Explanation
This inefficiency occurs when workloads with predictable, long-running compute usage continue to run entirely on on-demand pricing instead of leveraging Committed Use Discounts. For stable environments, such as production services or continuously running batch workloads, failing to apply CUDs results in materially higher compute spend without any operational benefit. The inefficiency is driven by pricing choice, not resource overuse.
Relevant Billing Model
Compute Engine instances are billed at on-demand rates by default. Committed Use Discounts (CUDs) provide discounted pricing in exchange for a 1- or 3-year commitment to a consistent level of compute usage. Without CUDs, steady workloads incur higher on-demand costs.
Detection
- Review whether compute workloads run continuously or have stable baseline usage
- Assess whether current usage patterns indicate long-term commitment suitability
- Identify environments where compute demand is predictable across months
Remediation
- Purchase appropriate Committed Use Discounts for workloads with steady usage
- Align commitment size and term length with expected baseline demand
- Periodically reassess commitments to ensure they still match workload patterns