The three programs for commitment-based discounts vary in flexibility as outlined below.Įase of purchase: Google offers the simplest approach for purchasing, where your CUD can apply to any instance family and size in a region and there is no need to request any changes.Įase of changes: Google CUDs automatically apply to any instance type in the region. The more you are spending with a particular cloud provider, the more likely you are able to negotiate further discounts. In addition to the publicly documented discounts listed above, there are opportunities for privately negotiated discounts on a case by case basis. Sustained Use Discount (SUD) Committed Use Discount (CUD) For instances running 24x7 for an entire month, the discount maxes out at 30 percent. Google also offers a sustained use discount that requires no commitment, but offers an automatic discount on each instance type that is running in a region for more than 25 percent of a month. IBM only offers public discounts for monthly usage, which saves about 10 percent over on-demand usage. In all cases, you can decide how much usage to commit, and how much to leave as on-demand. With the recent availability of Azure Reserved Instances, the big three cloud providers-AWS, Azure, and Google-all offer publicly available discounts (reaching as high as 75 percent) in exchange for committing to usage on the cloud provider for a one year or three year period. For example, AWS offers instance families with and without local storage, Azure has decreased the amount of local storage on the most recent generations (although it continues to offer local storage on all instance families), and Google continues to offer no local storage out of the box, making it an “optional add-on” for any VM type. Local disk pricing evolves: Cloud providers seem to be steering users away from a reliance on local disks for instances, and instead pushing toward attached storage. Azure offers per second billing only on container instances. Google has always provided per second billing, but reduced the minimum time billed for an instance from 10 minutes down to 1 minute.
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