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Co-authored-by: Udam Dewaraja <[email protected]>
FinOps-Open-Cost-and-Usage-Spec · Oct 11, 2023 · 843107b · 843107b
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commit 843107b
Showing 1 changed file with 6 additions and 8 deletions.
diff --git a/specification/dimensions/commitmentdiscounttype.md b/specification/dimensions/commitmentdiscounttype.md
@@ -1,12 +1,10 @@
 # Commitment Discount Type
 
-A commitment-based discount is a contractual commitment in exchange for a discounted unit price. These discounts may be available for spend-based commitments or resource-based commitments, depending on the Provider's offerings.
+A commitment-based discount is a contractual commitment for an amount of usage or spend throughout a specified term, in exchange for discounted unit pricing on that amount. The commitment may be based on quantities of resource units or monetary value, with various payment options and time frames.
 
-This column determines whether the commitment is based on a minimum spend or minimum usage.
+Commitment Discount Type indicates whether the commitment-based discount identified in the CommitmentDiscountId column is based on usage quantity or cost (aka "spend").
 
-The CommitmentDiscountType column MUST be present in the billing data. This column must be of type String, MUST be null when CommitmentDiscountId is null, and MUST NOT be null when CommitmentDiscountId is not null.
-
-The CommitmentDiscountType MUST be one of the allowed values.
+The CommitmentDiscountType column MUST be present in the billing data. This column MUST be of type String, MUST be null when CommitmentDiscountId is null, and MUST NOT be null when CommitmentDiscountId is not null. The CommitmentDiscountType MUST be one of the allowed values.
 
 ## Column ID
 
@@ -18,7 +16,7 @@ Commitment Discount Type
 
 ## Description
 
-The type of commitment agreed to in exchange for the discounted unit price.
+Indicates whether the commitment-based discount identified in the CommitmentDiscountId column is based on usage quantity or cost (aka "spend").
 
 ## Content constraints
 
@@ -33,8 +31,8 @@ Allowed values:
 
 | Value      | Description                                                                                                                                                                   |
 |:---------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
-| Spend-Based    | Commitments are purchased and measured in terms of the dollars per hour of equivalent on-demand spend.                                                                    |
-| Usage-Based | Commitments are purchased and measured in terms of the underlying resource usage.                                                                                              |
+| Spend-Based   | Commitment-based discounts that require a predetermined amount of spend.    |
+	| Usage-Based   | Commitment-based discounts that require a predetermined amount of usage.     |
 
 ## Introduced (version)