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Committed use discounts for Red Hat Enterprise Linux now available on Compute Engine

GCP – Committed use discounts for Red Hat Enterprise Linux now available on Compute Engine

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Google Cloud is pleased to announce the general availability of committed use discounts (‘CUDs’) for Red Hat Enterprise Linux. If you run consistent and predictable workloads on Compute Engine, you can utilize CUDs to save on Red Hat Enterprise Linux subscription costs by as much as 20%1 compared to on-demand (or “PAYG”) prices. 

“Red Hat Enterprise Linux on Google Cloud provides a consistent foundation for hybrid cloud environments and a reliable, high-performance operating environment for applications and cloud infrastructure. The introduction of committed use discounts for Red Hat Enterprise Linux for Google Cloud makes it even easier for customers to deploy on the world’s leading enterprise Linux platform to unlock greater business value in the cloud.” – Gunnar Hellekson, Vice President and General Manager, Red Hat Enterprise Linux Business Unit, Red Hat 

What are committed use discounts for RHEL?

Red Hat Enterprise Linux committed use discounts (collectively referred to as ‘Red Hat Enterprise Linux CUDs’ or ‘RHEL CUDs’) are resource-based commitments available for purchase in one year terms. When you purchase Red Hat Enterprise Linux CUDs, you are committing to paying the monthly Red Hat Enterprise Linux subscription fees for the duration you’ve selected for the number of subscriptions you specify. In exchange, you can save as much as 20% on Red Hat Enterprise Linux subscription costs compared to on-demand rates. CUDs are ideal for your predictable and steady-state usage, allowing you to maximize savings and simplify budget planning.

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How do RHEL committed use discounts work?

RHEL CUDs are project- and region-specific. That means you will need to purchase them in the same region and project as the instances consuming these subscriptions. After you make a purchase, discounts automatically apply to any running virtual machine (VM) instances within a selected project in the specified region. If you have multiple projects under the same billing account, commitments can also be shared across projects by turning on billing account sharing.

When commitments expire, your running VMs continue to run at on-demand rates. It is important to note that after you purchase a commitment, you cannot edit or cancel it. You must pay the agreed-upon monthly amount for the duration of the commitment. Refer to Purchasing commitments for licenses for more information. 

How much can I save with RHEL committed use discounts?

You can save as much as 20% on one-year commitments compared to the current on-demand prices. However, it is important to remember that you will be charged the monthly subscription fees, even if your actual RHEL usage is lower. Therefore, to maximize the discounts you can receive, we recommend purchasing CUDs for steady and predictable workloads. Here is a helpful comparison between the maximum discounts possible versus their relative on-demand prices:

License Family

Machine Size

On-demand

1 Year CUD

Price2

Price3

Discount4

Red Hat 
Enterprise Linux

1-8 vCPU

$0.0144 / vCPU-hour

$0.0115 / vCPU-hour

$100.92 / vCPU-year

~20%

9-127 vCPU

$0.0108 / vCPU-hour

$0.0086 / vCPU-hour

$75.69 / vCPU-year

128+ vCPU

$0.0096 / vCPU-hour

$0.0077 / vCPU-hour

$67.28 / vCPU-year

Based on our research, CUDs are a good fit for many Red Hat Enterprise Linux VMs, the majority of which run 24/7 workloads. When evaluating whether they are right for you, consider the following: Based on list prices for a one-year term, Red Hat Enterprise Linux CUDs can help you save on subscription costs if you utilize a Red Hat Enterprise Linux instance for ~80% or more of the time within the one-year CUD term.

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*Savings are estimates only. This analysis assumes only one Red Hat Enterprise Linux instance with 8 vCPU running under the CUD project and region.

How do I purchase RHEL committed use discounts?

The easiest way to purchase Red Hat Enterprise Linux CUDs is through the Google Cloud console. 

  1. In the Google Cloud console, go to the Committed Use Discounts page. 

  2. Click Purchase commitment to purchase a new commitment. 

  3. Click New license committed use discount to purchase a new license commitment. 

  4. Name your commitment and choose the region where you want it to apply. 

  5. Choose a License family. 

  6. Choose the License type and quantity. 

  7. Choose the Number of licenses. 

  8. Click Purchase.

You can also purchase Red Hat Enterprise Linux commitments using the Google Cloud CLI or the Compute Engine API. 

For more information, refer to Purchasing commitments for licenses. We hope this helps you find the most cost-optimal plan for your Red Hat Enterprise Linux deployment needs.

1. Refer to the table in the “How much can I save with RHEL committed use discounts?” section of this blog for details on how discounts are calculated
2. Price as of this article’s publish date.
3. Hourly costs are approximate. Calculations are derived based on the full CUD prices (as of this article’s publish date), assuming VMs running 730 hours per month, 12 months per year. Yearly costs have been rounded to the nearest whole cent.
4. Discounts compared to current on-demand pricing are rounded to the nearest whole number.

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