Shining a light on your costs: New billing features from Google Cloud

One of our primary goals at Google Cloud Platform (GCP) is to help you focus on building value for your business while we take care of the infrastructure. But as you focus on those value-adding activities, it’s still important to understand the costs of what you’re building so you can optimize them. One of the biggest steps you can take is to shine a light on those costs through good cost hygiene and awareness. Over the last few months, we’ve added a number of features to help you adopt cost management best practices.

You can see some of the new features we’ve added to Billing reports in this video:

See how you can gain visibility into your current cost trends and forecasted costs with Billing reports.

You can also get a more comprehensive look into what we’ve released below along with recommendations for how to apply good cost hygiene and awareness within your organization.

Create cost accountability through visibility

The biggest step you can take is to simply make your costs visible. We offer several features in GCP that make this easy to do: our new Billing account overview page, which gives you an at-a-glance summary of your charges to date, estimated end-of-month charges, and any credit balances; Billing reports, which are dynamic, built-in cost reports available in the Google Cloud console; and Billing export, which exports detailed cost data to a BigQuery dataset of your choice for further analysis. You can set permissions on both Billing reports and export to make sure people in your organization have access to the right cost views, and you can use exported data to run custom queries and dashboards (such as via Data Studio) to dive deeper into your cloud usage and costs.

These tools do more than create a culture of cost ownership. In the cloud, where performance bugs can often manifest as cost anomalies, improving cost visibility and accountability can go a long way to improving general operations. Customers tell us that using these tools helps them make better technology decisions and improves their cost efficiency:

“Giving developers access to view the costs for their GCP projects helps them be more aligned with the business and its objectives,” says Dale Birtch, site reliability engineer at Vendasta. “Not only do we get better engineering practices, we get a more stable environment long-term, and it costs us less to run.”

Organize costs the way you manage work

The next big step is to organize costs the way you manage work. There are three main ways to organize your GCP costs: by product hierarchy, by project hierarchy, and by label. The default way to organize costs is by product hierarchy. Anytime you use a GCP resource, whether it is a Compute Engine VM or a Cloud Pub/Sub message, its costs are reported by stock-keeping unit (SKU). We organize these SKUs under GCP products, helping you get a higher-level view of your usage. For example, N1 standard instance SKUs roll up to the Compute Engine product. As part of GCE’s resource-based pricing launch, we added more metadata to your Billing export BigQuery datasets, so you can see the usage location (if applicable) and, for Compute Engine VMs, the machine specification, core and memory footprint of your instances via system labels. We have also added usage location to Billing reports. This helps you quickly see which geography, region or multi-region is driving your costs.

The next way to organize costs is by the project hierarchy. Almost every resource is contained by a project, meaning that most resource access and costs can be managed by project. Organizations and folders give structure to your GCP environments and help you organize your projects and standardize permissions and policies across groups of projects. For example, a folder might represent the “production” environment with strict access requirements set at the folder level. You can also now see a project’s folder path in Billing export to BigQuery to make it easy to query and create custom dashboards for folder costs.

The final way to organize costs is by label. In particular, resource labels can be applied to resources to help you distinguish between usage within or across projects. For example, if a project contains all of the resources for an application, one set of labels could represent resources for components of that application (i.e., front end, back end), and another set of labels could represent common costs across applications (i.e., security, testing, development). With these new features, labels are available in Billing export to BigQuery, and we plan to add the ability to filter and group costs by labels in Billing reports soon.

If you are a Google Kubernetes Engine (GKE) user, we also recently launched GKE usage metering. GKE usage metering exports usage breakdowns by Kubernetes namespace and Kubernetes labels to BigQuery in a way that can be joined with Billing export data to estimate cost breakdowns for teams and workloads that are sharing a cluster.

Understand your net costs

Another big step you can take toward cost visibility is to understand your fully loaded or net costs. We’ve made two improvements to make your net costs easier to understand.

