Committed Use Discount

I. Formal Definition

A Google Cloud pricing mechanism in which a customer commits to a fixed level of resource usage over a defined term in exchange for a discount on the underlying rate. Committed use discount is the GCP analogue of the AWS Savings Plan and the Azure Reserved Instance constructs. The federation requires committed use discount portfolios to be reported with the term distribution, the resource family coverage, and the realised utilisation rate under UFMS-001:2.4(d). Renewal cycles align with the broader procurement consolidation calendar.

II. Etymology

Introduced by Google Cloud Platform in 2017; the term parallels the language of other major provider commitment programs.

III. Federation Usage

Federation members on Google Cloud publish committed use discount portfolios with term, family, and utilisation. Renewal cycles are calendared at least one hundred eighty days out. Underutilisation is escalated for procurement renegotiation under MEV-Annex:3.2.

IV. Related Terms

• sustained-use-discount
• savings-plan
• reserved-instance
• commitment-utilization

V. Authoritative Citations

• UFMS-001:2.4UFMS Article II - Committed Use
• MEV-Annex:3.2MEV Annex III - Committed Use Reporting

VI. Citation in BibTeX

@misc{ifo4_glossary_committed_use_discount,
  title        = {{Committed Use Discount}},
  author       = {{IFO4 Federation Editorial Board}},
  howpublished = {{IFO4 Federation Glossary, slug \texttt{committed-use-discount}}},
  year         = {2026},
  url          = {https://ifo4.org/glossary/committed-use-discount},
  note         = {Category: FinOps; key: CommittedUseDiscount}
}

VII. Challenge This Definition

Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.