- A
Sustained use discounts (automatically applied)
Why wrong: Sustained use discounts apply automatically for VMs running more than 25% of a month, but their maximum savings (30% for N2) are lower than 3-year CUDs.
- B
1-year committed use discount (CUD)
Why wrong: 1-year CUDs offer approximately 37% discount — better than SUDs, but less than 3-year CUDs.
- C
3-year committed use discount (CUD)
3-year CUDs for N2 VMs offer up to 57% discount compared to on-demand pricing — the highest available discount for stable, continuously-running workloads.
- D
Switching to Spot VMs
Why wrong: Spot VMs offer deep discounts but can be preempted at any time — they are not suitable for stable production workloads that must run continuously.
Question 723 of 1,000
hardMultiple ChoiceObjective-mapped
Maximize Cost Savings with 3-Year Committed Use Discounts for Steady Workloads
This ACE practice question tests your understanding of ace exam topics. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company runs a stable production workload on 20 n2-standard-8 VMs that run continuously year-round. Which pricing commitment maximizes cost savings on these VMs?
Quick Answer
The answer is the 3-year committed use discount (CUD). This is correct because for a stable production workload running 20 n2-standard-8 VMs continuously year-round, the 3-year CUD offers the deepest discount—up to 57%—compared to a 1-year CUD at roughly 20% or a sustained use discount (SUD) which maxes out at 30% for full-month usage. On the Google Associate Cloud Engineer exam, this question tests your ability to match pricing models to workload patterns: steady, predictable usage favors longer commitments, while variable workloads might benefit from SUDs or 1-year CUDs. A common trap is choosing the sustained use discount because it applies automatically, but for always-on VMs, the 3-year CUD locks in significantly greater savings. Memory tip: think “steady three” — steady workloads get the best price with a three-year commitment.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
3-year committed use discount (CUD)
The 3-year committed use discount (CUD) offers the highest discount rate (up to 57% for compute-optimized machine types) compared to 1-year CUDs (up to 20%) or sustained use discounts (up to 30% for running a VM the entire month). Since the workload runs 20 n2-standard-8 VMs continuously year-round, a 3-year CUD locks in the maximum savings for this predictable, steady-state usage.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Sustained use discounts (automatically applied)
Why it's wrong here
Sustained use discounts apply automatically for VMs running more than 25% of a month, but their maximum savings (30% for N2) are lower than 3-year CUDs.
- ✗
1-year committed use discount (CUD)
Why it's wrong here
1-year CUDs offer approximately 37% discount — better than SUDs, but less than 3-year CUDs.
- ✓
3-year committed use discount (CUD)
Why this is correct
3-year CUDs for N2 VMs offer up to 57% discount compared to on-demand pricing — the highest available discount for stable, continuously-running workloads.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Switching to Spot VMs
Why it's wrong here
Spot VMs offer deep discounts but can be preempted at any time — they are not suitable for stable production workloads that must run continuously.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Google Cloud often tests the misconception that sustained use discounts are always the best option for long-running workloads, but candidates must recognize that committed use discounts provide significantly higher savings for predictable, continuous usage, especially with a 3-year term.
Detailed technical explanation
How to think about this question
Committed use discounts in Google Cloud are applied at the project level based on vCPU and memory usage in a specific region, and they stack with sustained use discounts for additional savings. The 3-year CUD typically offers a 40-57% discount for general-purpose machine families like N2, while the 1-year CUD offers 20-30%. For a workload with 20 n2-standard-8 VMs (each with 8 vCPUs and 32 GB memory), the total commitment would be 160 vCPUs and 640 GB of memory, and the 3-year CUD provides the best cost optimization for this predictable, long-term usage pattern.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this ACE question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: 3-year committed use discount (CUD) — The 3-year committed use discount (CUD) offers the highest discount rate (up to 57% for compute-optimized machine types) compared to 1-year CUDs (up to 20%) or sustained use discounts (up to 30% for running a VM the entire month). Since the workload runs 20 n2-standard-8 VMs continuously year-round, a 3-year CUD locks in the maximum savings for this predictable, steady-state usage.
What should I do if I get this ACE question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 2026
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