A commitment you can’t cancel
CUDs run for the full one- or three-year term. If workloads move or shrink, the commitment is still billed.
How Google prices an enterprise deal
Google Cloud is priced on consumption, with public list prices for each service by region: compute by the hour, storage by the gigabyte-month, BigQuery by data scanned or by reserved capacity. Most large customers pay less through committed use discounts, or CUDs, with a negotiated Google Cloud agreement on top.
Resource-based CUDs commit to specific vCPUs, memory or GPUs in one region. Spend-based, or flexible, CUDs commit to an hourly spend that applies across eligible Compute Engine, GKE and Cloud Run usage: 28% off for one year and 46% for three. Either way, the commitment runs for the full term and cannot be canceled.
Sustained use discounts apply automatically, but only to older machine families such as N1 and N2. Newer families such as E2, C4 and N4 have no automatic discount, so moving to them without a commitment raises the effective rate.
Google Workspace is priced per user per month. Business plans have public list prices, and Enterprise plans are quoted. Alphabet’s fiscal year matches the calendar year, and October to December is when it closes its year.
What has changed recently
- Jan 2025
Gemini bundled into Workspace
Google folds Gemini into Workspace Business and Enterprise plans, retires the $20 and $30 Gemini add-ons and raises plan prices. Business Standard moves from $12 to $14 per user per month for new customers.
- Mar 2025
Existing Workspace customers repriced
Existing customers on monthly plans move to the new prices on March 17, 2025. Annual and fixed-term plans move at their next renewal after that date.
- Jan 2026
Spend-based CUDs change model
Google moves spend-based CUDs from credits to discounted per-SKU prices, with the hourly commitment now stated at the discounted price. Coverage expands to more services, including Cloud Run and memory-optimized VMs.
What moves a Google renewal
A Google renewal is priced across cloud commitments and Workspace seats, and several things move the number at once.
CommitmentA discount tied to spend or resources the business has to use
Machine familyOlder families get automatic discounts, newer ones do not
WorkspacePer-user pricing with Gemini built into the plan
AI usageGemini and agent workloads billed on tokens and compute
Each of these changes what the business actually pays against the published rates. Knowing which one is moving the number is the starting point.
Where a Google renewal gets expensive
Discounts lost in a migration
Moving from older machine families to newer ones gives up the automatic sustained use discount. Without a commitment in place, the effective rate goes up.
AI in the Workspace price
Gemini is now part of the Business and Enterprise plan price. Teams that don’t use it pay the same rate as teams that do.
AI usage that is hard to forecast
Gemini and agent workloads are billed on tokens and compute. Usage that grows faster than planned shows up on the bill before it shows up in the budget.
Deal IQ knows what’s happening across major vendors, from sales strategies to leadership changes, as it happens.
A PROPOSAL, NOT A RATE CARD
Google publishes its commitment discounts. It doesn’t publish your deal.
Google lists its committed use discount rates. What a large customer pays beyond them is set in a negotiated agreement, and the first offer reflects what Google expects you to accept, not the lowest rate it will approve.
What well-prepared buyers do before a Google renewal
Start 6 to 12 months out
A renewal that starts close to the end date runs on Google’s timeline.
Size commitments on real forecasts
Build them from actual run rates and planned workloads, including AI.
Check your machine families
Know which workloads rely on sustained use discounts today.
Review your Workspace editions
Know which plan each group is on and what it now includes.
Know where you fall in Google’s year
Alphabet’s fiscal year ends December 31. October to December is when it closes its year.
DEAL IQ ON GOOGLE CLOUD
We know how Google decides.
Google publishes its list prices and commitment rates, but not what it agrees to on top of them. Our network of 350+ former vendor sales, pricing and deal desk leaders includes people who sold Google Cloud and know how those numbers are put together. We pair that with our own Google pricing data and a 32-factor assessment on every deal, then negotiate directly with Google or behind the scenes with your team.
Savings come from the price. Same products, same quantities, same scope.
DEAL IQ EXPERIENCE WITH GOOGLE CLOUD
75+Google negotiations
$725M+in Google contract value negotiated
350+former vendor sales, pricing and deal desk leaders in our expert network, including people who sold Google Cloud
Frequently asked questions
What is a Google Cloud committed use discount?
A lower rate in exchange for a one- or three-year commitment, either to specific resources or to a minimum hourly spend. The commitment runs for the full term and cannot be canceled.
What is the difference between resource-based and flexible CUDs?
Resource-based CUDs commit to specific vCPUs, memory or GPUs in one region. Flexible, spend-based CUDs commit to an hourly spend that applies across eligible Compute Engine, GKE and Cloud Run usage, at 28% off for one year and 46% for three.
What changed with spend-based CUDs in 2026?
From January 21, 2026, spend-based CUDs show as discounted prices on each SKU instead of credits, and the hourly commitment is stated at the discounted price. Google says existing contracted rates are unchanged.
Which machine types get sustained use discounts?
Only older families, such as N1, N2, N2D and C2. Newer families such as E2, C4 and N4 have no automatic discount, so a commitment or Spot pricing is the only way below on-demand rates.
Did Google raise Workspace prices for Gemini?
Yes. In January 2025, Google bundled Gemini into Workspace Business and Enterprise plans, retired the separate Gemini add-ons and raised plan prices. Existing customers moved to the new prices from March 17, 2025, or at their next renewal.
Can we buy Workspace without Gemini?
Not on Business Standard and above. Gemini is part of the plan and the price. Admins can turn features off, but the price stays the same.
When does Google’s fiscal year end?
December 31. Alphabet’s fourth quarter runs from October through December.
Is Google’s “best and final” offer really final?
Best and final is a sales position, not a floor. It reflects what the account team expects you to accept, not the lowest price Google will approve.
Do we need to cut usage to get a better Google price?
No. We negotiate the price of what you use. Services, usage and scope stay the same.
Has Deal IQ negotiated with Google before?
Yes. More than 75 Google negotiations covering $725M+ in Google contract value, with a network that includes people who sold for Google Cloud.
How does Deal IQ charge for a Google negotiation?
No savings, no fee. We agree the starting price with you before we negotiate, and our fee is a share of the improvement against it.
DEAL IQ IN NUMBERS
$20B+contract value negotiated
3,000+negotiations
100Net Promoter Score
4.7/5client rating for delivering savings
$0fee if there are no savings
NPS and rating from independent client research by Plural Strategy Group, 2026.What our clients say →