Discount Prices by Cloud Provider

Cloud providers offer significant discounts when you commit to a minimum level of usage for one or three years. The Commitments engine automatically purchases and manages these commitments on your behalf. This page lists the standard discount ranges by provider and commitment type.

All percentages below are relative to on-demand (pay-as-you-go) pricing. Actual discounts vary based on instance type, region, term length, and payment option. Longer terms and more upfront payment yield deeper discounts.

AWS

Commitment type	1-year discount	3-year discount	Applies to
EC2 Reserved Instances (Standard)	30% to 40%	Up to 72%	EC2 instances in a specific family and region
EC2 Reserved Instances (Convertible)	20% to 30%	Up to 66%	EC2 instances with flexibility to change family
Compute Savings Plans	20% to 30%	Up to 66%	EC2, Lambda, Fargate across any region or family
EC2 Instance Savings Plans	30% to 40%	Up to 72%	EC2 instances in a specific family and region
RDS Reserved Instances	25% to 40%	Up to 65%	RDS databases (MySQL, PostgreSQL, Aurora, SQL Server, Oracle)
ElastiCache Reserved Nodes	25% to 35%	Up to 55%	ElastiCache for Redis and Memcached
Redshift Reserved Nodes	25% to 35%	Up to 65%	Amazon Redshift clusters
OpenSearch Reserved Instances	25% to 35%	Up to 55%	Amazon OpenSearch Service domains
SageMaker Savings Plans	20% to 30%	Up to 64%	SageMaker training and inference

AWS discounts vary further by payment option:

Payment option	Discount level	Cash flow impact
No Upfront	Lowest discount	No upfront cost. Billed hourly at the discounted rate.
Partial Upfront	Mid-range discount	Pay a portion upfront, remainder billed hourly at a reduced rate.
All Upfront	Highest discount	Pay the full term upfront. No hourly charges.

GCP

Commitment type	1-year discount	3-year discount	Applies to
Resource-based CUDs (general purpose)	37%	Up to 55%	Compute Engine VMs with specific vCPU and memory in a region
Resource-based CUDs (memory-optimized)	37%	Up to 70%	M1, M2, M3 memory-optimized VMs
Spend-based (Flex) CUDs	28%	46%	VMs, GKE, Cloud Run, and other eligible compute
GKE Autopilot CUDs	20%	45%	GKE Autopilot clusters
Cloud SQL CUDs	25%	Up to 52%	Cloud SQL instances

GCP CUDs do not require upfront payment. You are billed monthly for your committed amount regardless of actual usage.

Flex CUDs cover a broad range of compute services under a single commitment, including Compute Engine VMs, GKE Standard and Autopilot clusters, and Cloud Run services with instance-based billing.

Azure

Commitment type	1-year discount	3-year discount	Applies to
Reserved VM Instances	37% to 46%	60% to 72%	VMs in a specific family and region
Savings Plans for Compute	11% to 33%	32% to 65%	Compute across families, regions, and operating systems
Azure SQL Reserved Capacity	25% to 35%	Up to 65%	Azure SQL Database and Managed Instance
Cosmos DB Reserved Capacity	20% to 30%	Up to 65%	Azure Cosmos DB throughput
Azure Database for PostgreSQL	25% to 35%	Up to 65%	PostgreSQL Flexible Server

Azure Reservations can be combined with Azure Hybrid Benefit (AHB) for Windows Server or SQL Server workloads. AHB converts on-premise licenses with active Software Assurance into Azure compute discounts. When stacked, combined savings on Windows VMs can reach up to 80%.

How to read these ranges

The low end of each range typically represents a 1-year commitment with no upfront payment (or the most flexible commitment type). The high end represents a 3-year commitment with full upfront payment (or the most specific commitment type).

Pump's Commitments recommendation engine evaluates your usage and selects the commitment type, term, and payment option that maximizes your savings while minimizing over-commitment risk. You do not need to navigate these options yourself.

These numbers are approximate

Discount percentages are based on published cloud provider pricing as of mid-2026 and represent typical ranges across common instance types and regions. Exact discounts depend on your specific configuration. Your Savings Estimate will show the projected savings for your actual workload.