Cloud Digital Leader How Google Cloud Resources Are Managed Practice Question

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

• ✓

  Apply CUDs at the project or folder level.

  Why this is correct

  Applying committed use discounts (CUDs) at the project or folder level allows you to aggregate usage across multiple projects under one commitment. This ensures that all eligible Compute Engine resources in those scopes receive the discounted rate, preventing situations where separate per-project commitments underutilize purchased capacity. It also simplifies management by enabling centralized procurement and automatic application to matching resource types, thereby reducing overall compute costs.

• ✓

  Purchase committed use discounts (CUDs).

  Why this is correct

  Purchasing committed use discounts (CUDs) involves entering into a contractual agreement to pay for a baseline level of vCPUs, memory, GPUs, or other resources for 1 or 3 years. In exchange, Google Cloud applies a significant discount (up to 70% for most resources) to that committed usage. This option is ideal for predictable, steady-state workloads, as it locks in lower prices but requires a fixed financial commitment, making it unsuitable for highly variable or experimental workloads.

• ✓

  Use sustained use discounts (SUDs).

  Why this is correct

  Sustained use discounts (SUDs) are automatically applied to Compute Engine instances that run for more than 25% of a billing month, providing incremental discounts of up to 30% for instances running the entire month. No upfront commitment or purchase is required; the discount is calculated per instance and per project based on actual usage. This is best for workloads that have consistent usage but don't qualify for CUDs, though the discount is generally lower than what CUDs offer.

• ✗

  Use preemptible VMs for all workloads.

  Why it's wrong here

  Using preemptible VMs for all workloads is incorrect because preemptible VMs are designed for short-lived, batch, and fault-tolerant workloads. They can be terminated by Compute Engine at any time, with a maximum lifetime of 24 hours, and offer no availability guarantees. Most production systems, especially stateful or latency-sensitive applications, require persistent VMs; relying on preemptible instances for everything would cause widespread service disruption and data loss.

• ✗

  Set up billing export to BigQuery.

  Why it's wrong here

  Setting up billing export to BigQuery is a cost-management practice that exports detailed billing records to BigQuery for analysis and reporting. It does not directly reduce costs; rather, it provides visibility into spending patterns, which can help you identify waste and inform cost optimization decisions. However, the export feature itself has no discounting effect, so it is not a cost-reduction mechanism in its own right.

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