GCP Cost Optimization
Cloud Cost Optimization isn't just about cutting costs—it's about smart savings! By proactively managing your usage, expenses, and commitments, you can uncover opportunities to trim costs without sacrificing quality. Dive in to keep your services top-notch while keeping your wallet happy!
No credit card required
4.8 stars rating
.gif)
Why Does GCP Cost Optimization Matter?
Google Cloud Platform is packed with services and setups to fit your unique needs, but all that flexibility makes its pricing a bit tricky. Your costs can shift based on usage, duration, and advanced features like enhanced security. But do not stress–let’s simplify it together!
We’ll guide you through understanding GCP pricing, choosing the right payment plan, and using the best tools to keep your costs in check.
How Can You Reduce Your GCP Costs?
Let’s take a closer look at how GCP cost optimization can make a difference. Here we delve into an actual case study of a thriving company that heavily relied on cloud resources for data processing, content delivery, and various other operations. By implementing GCP cost optimization strategies, they were able to cut expenses and maintain their growth. Want to see how GCP cost optimization could benefit your business too? Let’s explore.
The Cloud Cost Problem
This company started with a cloud budget of $250,000 a month, which worked perfectly at first. However, as their business grew and customer needs increased, their Google Cloud Platform usage expanded. In just six months, their monthly costs doubled to $500,000.
What is the Cloud Cost Analysis?
Realizing their cloud costs were spiraling out of control, they turned to Economize for help. Our deep dive into their Google Cloud Platform usage revealed some startling insights.
- A staggering 35% of their monthly spending was due to cloud waste. Many resources were either unused or underutilized. But their in-house tools couldn’t provide the visibility they needed to detect and manage these costs.
- We also found a troubling lack of accountability in their expenditure. The engineering teams were spinning up resources without proper oversight, leaving them active and driving up costs unnecessarily.
Economize helped them get a handle on their GCP spending by pinpointing these issues and offering target solutions.
The Cloud Cost Optimization Strategy
Economize crafted a detailed FinOps roadmap for them, starting with a clear view of their entire cloud spending. By analyzing their billing data, we set benchmarks and compared them against current usage and costs, uncovering areas where improvements were needed.
- After meticulously following the prescribed best practices and strategic steps, a remarkable transformation was observed. Within four months, the company was able to pare down its monthly costs to $350,000, resulting in impressive savings of $150,000 each month. These savings could then be channeled into other essential objectives, bolstering the company's financial health.
This case study underscores the critical importance of GCP cost optimization. It facilitates substantial cost savings and enables a financially sustainable and efficient cloud environment.
How Much Does GCP Cost?
To get a handle on your GCP costs, it's crucial to grasp how Google Cloud pricing works. GCP’s consumption-based pricing sounds straightforward—pay for what you use. But in reality, managing those costs can feel like juggling too many things at once. Economize helps you stay ahead of the game, by giving you the tools to optimize your usage and maximize your budget, all while keeping things simple and clear.
Storage Costs:
You're charged based on how much data you store across GCP services. Want more details on storage classes?
Network Costs:
Costs add up depending on the amount of data you transfer in and out of GCP. Keeping track of this is key.
Data Costs:
Services like Compute Engine, Cloud SQL, and BigQuery each have their own pricing based on the data they handle.
How to Calculate your GCP Costs?
Our GCP Pricing Calculator is here to make things easy for you. Just plug in your instance type, region, and usage duration, and you’ll get a clear picture of what your costs will be. It’s the perfect tool for keeping your GCP spending in check.
Google Cloud Pricing Models
GCP offers three key pricing models to accommodate varying user requirements: Free Tier, On-Demand, and Long-Term.
GCP Free Tier: Usage and Limits
The GCP Free Tier is a great way to start exploring Google Cloud services without spending a dime. It gives you limited monthly usage on key services like Compute Engine and Cloud Storage. Want to know the specifics? Let’s take a look at some of the free tier limits.
