I previously worked on a similar (non-Google) product that was similar -- it was an "On-Premise Cloud" [0], where the cloud provider managed and owned all the hardware and software, and the customer created workloads on it, and the physical hardware was scaled up/down based on demand.

The product worked well, but I think there was an uphill battle in explaining the mechanics of the arrangement to customers.

[0] https://knightpoint.com/what-we-do/offerings/on-premises/inf...