Customer-friendly GCP Pricing: Understanding GCP pricing (Level 100)
Hi. My name is Neil Mueller with Google cloud platform we're. Here as part of the on-air cloud, series, is, a series of live webinars for Google cloud today. We're hosting two webinars my. Webinar on pricing, and then Sergey and team will join me after five minutes five minutes when I'm finished to, talk about streaming, analytics also. Next month something to look forward to we'll be talking about security, and IT development, tools okay. Without. Further ado let's talk about customer, friendly GCP. Pricing. I've. Got a lot of ground to cover today but, let me spend a few minutes on why we're here we're, here because customers, are really excited about the cloud but, unfortunately, a number of customers feel like they're, they're wasting money now, fortunately, most of these cloud customers are not ours and we'll talk about that in a moment but, according to right scale which is a third-party analyst firm they were to report called the state of the cloud in 2017. And they. Said that 45% of their, cloud spen was, wasted. This, is self-reported, waste so. You. Want to believe it on the left-hand side you see the. Cause of a lot of this waste, we've. Got inflexible, three-year, VM leases that are provided by other cloud providers, inflexible. VM configurations. Where you have to buy a certain amount of RAM to get a certain amount of CPU also, something. Not. On our cloud but on every other cloud and. Per our billing, as, opposed to what we have in here in GCP which is per minute billing so. Customers, are feeling like they're wasting, a lot of money on the cloud at the same time that they're saving a lot of money because the cloud is much, less expensive than on-prem alternatives, we're, here to give you the best of both worlds to give you a cloud that is exactly, what you expected to pay for with, customer friendly pricing, models that you can really easily understand. So. This is a summary slide we'll come to it at the very end also if. You look on the Left we've got other cloud providers let's consider that a baseline of a hundred percent what, you would expect to pay on. The right hand side we've, got the discounts, that discount innovations, that we have here at GCP and we'll talk through each of those so, an average of 24 percent savings, assisted from sustained use discounts, this, is very similar to the. Card that you get when you go to your favorite, sandwich shop and if you ten sandwiches, they, give you one for free sustained, use discount when you lose it when you use a lot of GCP you, save a lot on GCP.
21. Percent list price differences, this is just a rack rate of our, compute, if you look at the the, list price we are on average 20 percent less than other cloud providers and I'll talk to you a bit more in a few minutes about why that's the case. 15 percent average savings from right sizing recommendations, we recommend. Within. The cloud, console if you're using too much or too little compute, we recommend that you can either save money or you should be puffy puffs beefed, up that server to. Make it more. Performant. On. Average if you add those numbers together you, get a 60% average, discount when. You compare us to other clouds, that's. A big discount. All. Right, let's talk about all of our pricing, innovations, this. Slide, is very much a table of contents for my talk we're gonna start in the upper left and work our way down to the lower right so. Let's talk about, list. Price advantages, I've talked to you about how that we get a 21% average. List price reduction, compared to other clouds a sustained, use discounts, the, lunch counter our card up. To 24% average, savings committed. Use discounts, up to 57%, savings, when you buy. Instances. In advance when you commit to their use per. Minute billing up to 38% savings, when, you pay, per. Minute and not per our custom. Machine types up to 19% savings, because, you don't have to if you need a lot of RAM and but not a lot of CPU, you, can only pay for exactly what you want we. Call that custom machine types right. Sizing recommendations, 15%. Average savings we. Give you recommendations on. Whether. You you. Need more CPU or more RAM. Preemptable. VM instances, we, call these PMS, and we, give you an. Average eighteen percent savings, on workloads that can be interrupted, network. Service tears our newest, addition we just launched it last week it allows you to either pick performance, or cost, savings when you when, you buy your network from us cold. Line archival. Storage at the speed. Of tape and. The. Speed of disk and the cost of tape. And, lastly. Support. We offer you the opportunity to, pay per user per month as opposed, to a flat, percentage. Fee uplift, on your on your cloud cost. Okay. Let's, talk about why GCP is the perennial price, leader. Well. It has a lot to do with our volume, google. Has a lot of infrastructure, you probably used YouTube in Google search you. May have also used Google cloud platform we. Are a very large technology, company with a lot of infrastructure we, buy in bulk we purpose build much of our infrastructure, we, spent more last year than any other cloud provider ten, point nine billion in capex in 2016. Google's, vast scale means that we can offer you more, for less. We. Also are smart about how we build our infrastructure, on average, a Google Data Center uses 50 percent less energy than a typical data center our PUA. Which, is a measure of our of our efficiency, our power usage effectiveness is, one point one to lower, than any other public cloud provider this, means that we use less, energy than. Average, if you look at the global average of the largest data centers in the world there are 1.7, now what this means is, that about, 40%, of the, average energy and in a datacenter is wasted. To cooling or heating or just general loss by, comparison about 10% of the energy and a Google Data Center is wasted, meaning 90%, of the energy that we buy goes. To providing you cloud services, we're more efficient when we run our datacenters and we can pass the savings on to you. We're. Also more. Efficient because we deploy very interesting technologies, like machine learning you, may have seen the article written about deepmind who applied some of their technology to our data center and if you look on this graph right here time is on the x axis on the, y axis is PUA this, power use effectiveness, ratio that I told you about the. Closer you are to one the, better. Google. Is closer to one than other average data centers and when we deploy deep Minds AI in our data center it reduced cooling by 40% so. You. Can imagine what this ml, looks like is we've got let's, take for example we've got like 10 dials, and each dial has 10 10.