- Compute Engine: 1 non-preemptible e2-micro VM instance per month
- Cloud Storage: 5 GB months of regional storage per month
- Google Kubernetes Engine: No management fee for one Autopilot or Zonal cluster per billing account
- Firestore: 1 GB storage per project
- Cloud Logging: Free monthly logging allotment
- BigQuery: 1 TB of querying and 10 GB of storage per month
- App Engine: 28 hours per day of "F" instances
Remember, if you go beyond the Free Tier limits, charges will apply based on GCP’s regular pricing.
On-Demand Pricing
This flexible model lets users pay for resources as and when they use them. Users can scale up or down depending on their needs and only pay for the services consumed. This option is ideal for organizations with unpredictable workloads or who need to quickly adapt their resources.
For the General-Purpose Machine Types (C3):
- Predefined Memory: $3.32515 / GB month
- Spot Pricing for vCPUs: $2.25278 / vCPU month
- Spot Pricing for Memory: $0.30149 / GB month
- Predefined vCPUs: $24.80686 / vCPU month
For the C3 Standard Machine Types:
- c3-standard-4: $0.208808 per hour
- c3-standard-8: $0.417616 per hour
- c3-standard-22: $1.148444 per hour
- c3-standard-44: $2.296888 per hour
Long-Term Pricing
If your resource usage is predictable, Long-Term Pricing options like Committed Use (CUD) and Sustained Use Discounts (SUD) are ideal. You commit to using specific resources for one or three years and, in return, enjoy reduced pricing.
Committed Use Discounts (CUDs)
Committed Use Discounts (CUDs) allow you to commit to a set amount of resources for a specific period of time, in return for a discounted rate.
For example, if you need to run a virtual machine for a year, you can commit to a certain number of CPU and memory resources, and receive a discount for doing so. Discounts range from 20% to 77% for 1 and 3-year commitments respectively.
License pricing with CUDs:
- SLES: 1-2 vCPUs at 77% (1-year) and 79% (3-year) CUD
- SLES for SAP: Any number of vCPUs at 59% (1-year) and 63% (3-year) CUD
- RHEL and RHEL for SAP: Any number of vCPUs at 20% (1-year) and 24% (3-year) CUD
Sustained Use Discounts (SUD)
Sustained Use Discounts (SUD) on the other hand, are automatically applied when you use a virtual machine for a certain amount of time each day, over a 30-day period.
The longer you use the machine, the more you save, with discounts ranging from 10% to 90%. This pricing model is ideal for businesses that have predictable resource requirements and need to run virtual machines for extended periods of time.
- n1-standard-1 VM: 0%–25% of the month at $0.0475/hour, 25%–50% at $0.0380/hour, 50%–75% at $0.0285/hour, and 75%–100% at $0.0190/hour
- c2-standard-4 VM: 0%–25% of the month at $0.2088/hour, 25%–50% at $0.1811/hour, 50%–75% at $0.1530/hour, and 75%–100% at $0.1252/hour
Understanding these pricing components and models allows businesses to spot areas of potential overspending and optimize their GCP usage.
How do I calculate GCP costs?
Plan smart and stay ahead of your GCP costs with our handpicked tools and resources which can help you budget your cloud costs effortlessly.
Pricing Catalog:
Compare and explore GCP services to find the best fit for your needs, complete with transparent pricing.
GCP Calculator:
Get quick cost estimates by inputting your usage details into our user-friendly GCP Pricing Calculator.
Regions and Zones Map:
Discover the best regions and zones for your workload using our detailed coverage map.
SKU Inventory:
Services like Compute Engine, Cloud SQL, and BigQuery each have their own pricing based on the data they handle.
Start by identifying the best regions, exploring pricing, and then forecasting your costs using our calculator—easy planning for smart cloud spending.
3 Ways to Optimize Your GCP Costs
When it comes to Google Cloud Platform (GCP), there are a myriad of tools and best practices designed to help users optimize their cloud expenditures. By putting these recommended practices into action, you can considerably cut down your cloud expenses, thereby making your resource allocation more efficient.
Bear in mind that achieving cost optimization on the cloud isn't a one-off task but an ongoing journey that demands regular monitoring and tweaking.
