Question

Difficulty: MediumEstimating GCP Costs with the Pricing Calculator

A financial technology company uses the Google Cloud Pricing Calculator to model monthly compute expenses for a batch processing workload running on standard Compute Engine virtual machines. The workload executes for 4 hours each night, totaling 120 hours over a standard 730-hour billing month.

How will the Google Cloud Pricing Calculator apply Sustained Use Discounts (SUDs) to this Compute Engine estimate?

  1. The calculator will not apply Sustained Use Discounts because the workload runs for less than the 25% monthly usage threshold (~182.5 hours) required to qualify for SUDs.Answer
  2. B
    The calculator will automatically apply a prorated Sustained Use Discount because the instances are launched on a daily recurring schedule.
  3. C
    The calculator will convert the compute cost to Spot VM pricing automatically once total monthly runtime exceeds 100 hours.
  4. D
    The calculator requires selecting GKE Autopilot management mode in order to enable automatic Sustained Use Discounts for non-continuous Compute Engine workloads.

Answer

The Google Cloud Pricing Calculator will not apply Sustained Use Discounts because the total runtime of 120 hours is below the 25% monthly usage threshold (~182.5 hours) required for SUD eligibility.
Google Cloud Sustained Use Discounts (SUDs) automatically apply to Compute Engine instances that run for more than 25% of a billing month (~182.5 hours based on a 730-hour month). Because the batch workload runs for 4 hours per day for 30 days, total runtime is 120 hours. Since 120 hours is below the 25% threshold, the Pricing Calculator correctly estimates costs at the baseline hourly rate without applying SUDs.

Step-by-Step Solution

1
Determine total monthly hours used in the cost estimation scenario.
4 hours/day * 30 days = 120 hours per month.
Cumulative instance runtime determines eligibility for automatic sustained use discounting.
2
Calculate the sustained use discount threshold percentage for a standard GCP billing month (730 hours).
25% of 730 hours = 182.5 hours.
Google Cloud Compute Engine requires instances to run for more than 25% of the month before SUD discounts begin to accrue.
3
Compare workload runtime against the SUD eligibility threshold.
120 hours < 182.5 hours, so 0% SUD discount is applied in the calculator.
Workloads falling below the 25% threshold incur standard baseline hourly rates without automatic sustained use discounts.

Key Concept

Compute Engine Sustained Use Discount (SUD) Threshold Mechanics
Estimated Time:1m 30s
Rate this question