Positions On it that's 10, to the 10th power or 10, million that's. A lot of instance. Is to calculate through which is exactly what deep mind is calculating, through and finding, the exact right middle ground where, we can safely operate our data centers and also simultaneously reduce, cooling this. Allowed us to reduce the cooling bill by 40 percent. We're. Not the only one noticing, greenpeace gave. Us an a other. Cloud providers in the space didn't. Get an A we, earned this as a result of energy transparency, committing, to being a hundred percent renewable, by 2017. And. Our. Green, advocacy, that, we do. We. Think our data centers are beautiful inside and outside in fact this is one of our murals that we have if. You send me a tweet and you're the first person to send it to me I'll send you a $25, Starbucks, gift card this, is part of our mural project. We. Paint many of our data centers with, murals just, ten be the state name via Twitter and I'll send you that gift card. This. Is a very large data center. Alright. Let's talk about sustained use discounts, this is the sandwich, car that I talked to you about so. If this is the neck on, the x-axis here we have the, monthly average usage and so if you use a, hundred. Percent of this VM for the entire month you can get 30, percent, savings. We're, seeing our customers experiencing. An average of 24 percent average savings, because many of our customers use that VM for the entire month in other words they're getting a lot of free sandwiches. What. Sustained use provides is if you use us more we, will give you a lower price this is automatic, there's no upfront payments, required there's no lock-in and there's no complex decision-making. You, don't even have to remember the sandwich card for, us to give you the discount so it really is just that easy. You. Might be wondering we. Use terms like customer, friendly pricing, but are we really that friendly when we're doing the calculation, of sustained use discounts, I can tell you yes we are if you look at the graph on the lower left you, can, imagine in the actual use case where you've got a whole bunch of VMs. And a whole bunch of projects, across. A across. Your. Your entire organization what, we could what we could do is we could. Not be friendly about it and we could calculate your, actual usage and say that you hadn't used a single VM the, entire month but. That's not how we calculate, it what we do is we have this technology this technique that we call inferred, instances, where, if you look in the middle where we group them we group all of the instance usage together and then on the far right we compute, a discount based on that so, we we put them together in a way. That. Looks like a very successful tetris game which gives you the maximum possible sustained, use discount truly. Customer friendly pricing. Okay. Let's talk about cut committed. Use discount, with. This but this is is when you buy cores, and memory and bulk you can either select to use a one-year or a three-year, commitment and you can change your machine types at, any time if you do this with us for, one year or for three years we'll give you up to a fifty seven percent discount. Big, discount. So. What, you're doing here is you're buying cores in memory in bulk if. You buy for one year it's a thirty seven percent savings, if you buy it for three years it's a fifty seven percent savings. If. You. Compare this to other similar, offerings, in the cloud space for, example AWS, is reserved, instances, this, is again a report from a company called RightScale they're, a third party advisory, firm out there and this is a report that they did very recently in March when we released, committed use discounts, we.
