Editorial photograph supporting the Google Cloud CUD Guide 2026 article
Spoke · Google Cloud · CUD

Google Cloud CUDs. The 2026 guide.

Committed Use Discounts price Google Cloud commit in two flavors. Spend based CUDs target flexible workloads. Resource based CUDs target specific machine families. The shape of the commit moves the discount. This guide maps the mechanics.

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Up to 70%CUD ceiling
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Google Cloud Committed Use Discounts price commit. Two flavors exist. Spend based CUDs apply across services and machine families. Resource based CUDs lock in specific machine families. Three year commits unlock the deeper discount. BigQuery and Spanner run separate slot based commit programs.

Read this alongside the Google Cloud pillar hub, the GCP advisory service, the CUD negotiation article, the CUD playbook, and the BigQuery and Vertex hub.

Key Takeaways

What every Google Cloud buyer should know about CUDs

  • Two CUD flavors. Spend based for flexibility, resource based for specific machine families.
  • One or three year terms. Three year unlocks the deeper discount band.
  • Discount range is wide. CUDs run from 20 to 70 percent depending on shape and term.
  • BigQuery is separate. BigQuery slots have their own commit program with flex and annual options.
  • Custom contracts overlay. Google Cloud custom contracts price on top of standard CUDs.
  • Marketplace commit counts. Marketplace transactions count toward custom contract commit when negotiated.
  • Migration credit is real. New workloads moving from on prem or AWS attract migration credits and CUD breaks.

CUD types

Google Cloud sells two distinct CUD products. Each targets a different workload profile.

Spend based CUDs

Spend based CUDs apply a discount on a dollar commitment per hour. Customers commit to a level of hourly spend in a region. The discount applies across compute services, including Compute Engine, GKE, Cloud Run, and selected managed services.

  • Flexible across machine families. The commit moves with the workload.
  • Term options. One year or three year.
  • Auto applied. No machine family selection required.
  • Discount range. 25 to 55 percent.

Resource based CUDs

Resource based CUDs apply a deeper discount on a specific machine family in a specific region. Customers commit to vCPU and memory volumes per family.

  • Machine family locked. N2, E2, C3, T2D selected at commit.
  • Region locked. Discount applies only in the committed region.
  • Term options. One year or three year.
  • Discount range. 37 to 70 percent.

Discount mechanics

CUD discount applies as a percentage off the on demand rate. The percentage depends on the CUD type, term length, and machine family.

Stacking with custom contracts

Google Cloud custom contracts price on top of CUDs. Customers with a custom contract typically run a layered commercial structure: custom contract discount on total spend plus CUD discount on committed workload.

CUD discount bands

Commit type1 year3 year
Spend based25 percent45 to 55 percent
Resource based N237 percent55 percent
Resource based E237 percent55 percent
Resource based memory optimized40 percent60 to 70 percent
Sole tenant nodes25 percent50 percent

BigQuery slot commits

BigQuery runs a separate commit program. Customers buy slots on flex, monthly, or annual commit. Slots price compute capacity for BigQuery query workloads.

Slot commit options

  • Flex slots. 60 second minimum. No commit. Best for spike workloads.
  • Monthly slots. 30 day commit. Mid range pricing.
  • Annual slots. 365 day commit. Deepest commit discount.
  • Reservation hierarchy. Org, folder, project, or assignment scoped.

BigQuery commit mix

Most enterprises run a mixed commit. Annual slots cover the baseline workload. Flex slots absorb spike load and dev test. The mix balances cost and elasticity.

Buyer side levers

Six levers move GCP CUD pricing. Pull them in combination.

The six levers

  1. Workload baseline analysis. Commit only the steady state baseline. Burst stays on demand.
  2. Three year term. Unlocks 45 to 70 percent depending on commit type.
  3. Resource type selection. Pick machine family with deepest discount that fits workload.
  4. Custom contract overlay. Negotiate custom contract on top of CUD.
  5. Marketplace commit. Marketplace transactions count toward custom contract commit.
  6. Migration credit. New workloads attract migration credit on top of CUD.

