1 The resource hierarchy at scale
Google Cloud organises every resource into a strict hierarchy: the Organization node sits at the top, then Folders, then Projects, then the resources (VMs, buckets, datasets) themselves.
The hierarchy is not just cosmetic — it is the backbone of policy. IAM policies and Organization Policy constraints set on a parent node are inherited by every descendant. A policy granted at the Organization level applies to all folders and projects beneath it.
- The Organization is created automatically when you link a Cloud Identity or Google Workspace account; it is the root of trust.
- Folders model departments, teams, or environments and can nest several levels deep.
- Projects are the fundamental unit of billing, quota, and API enablement — every resource lives in exactly one project.
A common pattern is folders for environment (prod, non-prod, shared) or for business unit, with projects grouped beneath. Designing this tree early is critical because IAM inheritance is additive and hard to unwind later.
# Inspect the hierarchy
gcloud organizations list
gcloud resource-manager folders list --organization=123456789012
gcloud projects list --filter='parent.id=2222222222'
# Create a folder and a project beneath it
gcloud resource-manager folders create \
--display-name='prod' --organization=123456789012
gcloud projects create my-app-prod --folder=3333333333