What Is Committed Use Discount?
A committed use discount is the Google Cloud deal that trades a fixed term of usage for a lower rate. If you are asking what is committed use discount, picture a promise to use a set amount of compute or spend for one to three years, and Google discounts that usage in return. The deeper the commitment, the deeper the rate, and the heavier the cost if your usage later falls away.
What is committed use discount in plain terms?
A committed use discount, almost always shortened to CUD, is a Google Cloud commitment to a level of usage or spend over a term of one to three years. In exchange, Google applies a discount to that committed usage. As of June 2026, Google offers two forms. Resource based CUDs commit you to a quantity of vCPU and memory and stay flexible across instance types within a family. Spend based CUDs commit you to a dollar amount of eligible spend.
The split matters at the table. A resource based CUD rewards a workload you expect to hold steady. A spend based CUD suits broader, shifting usage where you trust the total but not the shape. Choosing the wrong form locks you to the wrong thing.
How the discount actually works
A CUD discounts the usage you commit to, and the rate deepens with term length and commitment size. As of June 2026, Google also applies automatic sustained use discounts that need no commitment at all, but these do not double stack with CUDs on the same resource. Google applies the committed use discount to your committed usage, and sustained use discounts cover eligible usage that sits outside a commitment.
For the largest buyers, Google also offers custom private pricing and workload agreements that sit above the standard CUD framework. As of June 2026, that custom layer is where the real negotiation happens, and it is rarely offered unprompted.
The buyer risks to watch
The core risk is overcommitment. As of June 2026, you pay for the commitment whether or not you use it, so a CUD signed against hoped for growth becomes a bill for usage that never arrived. A three year term locks the rate but also removes your leverage for the duration, which is why term length is a negotiation in its own right.
Size the commitment to the usage you are confident will persist for the full term. The flexible portion of your spend belongs outside the CUD, where sustained use discounts and on demand pricing keep your options open.
Sizing a CUD and want it right before you sign? Book a confidential cloud commitment negotiation review before you sign.
What is a committed use discount in simple terms?
As of June 2026 a committed use discount, or CUD, is a Google Cloud discount you earn by committing to a level of usage or spend for one to three years. In return Google lowers the rate. The longer the term and the larger the commitment, the deeper the discount, and the larger the exposure if your usage drops.
What is the difference between resource based and spend based CUDs?
As of June 2026 a resource based CUD commits you to a quantity of vCPU and memory and stays flexible across instance types within a family. A spend based CUD commits you to a dollar amount of eligible spend. Resource based suits stable workloads, spend based suits broader and shifting usage.
Do committed use discounts stack with sustained use discounts?
Not on the same resource. As of June 2026 CUDs and sustained use discounts do not double stack on one resource. Google applies the committed use discount to committed usage, and sustained use discounts cover eligible usage that sits outside a commitment.
What happens if my usage falls below the committed use discount?
As of June 2026 you still pay for the commitment you signed, whether or not you use it. That is the overcommitment risk. A CUD should be sized to the usage you are confident will persist for the full term, not to peak or hoped for demand.
Condense the commitment before you sign.
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