Save with Google Cloud Committed Use Discounts | GCP CUD Guide


 

📝 Article: How to Optimize Google Cloud Costs with Committed Use Discounts (CUDs)

Introduction

Managing costs in the cloud isn’t just about reducing usage — it’s about spending smarter. One of the most effective ways to save on predictable workloads in Google Cloud is through Committed Use Discounts (CUDs). If your team runs consistent virtual machines, databases, or GPU-intensive workloads, this guide will show you how to significantly reduce your cloud bill — sometimes by up to 70%.

What Are Committed Use Discounts?

Committed Use Discounts are pricing contracts where you agree to purchase a certain amount of resources (like vCPUs, memory, or GPUs) for a 1-year or 3-year term. In exchange, Google offers substantial discounts — compared to the pay-as-you-go model.

💡 Example: If your application consistently uses 64 vCPUs every month, committing to that usage upfront will cost you far less over time.

Key Differences: CUDs vs. Sustained Use Discounts

FeatureCommitted Use Discount (CUD)Sustained Use Discount (SUD)
TriggerManual purchaseAutomatic (based on usage)
Duration1 or 3 yearsMonthly
Best forPredictable workloadsIrregular or bursty workloads
Can combine with other offers❌ No✅ Sometimes applicable

You cannot combine CUDs and SUDs for the same resources.

What Can You Commit To?

  • vCPUs and Memory

  • GPUs and Local SSDs

  • Spanner nodes

  • Cloud SQL resources

You can also choose regional CUDs or zonal CUDs, depending on whether your workloads are flexible across zones.

How to Purchase a Commitment

  1. Go to the GCP Console.

  2. Navigate to Compute Engine > Committed use discounts.

  3. Click "Purchase Commitment".

  4. Choose your resource type, duration, and amount.

  5. Confirm and finalize the purchase.

🛠 Tip: Before committing, review historical usage data from the Billing dashboard to choose realistic numbers.

How to Monitor Commitment Utilization

Use the Committed Use Discount Analysis Report:

  • Go to the Billing section of GCP Console.

  • Select "Commitments".

  • Filter by resource, project, or region.

  • View charts that show:

    • Active commitments

    • Eligible usage

    • Unused capacity

🧩 If you see a consistent underutilization, consider adjusting or consolidating your workloads.

Real-World Use Case

A mid-sized SaaS company runs backend APIs that require stable compute power. They:

  • Analyze usage over 6 months.

  • Commit to 96 vCPUs and 384 GB RAM for 1 year.

  • Save $28,000+ per year via CUDs compared to on-demand pricing.

Best Practices for CUDs

  • Start with short-term (1-year) CUDs before committing long-term.

  • Use the CUD Analysis Report monthly to track savings and utilization.

  • Combine with budget alerts and quota limits for full cost control.

  • Avoid overcommitting — unused commitments still incur cost.

  • Align CUDs with non-intermittent, always-on services (like databases, backend APIs, etc.).

Conclusion

Google Cloud’s Committed Use Discounts provide an excellent opportunity to lower your cloud bill — without sacrificing performance or flexibility. By making informed, data-driven commitments, you can reinvest savings into growth, development, or other strategic initiatives.

Whether you're scaling a startup or optimizing enterprise infrastructure, understanding and utilizing CUDs is a smart move in your cloud cost strategy.

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