First, Billing reports now let you see costs by invoice month, including taxes and other invoice-level charges. We also added the ability to filter usage-based credits by type so that you can understand what your costs would be without free trial, promotional, or other usage-based credits, such as sustained use discounts and committed use discounts

Second, we’ve added a new cost breakdown report that lets you see how we arrive at your final invoice amount from your original usage costs. For example, if you use Compute Engine, the cost breakdown chart will show you how much your VM costs would have been before any committed use discounts, sustained use discounts, promotional credits and/or free trial credits, and visualize the net effect of those discounts. This gives you a simple at-a-glance overview of your GCP costs and savings, as shown here:

gcp cost breakdown.png

Plans might change, but planning is essential

Finally, an important part of cost management is to understand what your costs should be (your plan) and when costs have deviated from your plan. Last year, we added a cost forecast feature to Billing reports to show you a smart forecast based on your cost history and selected filters. We’ve improved our forecasting algorithm so that it captures monthly cyclicality. Now, instead of a simple linear projection, you can see a forecast that matches how cycles within a month affect your costs, like this:

gcp smart forecast.png

In addition, with the higher accuracy forecast, we have also launched the ability to set alerts based on forecasted cost. So rather than relying simply on alerts when you exceed a budget threshold (e.g., $1,000 per month for a specific project), you can now also set an alert—via email or Cloud Pub/Sub—so that you’re notified when you are forecasted to exceed that budget for the month.

Turn on the electric light

Cloud customers often tell us that they feel left in the dark about the cost of what their developers are building. Developer velocity has never been faster, but administrators and managers are simultaneously struggling to govern their costs. A quote by Justice Louis Brandeis comes to mind: “Sunlight is said to be the best of disinfectants; electric light the most efficient policeman.” Every corner of your cloud should be well-lit so you can easily understand your cloud costs. We’re committed to delivering cost management tools that help you illuminate your business and grow confidently in the cloud.

To learn more about what’s next for Google Cloud cost management, check out the following:

Contact us anytime with your feedback or questions.

Committed use discounts at a glance: New report shows your Compute Engine usage and commitments

Cloud adoption is fueled by the promise of increased flexibility, lower costs, and simplified pricing. At Google Cloud, we deliver on this promise with innovations like committed use discounts, which offer deep discounts of up to 57% off on-demand prices on VM usage in exchange for a one- or three-year commitment. Today, to help you analyze your Compute Engine resource footprint alongside your commitments, we are pleased to announce the Committed Use Discount Analysis report in beta. With this report, you can visualizeyour commitments from directly within theCloud Console to answer questions such as:  

  • How much are my committed use discounts saving me on my bill?
  • Am I fully utilizing my existing commitments?
  • How much of my eligible usage is covered by commitments?
  • Is there an opportunity to save more by increasing my commitments?
See how you can visualize and better understand the effectiveness of the commitments that you've purchased with Google Cloud cost management tools.

Over the last two years, we’ve seen rapid adoption of committed use discounts, and recently expanded support to include local SSDs, GPUs, and Cloud TPU Pods based on customer feedback. Now, with the Committed Use Discount Analysis report, you get even greater transparency into your usage and cost savings so that you can maximize your discounts and minimize the time spent managing your commitments.

Early adopters of the Committed Use Discount Analysis report are already seeing the benefits:

“With this tool, we better understand our historical usage of eligible compute resources and how that compares to our commitment levels. Our commitment utilization and coverage is automatically calculated, enabling us to know when to purchase more commitments so that we can maximize our discounts. This gives us a higher level of confidence in purchasing commitments, allowing our teams to invest more in the innovations that drive Etsy’s vision.” – Dany Daya, Senior Program Manager, Etsy

Google Cloud is dedicated to providing you with cost management tools that make it easier to manage and optimize your Google Cloud Platform (GCP) costs. With this new feature and Cloud Billing reports, you can gain greater visibility into your costs and the impact of your discounts at a glance. You can start using the new Committed Use Discount Analysis report in the Cloud Console today.

Next steps

To learn more about committed use discounts and Google Cloud cost management tools, check out the following: