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It looks like the play here is to get a bunch of small, committed workloads that GCE can move around where they've got spare capacity. On-demand pricing is very similar to the existing n1 type, but 1yr committed discounts are 30%+ cheaper.

More details from when I was working through it: https://twitter.com/fredwulff/status/1204861220165017600

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Disclosure: I work on Google Cloud.

Your analysis is close, but the on-demand (per second) pricing is also a lot less expensive. You should think of it as:

- Less than a full month w/o commitment => E2 up to ~30% cheaper (particularly for say 273 minutes per month or something).

- Full month w/o commitment => Roughly identical.

- Full month with a 1-year or 3-year commitment => E2 ~30% cheaper.

I wish it was simply flat 30% cheaper. It is very misleading that 0.99% of month will be 30% cheaper than a full month, considering that Google Cloud is advertising sustained usage discounts everywhere.

Sustained usage has tiers. So .99% of a month would only be like 1% cheaper.

I think your analysis is spot on, thanks for sharing.

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