Are The blue block. In, this case lower is better because we're talking about price and costs, so, because, of the digit, rigidity, of the AWS, our eyes and the flexibility, of the committed use discounts, the realized benefit, for you is, much higher in this case the, costs are much lower. Okay. Let's. Get into a bit more detail about committed, use discounts, like, I said these available in one and three year you. Commit to a certain number of V CPUs and a certain amount of memory this. Is valid for any Google, cloud compute. Engine or gke. Non shared core, VMs, and. It's, ideal for predictable. Steady-state, workloads. I said, that it's a committed use on CPU, and also, memory. There, are very flexible limits, on the ratio between memory. And CPU, so, anything from 0.9, gigabits, of RAM up to, 6.5, gigabits, of RAM per CPU, inclusive, those two numbers is an appropriate ratio so, if you've got a very memory, intensive application, that doesn't require much CPU committed. Use discounts, it's still gonna be good for you the. Disk out supplied to aggregate regional, usage for example all of your Restall of usage in Iowa or Oregon or London. Okay. This, is a summary slide talking about committed use discounts, what I want to highlight here is the, very far right block, which, says that in order to attain these deep discounts, without upfront payment, in order you can attain these deep discounts without upfront payments, at all because, we don't require you to do any upfront payments, this is very different from other. Reserved instance type, structures. That you see there in the cloud. Per. Minute billing. Okay. So, I'm DCP. You only pay for what you use so, for example if you're using a VM for only 11 minutes you're, gonna pay for 11 minutes not 60 minutes this, is a big differentiator with other from other cloud providers. Let's. Walk through a short example so. On the right here you see that if you're using the the, virtual, machine for between 12 and 25 minutes your average savings is up to 38 percent. Custom. Machine types. If. You go with another cloud provider you will be dictated, a certain amount of CPU, and memory, and if you need more CPU, or less, CPU. You. Have to pay for the stuff that you don't use so, right here on the x-axis you've got a series of machines and the, gray would be waste, in. This. Case on GCP the, the waste would be much much less on average we're seeing customers save up to 19 percent, when. They use custom. Machine types. This. Is a screenshot that I took from the user interface, we've. Got these dials, where you can dial up the amount of cores or, the amount of memory that you want and we, did the math and it turns out that there's, 690. Different, compute types if. You compare that to other cloud providers we, have a hundred and ten more compute types than they do so, it really is you. Know you get exactly what, you want and, and nothing more. Right. Sizing recommendations, this, is very similar to custom machine types. What. This looks like in the user interface is a recommendation, where it says hey you're using a bit more instance, compute. Then, you. Have purchased would you like to upgrade or in, more cases than that you. Have purchased an instance type that is larger than you need and you're paying for something that you're not using would you like to save yourself a little money and all, you have to do is click, the button right here to either dismiss all those recommendations, or to. Learn more and with, one click you can activate them it's, the opposite, of requiring you to plan in advance for, demand, that you can't possibly forecast. 25%, of of. Monitored. Instances, get a recommendation on, average, so, that's a lot it'll be a good portion of your instances now, you can very easily dismiss, these or or take action.
Recommendations. Take, take. A look at CPU and memory on. Average we're seeing 60%. Of those recommendations offering, to save you money and 40%, offering, to increase, your instance size to give it absolutely suggest that you get a big a beefier instance because you're getting a more traffic than you then, you may have expected, if. You use stack driver the, the, the. Granularity, of these recommendations improves. Quite a bit. Let's. Talk about preemptable, machine types. Preemptable. Machine types are very good for workloads, such. As batch or scientific. Predictable. Workloads that you don't think we're going to go down they're, exactly. Like regular VMs except. For they are eighty percent less expensive, they. Can run for a maximum, of 24 hours at which time they'll, be shut down. You. Can terminate them earlier if, you like, and. It. Offers predictable, billing compared to other cloud providers that have similar structures, like this but they're based on marketplaces where. You would have to hire somebody to go into that marketplace and understand, the. Flow price of that machine, instance whereas, here it's just a flat 80%, off, so, much easier to forecast, we. View this as you know customer, friendly pricing. Like. I said they're very good for various. Kinds of workloads that you know. Might. Be able to be interrupted for, example batch jobs pipeline builds after I was processing big, data workloads analytics, media encoding scientific, work financial, modeling devtest, crawling. That. Kind of workloads. What, is most amazing about PDMS, is how easy they are to deploy I mentioned. With, other types. Of structures. Like this from other cloud providers you might need to hire somebody to go in there and understand the marketplace dynamics, of their, instance of their interruptible. Instances, not with ours they, are a flat 80%, price, reduction and you can either activate it using this code right here that I've got on the screen or.