Impact ranges

LeverTypical impactEffort
Workload baseline analysis10 to 25 percent on commit wasteHigh
Three year term15 to 30 percent vs one yearLow
Resource type selection5 to 15 percentMedium
Custom contract overlay5 to 15 percentHigh
Marketplace commit3 to 10 percentMedium
Migration credit10 to 30 percent on year oneMedium

Renewal patterns

CUD renewal patterns differ from custom contract renewal. CUDs renew per commit; custom contracts renew at the broader term anniversary.

Renewal cadence

  1. Day minus 90. Pull CUD inventory. Pull custom contract terms.
  2. Day minus 60. Analyze workload baseline versus committed level.
  3. Day minus 45. Open custom contract negotiation if applicable.
  4. Day minus 30. Decide CUD commit shape and term.
  5. Day 0. Renewal executed. New CUD lifecycle starts.

What to do next

The checklist takes a GCP buyer from current state to a defensible CUD commitment in 90 days.

  1. Pull the billing dump. 12 months of consumption by service, region, and machine family.
  2. Build the workload baseline. Steady state versus spike workload. Spike stays on demand.
  3. Pick the CUD type. Spend based for flexibility. Resource based for stable machine families.
  4. Pick the term length. Three year for deepest discount. One year for flexibility.
  5. Layer the custom contract. Negotiate custom contract on top of CUD for total spend discount.
  6. Negotiate Marketplace commit. Marketplace transactions count toward custom contract commit.
  7. Apply migration credit. New workloads from on prem or AWS attract migration credit.

Read the Google Cloud pillar hub, the Google Cloud negotiation hub, the GCP advisory service, the migration hub, the CUD negotiation article, the CUD playbook, the BigQuery and Vertex hub, the CUD negotiation tactics, the GCP discount benchmarks, the Vendor Shield subscription, and the contact page.

Frequently asked questions

What is the difference between spend based and resource based CUDs?

Spend based CUDs apply on dollar commit per hour and flex across compute services and machine families. Resource based CUDs lock in vCPU and memory volume for a specific machine family in a specific region and carry deeper discount.

How long do CUD commitments last?

CUDs run on one year or three year terms. Three year commits unlock the deepest discount across both spend based and resource based programs. CUDs are not reducible mid term.

Does Google Cloud refund unused CUD commit?

No. CUD commits are firm. The customer pays the hourly rate whether the workload runs or not. Right size the commit at signing to the steady state baseline.

How do BigQuery slots work?

BigQuery slots price compute capacity for BigQuery query workloads. Flex slots run 60 second minimum with no commit. Monthly slots commit for 30 days. Annual slots commit for 365 days with deepest discount.

Can we stack CUDs with a custom contract?

Yes. Google Cloud custom contracts price on top of CUDs. The customer with a custom contract runs a layered structure: custom contract discount on total spend plus CUD discount on committed workload.

How does Marketplace fit in a Google Cloud custom contract?

Marketplace transactions can count toward custom contract commit when negotiated upfront. The clause is not standard. Buyers with material Marketplace spend should request the inclusion at contract signing.

How does Redress engage on Google Cloud?

Redress runs Google Cloud advisory inside the Vendor Shield subscription and the Renewal Program. Engagements cover CUD design, custom contract negotiation, Marketplace commit, and BigQuery slot strategy.

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70%
CUD ceiling
3 yr
Best discount term
500+
Enterprise clients
$2B+
Under advisory
100%
Buyer side

CUDs are not a hedge. They are a commitment. Buy the baseline and let the burst stay on demand. The customer who commits the burst pays for the burst that never came.

Former Google Cloud Enterprise Sales Lead
On the buyer side, 26 GCP engagements in 2025
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