1. GCP Spot Virtual Machines (VMs)
Google Cloud Platform Spot VMs are a cost-effective option for running workloads that can tolerate interruptions. hile they’re cheaper than regular on-demand VMs, they can be pulled back with only a 30-second heads-up when GCP needs to prioritize other users. If your workloads are flexible, this is an easy win for your budget.
Some examples of workloads that can benefit from using GCP Spot VMs include:
- Batch jobs: These are typically non-interactive workloads that can be stopped and resumed without any negative impact. Examples include data processing, analytics, and rendering.
- Stateless workloads: These are workloads that do not maintain any persistent state, and can easily be replaced by another instance if needed. Examples include web servers and load balancers.
- Fault-tolerant workloads: These are workloads that can continue to function even if one or more instances are terminated. Examples include distributed systems and applications that use auto-scaling.
2. GCP Active Assist - Optimizing Resources
GCP Active Assist provides real-time guidance and suggestions to help users troubleshoot and optimize their GCP resources. It can help users identify and resolve issues related to performance, cost, security, reliability, manageability, and sustainability, GCP calls it “Recommenders”.
It also provides automated remediation actions to help users quickly resolve problems and improve the overall health of their GCP resources through Recommendations Hub. These Recommendations can also be consumed via Recommender API or exported to BigQuery on a scheduled manner.
VM Machine Type Recommender
- It takes into account data such as CPU and memory usage, as well as how many vCPUs and how much memory is allocated to the VMs. It also considers the cost of the different machine types so you can get the most cost-effective option.
- The recommender can also detect VMs that are underutilized or idle and suggest shutting them down or resizing them to save money. It can also detect VMs that are overutilized and suggest upgrading them to improve performance.
- It relies on machine learning algorithms to make its recommendations. They are updated in real-time as new usage data becomes available, which lets the recommender adapt to changing usage patterns and make more accurate recommendations.
3. Cloud Asset Inventory
Cloud Asset Inventory helps in optimizing resource allocation. It can provide detailed information about the resources in use, such as the resource type, location, and size.
This information can be used to optimize resource allocation by identifying resources that are over or under-allocated and adjusting them accordingly.
While Cloud Asset Inventory can be a powerful tool for tracking resource changes, there are some limitations to be aware of:
- Limited historical data: Cloud Asset Inventory may not retain historical data for an extended period of time, which can make it difficult to track long-term resource changes or trends.
- Limited visibility into certain resources: Some resources, such as cloud services or applications, may not be fully visible to Cloud Asset Inventory, which can make it difficult to track changes to those resources.
- Limited integration: Cloud Asset Inventory may not be able to integrate with other tools or systems, which can limit the ability to track resource changes in a centralized way.
Take Charge of Your Cloud Cost with GCP Cost Optimization Tools
Managing cloud pricing can be complex and time-consuming, especially when you’re new to the environment. But why let potential savings go to waste? With GCP Cost Optimization Tools, you can simplify the process, gain better visibility into your spending, and start saving sooner, all without the typical time and labor investment.
Using GCP Cost Optimization Tools
Cloud cost optimization tools are engineered by FinOps experts to process your billing and usage data, presenting it through comprehensible visualizations and intuitive dashboards. These tools offer an array of benefits:
Visibility and Insight
The tools provide granular insights into your cloud expenditure patterns, enabling better understanding and control over your spending.
Benchmarks and Best Practices
By analyzing your data, these tools help establish meaningful benchmarks, fostering cost-effective and goal-oriented decisions.
Automation
These tools automate routine tasks, freeing your teams to focus on strategic objectives and build sustainable financial models.
Cost Control
They combat the primary cost drivers in GCP expenditure - idle resources, misconfigurations, hidden costs, and missed opportunities.
Taking the complexity out of cloud management, GCP Cost Optimization Tools offer organizations a streamlined and effective way to manage their cloud finances.
Instead of investing time and resources into developing an in-house cloud management team, these tools present an economical and efficient alternative.
