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D6 · Cloud financial operations

Cost management in Google Cloud

Billing, budgets and alerts, discounts (SUD, , ), Google Cloud Pricing Calculator, and FinOps on GCP.

Billing structure in GCP

GCP organizes billing in a hierarchy: the Billing Account pays for one or more . An organization can have multiple billing accounts.

Organization
↓
Billing Account (can have multiple)
↓
Projects (one project → one billing account)

Cloud Billing

Console for viewing invoices, exporting cost data to , managing payment methods, and viewing payment history.

Cost Table

Detailed view of costs by project, service, or SKU over a period. Exportable to CSV.

Budget Alerts

Define budgets and receive alerts when actual or forecasted spend exceeds certain thresholds.

Billing Export → BigQuery

Exports detailed billing data to BigQuery for advanced analysis with SQL, Looker Studio, etc.

Types of discounts in Google Cloud

Sustained Use Discounts (SUD)

Automatic discounts for VMs that run for more than 25% of the month; the discount grows the longer the VM runs. No upfront commitment — GCP applies them automatically on the invoice.

Full month on N1: up to 30% discount
Full month on N2, N2D or C2: up to 20% discount
Applied automatically, no upfront commitment
Does not apply to Spot VMs, E2 or Tau T2D

Committed Use Discounts (CUD)

A commitment to purchase resources for 1 or 3 years in exchange for significant discounts. Two types: resource-based (vCPUs/memory) or spend-based (committed $).

1 year: up to 37% discount
3 years: up to 55% discount (70% on memory-optimized)
Resource-based: commit specific vCPUs and GB of RAM
Spend-based: commit to a minimum monthly spend

Spot VMs

Low-cost VMs that GCP can interrupt with 30 seconds notice when it needs the capacity. They replace the older preemptible VMs (which lasted at most 24h): no time limit, but still interruptible.

Up to 91% cheaper than normal VMs
Perfect for: batch jobs, rendering, ML training, simulations
Do not use for: web servers, databases, stateful apps
Preemptible is the older version; Spot is recommended today

Tools for controlling costs

ToolWhat it does
Google Cloud Pricing CalculatorEstimates the monthly cost before provisioning resources. You configure the services you plan to use and get a breakdown of estimated costs.
Budget AlertsDefine budgets and receive alerts (email, Pub/Sub) when actual or forecasted spend exceeds 50%, 90%, or 100% of the budget.
RecommenderAutomatic suggestions to optimize resources: remove idle VMs, downsize underutilized VMs, remove unused reserved IPs.
Cost BreakdownCost breakdown by project, label, region, or service. Helps identify what generates the most spend.
Labels and TagsTag resources (VMs, buckets, clusters) with metadata (team, environment, project) to attribute costs in the invoice exported to BigQuery.
Quotas and limitsSet maximum resource usage limits to avoid unexpected costs from runaway scripts or misconfigurations.

FinOps: cloud financial management best practices

Rightsizing

Adjust VM size according to actual usage. Compute Engine Recommender identifies over-provisioned VMs. Downsize from n2-standard-8 to n2-standard-4 if average CPU is <20%.

Remove orphaned resources

Unattached static IPs, disconnected persistent disks, old snapshots, load balancers with no traffic. They generate cost even when not actively used.

Use managed resources

, Cloud Spanner, and BigQuery scale and shut down based on usage. Always-on VMs have a fixed cost. Prefer over where possible.

Multi-tier storage architecture

Active data in Standard, monthly data in Nearline, yearly data in Coldline, archived files in Archive. Up to 95% reduction in storage cost for cold data.

Sustainability with Google Cloud

Google matches its annual electricity use with purchases of renewable energy, and its data centers are among the most efficient (PUE close to 1.1). By 2030, Google aims to operate on 24/7 carbon-free energy across all its datacenters.

Using Google Cloud instead of an datacenter can reduce the carbon footprint of computing workloads by up to 90%.

100% renewable energy

Google has matched 100% of the energy it consumes with renewable energy purchases (Power Purchase Agreements) since 2017. It is the largest corporate purchaser of renewable energy in the world.

Carbon Footprint Tool

A free tool in the GCP console that shows the carbon emissions of your workloads (scopes 1, 2, and 3). Lets you identify which projects and services generate the most emissions.

Net zero goals 2030

Goal: operate on 24/7 carbon-free energy by 2030. Not just buying offsets — but ensuring that when you use GCP at 3am, the energy it uses is genuinely renewable at that moment.

Efficient PUE

Google's average PUE (Power Usage Effectiveness): 1.10. The industry average is 1.58. This means Google uses only 10% extra energy for cooling, while the industry uses 58%.

Circular economy in hardware

Google maximizes the useful life of its datacenter hardware and reuses or recycles components at end of life. Custom chip design (Titan, TPUs) for greater energy efficiency.

For the CDL exam: sustainability as a competitive advantage

Google Cloud positions sustainability as a business benefit, not just an environmental one. Companies with ESG (Environmental, Social, Governance) goals can use GCP to meet their emissions reduction targets and report them with the Carbon Footprint Tool. It is a differentiator against AWS and Azure.

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Test what you just learned

A company runs data processing jobs on Compute Engine for 8 hours every night (from 00:00 to 08:00). If the job fails partway through, it can restart from a checkpoint. Which type of VM reduces the cost the most for this use case?

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