine pay-as-you-go SKUs. For example, look for "Standard 72 VCPU Node (region-name)" for ve1 nodes. Look for SKUs that have "Commitment - dollar based" under VMware Engine.

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 a custom CUD discount, followed by EDP.

Custom discount

Consider the following information about custom discounts:

  1. A custom discount is a discount offered on a CUD. Customers are offered a deeper discount on a CUD in a specific region for a certain CUD type. For example, you might be provided a deeper CUD discount for a 3-year prepaid CUD in us-east4 only.
  2. To use this discount, you should purchase only that particular CUD in that region. If you purchase any other CUD in a different region, the extra discount won't be applied.
  3. You should refer to your contract or talk to your Google representative before proceeding with the purchase.

When purchasing storage-only nodes with custom CUD discounts, the following applies:

  • You must input the contracted discount percentage.
  • You can't receive a higher discount than contracted by entering a higher custom discount.
  • The underlying system always applies the negotiated discount as per the signed contract.
  • Entering incorrect custom discounts affects the summary values generated at the time of purchase and won't match the final invoice.

Enterprise discount

Consider the following information about enterprise discounts:

  1. An enterprise discount is the most common discount used by VMware Engine customers. This discount is offered as part of a large Google Cloud commit.
  2. Check for VMware Engine pay-as-you-go SKUs. For example, look for "Standard 72 VCPU Node (region-name)" for ve1 nodes. 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 VMware Engine pay-as-you-go SKUs will receive this discount on 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.

Custom and enterprise discount

This type of combined discount is rare, and considerations from both types previously listed apply.

More questions and challenges

Question or challenge How it can be addressed
Storage-only CUDs are available using an allow list. An allow list form collects email IDs for the allow list. Contact your Cloud Customer Care representative for information.
A mix of ve1 and ve1-SON requires buying CUDs at two different consoles. Follow the instructions for ve1 and ve1-SON to buy the two different CUDs.
What happens if the wrong CUD is purchased? Reach out to your Google representative as soon as possible to facilitate a resolution.

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