In The cloud console with a point-and-click. Customers. Love these for. Example Mark, Johnson the founder, of Descartes Labs has, been able to predict, corn yield more. Accurately than the United States Department of Agriculture, all using, P VMs so he's benefiting from GCP at 80% the cost. And. Producing, incredible output, for his customers. Network. Service tiers last. Week we became the first major public cloud to offer a tiered cloud network. What. This means for you is that you can either. Choose. To pick, performance, which we call the premium, tier think, premium gasoline, if. You pick the premium tier it is on average 70% faster, than, other cloud networks, it. Is 14, to 80 percent more expensive than, other competing clouds and so, the ratio of 18. Percent more for 70% more power that's a that's a very good ratio we feel like it's a good value. For your money if. You pick premium you're riding on the Google Network which, is a non circuitous, direct, private dedicated, path from, your, cloud workloads, to your end customers aggressing. Out of a pop very near, to your end customers. If. You choose standard, you'll, benefit from a six to nine percent savings. Over other competing clouds, standard. Network uses, the public internet which is very similar to what other public clouds I will provide you, this. Is often, not a direct path it. Suffers, from lower, security, lower reliability but. It it's. A very good value for the money. Let's. Talk about storage. On. This graph on, the x-axis you see the, retrieval frequency, so, on the left you've. Got Glacier an. AWS, product that offers written. Retrieval. Frequency of three, to five hours it is, very, close to the same price as GCS, cold line which offers millisecond, access time we. Also offer a near line regional. And GCS, multi-regional, the, reason we've put. There of storage options next to ours is what you'll notice is hours are always below theirs, which. Means that we are less expensive for their retrieval time required. So. We think that our storage, is going to be a better value for online, data whether it's hot or cold whether you've got millisecond, access time that. You need globally, reliable, or or, less. Cold. Line is a highly available affordable, solution for backup archival, and disaster, recovery it, really is incredible we, offer you the. Speed. Of discs at the cost of tape. But. You might be asking yourself how am I going to get all my data up into the cloud well, for that we just launched something about, last month called, the transfer appliance, this is a physical, appliance that, we rent you for a window of time you, load your data onto it and then you send it back to us using a courier the, capacity, for this is up to one peda bit compressed it's the largest transfer. Appliance, in the cloud because. A lot of our customers are moving a lot of data to us and we wanted to give them as, much capacity as we possibly could. The, transfer appliance is all about speed in this. Animation what you're seeing is how fast it would take a transfer appliance, to be shipped out to you for, you fill it up and for you to send it back to us and ice to load it into Google Cloud storage on average, 43 days if you compare that over. A typical Network which is 100 megabits per second, it is, going to take a lot longer than 43, days as, you, can see it'll take multiple. Years pick, more than three years. Let's. Talk about what we're doing for support. Support.
Hasn't, Evolved. What. We are doing to evolve it is we're offering role, based support, what. This means is that you pay a flat, price, per user per month as opposed, to a, percentage. Fee, uplift on your cloud usage so, you might be accustomed to paying a, certain, percentage like 10 to 20 to 30 percent uplift, on your cloud usage, we. Are evolving that to this new method where, you pay a, flat, fee per user, per month so, let's take an example, let's. Say that you're a development, shop with 10 engineers that. Would be 10, engineers. Multiplied. By $100. Per user per month multiplied, by 12 so, that's $12,000. In annual support for. This development shop which. Is likely much much less and certainly, much much more predictable, than. If you were to pay a flat percentage fee on. Your on your cloud bill it also is a lot closer to getting, a value for your money because, we're charging you per engineer, as opposed, to charging you a percentage uplift. The, old model we, call a count based the new model we call role based account. Based you're accustomed to long-term contracts, standardized. Tiers and like, I said percentage, based uplift on your cloud bill with, role base you've, got a very flexible environment, that you can change month to month no. Commitments, very customizable, configurations. You tell us how many users. You want. And. It's very predictable because you know how many users you're buying. This. Is coming very soon and. We're incredibly excited about it it offers development, support production support, and also support for your business critical apps. Alright, let's talk about some key takeaways. If. We, start on the upper left we talked about why Google, was a perennial price leader we, operated, at a vast scale and we passed those benefits on to you on average, were 20% less than other cloud providers just. The rack rate. Sustained. Used discounts, just like when you go into a sandwich shop this, is up to 24% average, savings.
