Services / Cloud cost optimization / Cloud commitments compared

CLOUD COMMITMENTS COMPARED

Every cloud discount is a commitment. They are not the same commitment.

AWS, Microsoft and Google all offer lower rates for committed spend. What counts, what is flexible and what happens if you fall short differ from one to the next.

AWSPrivate pricing agreements
AzureConsumption commitments (MACC)
Google CloudCommitted use discounts

Presented by the Deal IQ team  ·  Updated September 2026

How each provider structures it

  1. AWS

    Private pricing agreements

    A discount across AWS services in exchange for a committed annual spend over a multi-year term. Shortfalls are typically still owed, and Enterprise Support is commonly required.

  2. Azure

    Microsoft Azure Consumption Commitment

    A committed Azure spend over a term, on an EA or Microsoft Customer Agreement. Eligible Marketplace purchases count toward it, and a shortfall at the end is charged as an Azure prepayment credit.

  3. Google

    Committed use discounts

    Resource-based commitments to specific capacity in a region, or spend-based commitments across eligible services, at 28% off for one year or 46% for three. CUDs cannot be canceled. Larger customers also negotiate custom agreements.

Where they differ

  1. Scope

    What counts toward the commitment

    Marketplace purchases, AI services and support are treated differently by each provider and by each agreement.

  2. Flexibility

    How spend can move

    Some commitments apply across services and regions, others to specific capacity. Google's June 2026 change made resource-based CUDs shareable across the billing account by default.

  3. Shortfall

    What happens if usage falls behind

    AWS typically invoices the shortfall, Azure converts it into prepayment credit, and Google CUDs are billed for the full term.

  4. Leverage

    What else is on the table

    Microsoft commitments often sit alongside Microsoft 365 and the wider EA. AWS and Google commitments are usually negotiated on cloud spend alone.

What it means for buyers

The headline discount is the easiest number to compare and the least useful on its own. The size of the commitment, what counts toward it and the shortfall terms decide what a commitment actually costs, especially as AI workloads grow and move faster than forecasts.

Where Deal IQ comes in

This page covers how the pricing works and where the cost builds. Getting a better price on your own contracts is the negotiation itself. Deal IQ negotiates cloud commitments with AWS, Microsoft and Google, as part of $20B+ in contract value negotiated across 3,000+ negotiations with 600+ vendors. Our negotiators work with a network of 350+ former vendor sales, pricing and deal desk leaders, and we negotiate directly with the vendor or behind the scenes with your team. Our fee comes from the savings.

Frequently asked questions

What is the difference between an AWS commitment and an Azure MACC?

Both trade committed spend for lower rates. An AWS private pricing shortfall is typically invoiced, while an Azure MACC shortfall is charged as an Azure prepayment credit. What counts toward each depends on the agreement.

Can Google Cloud committed use discounts be canceled?

No. CUDs run for their full one- or three-year term.

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