Committed Use Discounts (CUDs) in GCP offer significant savings for predictable workloads. This article breaks down how they work and when to leverage them for maximum cost efficiency.
What Are Committed Use Discounts (CUDs)? GCP’s CUDs allow customers to commit to specific resources or spending levels over one or three years. In exchange, users receive discounts of up to 57% compared to on-demand pricing. Unlike AWS Reserved Instances, GCP’s CUDs provide more flexibility in resource allocation.
Types of CUDs
- Resource-Based CUDs: Commitment to specific machine types, zones, and quantities.
- Spend-Based CUDs: Commitment to a dollar amount for Compute Engine resources, offering broader flexibility.
How Do CUDs Work?
- Users select the desired commitment type and duration.
- Discounts are automatically applied to qualifying resources.
- If usage exceeds the commitment, standard rates apply to the excess.
Benefits of CUDs
- Cost Savings: Predictable and stable workloads can achieve significant cost reductions.
- Simplicity: Automatically applies discounts without additional configuration.
- Flexibility: Spend-based commitments adapt to changing workload requirements.
Best Practices for Using CUDs
- Analyze Workloads: Use GCP Cost Management tools to identify predictable workloads.
- Combine with Sustained Use Discounts: Maximize savings by layering CUDs with Sustained Use Discounts.
- Regular Reviews: Adjust commitments as business needs evolve.
Conclusion
Leverage GCP Committed Use Discounts to optimize your cloud costs for predictable workloads. Or automate savings with Hykell, maximise savings and spend no time on cost optimization. Start saving today with Hykell’s cost optimization insights.