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GCP Cost Management

Published: February 10, 2025 | 10 min read

Overview

Effective cost management in Google Cloud Platform requires understanding its unique billing structure and tools. This guide covers GCP's cost optimization features and best practices.

Key GCP Cost Management Tools

1. Cloud Billing Reports

  • Purpose: Detailed analysis of GCP spending
  • Key Features:
  • Cost breakdown by project, service, and SKU
  • Custom reports and dashboards
  • Budget alerts and notifications

2. Recommender

  • Purpose: AI-powered optimization recommendations
  • Key Features:
  • VM right-sizing suggestions
  • Idle resource identification
  • Commitment purchase recommendations

3. Cloud Billing Budgets

  • Purpose: Set custom budget thresholds
  • Key Features:
  • Multiple budget types (cost, usage, forecast)
  • Email and Pub/Sub notifications
  • Budget filtering by project, service, or label

Cost Optimization Strategies

Compute Engine Optimization

  • Use preemptible VMs for fault-tolerant workloads
  • Implement custom machine types
  • Leverage sustained use discounts

Storage Best Practices

  • Use appropriate storage classes
  • Implement lifecycle policies
  • Enable Object Versioning only when necessary

Commitment-Based Discounts

  • Committed Use Discounts (CUDs)
  • Sustained Use Discounts (SUD)
  • Resource-based vs. spend-based commitments

Implementation Roadmap

  1. Initial Assessment
  2. Enable billing export to BigQuery
  3. Set up budget alerts

  4. Identify quick wins

  5. Optimization Phase

  6. Implement commitment plans
  7. Right-size resources

  8. Schedule non-production environments

  9. Ongoing Management

  10. Monthly cost reviews
  11. Automated optimization
  12. Team training and awareness

Next Steps