In this video I will present the way billing works on Google Cloud platform, how to control spend with quotas, and how to leverage the power of labels. Although IM policies are inherited top to bottom, billing is accumulated from the bottom up, as you can see on the right. Resource consumption is measured in quantities, like rate of use or time, number of items, or feature use. Because the resource belongs to only one project a project accumulates the consumption of all its resources. Each project is associated with one billing account, which means that an organization node contains all billing accounts. Let's explore organizations, projects, and resources, and more. Cloud resources have near unlimited capacity. And since you pay for what you consume, quotas protect you from unintentional expenditure. That's the reason all resources in GCP are subject to project quotas or limits where their purpose is to encourage you to make capacity planning a priority by setting upper limits for resources which can be consumed within the your project. A good example is decreasing a quota on the amount of V CPUs from the default of 24 to 6 for proof of concept or test project, therefore controlling the monthly bill as a result. If your project exceeds the particular quota while using a service the platform will return an error. Given these quotas, you may be wondering how do I spin one of these 96 core VMs? As your use of GCP expands over time, your quotas may increase accordingly. If you expect a notable upcoming increase in usage, you can proactively request quotas adjustments from the quotas page in the GCP console. This page will also display your current quotas. Project quotas prevent runaway consumption in case of an error or a malicious attack. For example, imagine you accidentally created 100 instead of 10 compute engine instances using the G-Cloud command line. Having quotas in place can protect you from this scenario. Quotas also prevent billing spikes or surprises. Quotas are related to billing but you will go through how to set up budgets and alerts later, which will really help you manage billing efficiently. Finally, quotas force sizing consideration and periodic review. For example, do you really need 96 core instance or can you go with a smaller and cheaper alternative? It is also important to mention that quotas are the maximum amount of resources you can create for that specific resource as long as these resources are available. Quotas do not guarantee that the resources will be available at all times. For example, if a region is out of local SSDs, you cannot create local SSDs in that region even if you still had quota for local SSDs.
