DBCU Plans is costlier vs Job Compute Premium 0.30 per DBU Please justify

[Amit_Dass_Chmp]

Please help me to understood the % of savings how Databricks are calculating DBCU

They are telling if I take DBCU 12500 plan the price will be with discount 12000 and 4% discount.

That means if I consume 12500 DBU, I am paying for this $12000 and 4% saving means without pre purchase it should be $12500, so that means 1$/DBU

but in JC I can get 0.3$/DBU.

Please help me to understand this on what basis DB calculating % of savings

[Kaniz_Fatma]

Hi @Amit_Dass_Chmp, When Databricks offers a discount on Databricks Commit Units (DBCU), they are essentially providing a reduced price for pre-purchasing a certain amount of Databricks Units (DBU) for a specified term (e.g., 1 or 3 years). Here’s a breakdown of how the savings calculation works:

1. Pre-purchase Discount: If you pre-purchase 12,500 DBCUs for $12,000, you get a 4% discount. Without the discount, the cost would be $12,500 (since $12,000 is 96% of $12,500).

2. Cost per DBU: With the pre-purchase, the cost per DBU is calculated as: [ \text{Cost per DBU} = \frac{\text{Total Cost}}{\text{Total DBUs}} = \frac{12000}{12500} = 0.96 \text{ USD/DBU} ]

3. Pay-as-you-go (PAYG) Rate: The standard PAYG rate without any pre-purchase discount is $1 per DBU.

4. Savings Calculation: The savings percentage is calculated based on the difference between the PAYG rate and the pre-purchase rate: [ \text{Savings} = \left( \frac{\text{PAYG Rate} - \text{Pre-purchase Rate}}{\text{PAYG Rate}} \right) \times 100 = \left( \frac{1 - 0.96}{1} \right) \times 100 = 4% ]

Regarding the $0.3/DBU rate you mentioned for JC (Jobs Compute), this is likely a different pricing tier or a specific discount for a particular workload. Databricks offers different rates for various workloads and tiers, such as All-Purpose Compute, Jobs.... The $0.3/DBU rate might be specific to Jobs Compute under certain conditions or discounts.

To summarize, the 4% savings is calculated based on the difference between the standard PAYG rate and the discounted pre-purchase rate. The $0.3/DBU rate you mentioned could be a special rate for a specific workload or tier.

Does this help clarify things? Feel free to ask if you have more questions!