Committed. Use discounts, if you, are able to plan ahead and know that you're going to use us we don't make you pay up front but we offer you up to 57, percent savings. For, a three-year contract. Per. Minute billing up to 38 percent savings. By paying by the minute as opposed to paying by the hour the. Analogy I gave the example I gave was. Using. 11 minutes and paying for 60 very frustrating, we don't consider that customer friendly pricing, and so, we don't make you do it, custom. Machine, types up, to 19 percent average savings when you pick any configuration of CPU and RAM. Right. Sizing recommendations, 15. Percent average savings by auto-scaling compute, around your needs we, give you these recommendations. 60%. Of the time they're to reduce the size of the workload offering, you a savings 40, percent of the time on average there. For you to beef up your instance, and save, you downtime. Preemptable. VM instances, up to 80 % savings and this is a flat fee not based on a market place up to 80% savings, on workloads it can be interrupted like batch jobs or crawling or scientific, work, network. Service tears our newest member to this list where. You can pick performance, and get 70%, higher performance, than the average cloud provider or, savings. And save, 9 percent compared to other clouds. Cold. Line archival. Storage. And. The, transfer appliance which allows you to move lots of data to the cloud very quickly. Support. We, are evolving, support, and very excited about it with roll based support customers, pay a flat monthly fee per. User per engineer. Here's. That graph again let's. Talk about where. We where we've come so, another. Cloud provider on the Left will charge you a baseline, of a hundred percent. You, can experience an. Average of 60% savings, for compute workloads on, GCP. 24. Percent is coming from sustained use discounts, 21 percent from list price dis discounts, 15, percent from right sides and recommendations, big, benefits for you. Customers. Are picking GCP in part, because of our customer friendly pricing, but also for a lot of other reasons, on. The Left we offer you true cloud economics, that's all about the pricing we've walked through a number of examples where, we provide you very transparent. Friendly. Pricing, structures that, you can without. Taking a lot of time take, advantage of most, of these you take advantage of just. By using the system at all you don't have to plan ahead. We, offer you future, proof infrastructure, where you can scale your business smoothy, and responsibly, for example where the first cloud to offer Silverlake, Intel, chips and. You didn't have to plan for that you didn't have to you, know buy them a couple of years ago you can buy them the second that you want them and then the second you stop wanting to use them you, can stop paying for them big, advantages, that. You get from using the cloud. You. Can also get access to incredible, innovation, Google. Is known for our interface artificial intelligence and machine learning we, give you access to many. Of our API. S including, vision API natural. Language API bigquery. You. Can use these to really spark. Off a lot of innovation at your company and Google. Grade security. We. Offer multiple layers, of security so. That you can control your. Cloud from chip to chiller. Ok, with, that I think. I've, been told that we've got a couple of questions that I probably should help answer. You. Okay. I'm back I can, see on my screen here that we've got five questions to answer the. First one is where did the idea for sustained use discounts come from. It. Predates me here at Google I came. Up with a lunch counter example, because I eat sandwiches, and when. I buy ten of them I, get, a free sandwich and it sounds a lot like sustained use discounts, the, big difference between sustained use discounts and the. Lunch counter is that I'm always forgetting my little card and losing, it and that never happens because we keep track of it for you. Question. To our, DCP. Pricing innovations, only for compute, many. Of them are for compute right. Sizing recommendations. Sustained. Use discount committed use discount those are for compute. However. Many. Of them are not for, example cold line where, we offer you the. Speed of disk at the cost of tape, is. Very innovative and as a storage innovation, not a computer innovation, network. Service tears also. Is the opportunity for you to experience. 70%, faster networks than the average cloud provider or, nine.
Percent Lower costs, and, that's a networking innovation. Question. Number three can. I change my instance sizes and still, receive committed use discounts, yes. Unlike, other cloud providers that, offer you. Committed. Use discount structures, that are inflexible, hours. Are flexible so you buy a certain amount of CPU, and a, certain amount of memory and within, that, bundle, that, basket, you can change exactly the kind of VM configurations, that you want from. Minutes a minute day to day within. That within that month. Within. That year whether you whether it's a one-year or a three-year, committed, use discount the. Question for what. Is the difference between suds. And cuts. Sustained. Use discount let's. See if I can think of a funny analogy a. Sustained. Use discount is when, you go to the lunch counter and they give you one of those cards, and. If you eat. 10 of those sandwiches they give you a free sandwich committed. Use discounts, is when you go to the car wash and you, say I want to buy 10 car, I'm, gonna buy them right now, and then, I'm gonna use them over the next one. Year or three year and as a result you. You, get you know a cheaper, rate per carwash the, big didn't that analogy falls apart a little bit because we don't make you pay ahead and the carwash would, but. Other than that it's a decent analogy. Number. Five well right sizing recommendations, support, all operating. System compute instance types not just Linux, but Windows servers as well yes. It supports, all of the instances that we have I, use it on mine and. It gives me recommendations, for some reason for mine it's always telling me to make. Them smaller it never tells me to make them bigger maybe it's because I don't run that many popular websites hopefully. You you do and. It works. On on all of mine, Linux. And windows. Are. There any more questions guys. Okay. Thank. You so much for your time please, stick around our. Next webinar is on streaming. Analytics very, exciting Sergey and team will be here to, talk you through that next. Month, also we've got another, on-air. Webinar series by. Google cloud it's. On security, and IT development, tools ok. For now thank you so much your help. You.