Types of Cost Optimization Tools
Different organizations have varying requirements when it comes to cloud cost management, depending on their size, the complexity of their cloud environments, and the level of granularity and control desired. Recognizing this, a variety of tools have been developed to address diverse needs.
Native GCP Cost Optimization Tools
Google Cloud Platform itself offers several tools that can help with cost management. These tools are integrated into the GCP console and provide insights specific to GCP services. Here are some noteworthy ones:
- Google Cloud Billing Reports: This feature provides comprehensive charts and tables that summarize your GCP usage costs.
- Google Cloud Pricing Calculator: This tool helps you to estimate the cost of your intended GCP usage.
- Google Cloud Cost Table: It shows a comprehensive list of all GCP products along with their respective pricing.
Leading Third-Party Tools
Third-party tools have emerged in the competitive market to offer multi-cloud and hybrid-cloud cost management solutions with user-friendly interfaces.
- These tools not only provide cost optimization solutions for GCP but also extend their services across other cloud platforms, including AWS and Azure.
- A curated list of leading third-party tools can be found here.
These tools generally provide a more comprehensive set of features than the native GCP tools, including more advanced analytics, budgeting, and forecasting capabilities.
Free Open Source Tools
Open-source tools provide a level of transparency and customizability that's unmatched by other types of tools. A list of industry-leading open-source tools can be found here.
- They can be a cost-effective solution for organizations with the skills and resources to utilize them effectively.
- However, they may come with their own set of challenges, including a steeper learning curve, limited formal support, and potential integration issues.
By understanding your specific requirements and conducting thorough research, you can find the right tool that fits your organization's cloud management needs.
How to Choose the Right Cost Management Tool?
When it comes to selecting a cloud management platform (CMP), it's crucial to align your choice with the unique needs and strategic direction of your organization's cloud journey. Here are some key factors to consider:
Cost Tracking & Allocation
The CMP should provide robust cost-tracking capabilities to properly attribute cloud expenses to the appropriate business units or departments. This granular cost insight facilitates efficient cost management and informs optimization strategies.
Integration Capabilities
Your tool should seamlessly integrate with your current project management and IT tools, delivering real-time alerts, swift deployment capabilities, and increased cloud environment visibility. Ensure that the chosen tool caters specifically to your cloud platform.
Automated Alerts
The CMP should be capable of setting up automated alerts for rapid cost spikes, untagged infrastructure, permission failures, or exceeded budget limits. These alerts act as an early warning system to help mitigate unexpected cost overruns.
Intelligent Recommendations
A top-tier CMP should provide tailored recommendations based on your unique cloud usage patterns. Suggestions regarding underutilized instances, storage inefficiencies, or compute optimizations can lead to significant cost savings over time.
By evaluating these critical factors, you can make an informed decision that will shape the effectiveness of your cloud cost management strategy.
How can Economize Help to Optimize your GCP Costs?
Economize stands out in the cloud cost management space by offering a dynamic and effective solution for organizations struggling with high cloud costs across AWS, GCP, and Azure environments. Here are a few ways it can help cut down your costs:
Ridiculously Beautiful Cost Reports
Gain a holistic view of your cloud costs by bringing together all spend data from different cloud environments into one place, making it easier to track and manage your costs. With our aggregated view, you can get a complete picture of your cloud financial health and make informed decisions. Always stay on top of your cloud costs and pilot it like a pro.
Slice and dice your complex cost data
Flexibility for you to focus on the area that matters the most to you — whether that be at the organization, project, billing account, or even tag level. Export the reports and share them with your team and stakeholders. Obtain a bird’s-eye view of your entire organization’s costs and drill down to an organization, or a project, a billing account, or as granular as a tag. Promote transparency and accountability and align everyone on a shared FinOps goal.
Cloud Visibility. Financial Stability.
Empower your developers with cloud cost visibility allows them to understand the financial impact of their decisions and take ownership of their costs. Foster a culture of cost awareness and accountability to achieve long-term financial stability. Analyze cost patterns and consumption trends and predict future costs to perform budgeting and financial planning.
