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The ultimate guide for GCP cost optimization - part 1 (GKE, GCE and CUD)

Zoltán Guth (CTO)

3 min read

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Zoltán Guth, CTO of Rabbit shares the team’s findings and experiences with our customers on how to identify cost-saving opportunities at the service level.

With 10+ years of experience with Google Cloud and helping dozens of customers to optimize performance and costs in multiple areas of GCP, we recognized that cloud engineers often lack the tools needed for transparency and optimization of cloud systems.

Working with some of the largest cloud users and understanding their needs brought Rabbit to life, which not only offers detailed visibility into cloud usage but also provides automation tools to help teams optimize their cloud resources efficiently.

In the first part of the ultimate guide for GCP cost optimization, we’ll cover Google Kubernetes Engine, Google Compute Engine and Committed Use Discounts.

GKE (Google Kubernetes Engine)

  1. Workload Level:
    1. We often see significant waste due to over-requests on CPU and Memory. For instance, one of our customers saved $70k monthly by optimizing these requests. Automation is crucial here, especially for environments with thousands of workloads.
  2. Node Level
    1. Optimizing node-pool configurations to fit diverse applications is akin to solving a bin-packing problem. This can range from simple adjustments like checking max requests along nodes and changing machine types to more complex strategies like segregating applications into different node-pools based on similar CPU/Memory ratios.
    2. Spot instances can yield substantial savings, particularly for development environments and idempotent background jobs like data processing.
    3. Switching from Intel to AMD (e.g., N2 to N2D) can save at least 13% due to better pricing and 20% better performance based on CoreMark scores. This often results in requiring fewer nodes, leading to even more savings. We’ve seen clients save up to $60k monthly with this strategy.

Compute Engine

  1. Underutilization is a prevalent issue. While GCP’s recommender can help, our recommendations have saved clients 3.4 times more on average, translating to an average $10k saving potential.
  2. Similar to GKE, shifting from Intel to AMD can save 13% on costs and provide 20% better performance.
  3. Automatically turning off and on developer instances can save costs.
  4. Consider using Spot instances for additional savings.

Committed Use Discounts

  1. Review your commitments at least quarterly. If your workload increases, consider additional commitments.
  2. For Compute Engine, consider flexible commitments over resource-based ones for more versatility. A 3-year flexible commitment can provide higher discounts without restrictions on machine types or locations vs a 1-year resource-based commitment.
  3. It is important to mention that you can now have one flexible commitment to cover multiple services GKE Stanard, GKE Autopilot, Cloud Run and Compute Engine lowering the risk of later architecture changes around those services.
  4. Many customers commit to Compute Engine but overlook other services like Memorystore, Dataflow, Cloud Run, and Cloud SQL, leading to unnecessary costs.

Stay tuned for part 2, in which we’ll cover BigQuery and Cloud Storage.


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FAQ

The two biggest levers are CPU and memory request rightsizing — over-requests are extremely common, with one customer saving $70k per month by optimizing them — and machine type switching from Intel to AMD (N2 to N2D), which saves 13% on node costs with 20% better performance and often reduces the total number of nodes needed. Spot instances offer additional savings for development and idempotent batch jobs.

AMD-based machines (N2D, C3D) cost 13% less than their Intel counterparts (N2, C3) while delivering 17–20% better performance based on CoreMark benchmarks. The 13% savings also applies with Committed Use Discounts. Switching node pools from N2 to N2D often reduces the total number of nodes needed, compounding the savings beyond just the direct price difference.

Spot instances are ideal for development environments, batch data processing jobs, and idempotent background workloads where occasional interruption is acceptable. They are not appropriate for production services requiring high availability, stateful workloads that cannot tolerate interruption, or anything where a restart would cause data consistency issues.

Review commitments at least quarterly and add commitments before current ones expire if usage grows. Flexible spend-based commitments are often more versatile: a 3-year flexible commitment provides higher discounts without restricting machine type or location, and one commitment can cover multiple services including GKE, Cloud Run, and Compute Engine. Many customers commit to compute but overlook eligible services like Memorystore, Dataflow, and Cloud SQL.

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