This took me two whole days to figure out, adding Drupal 7 on Google Cloud Compute is as easy as clicking on "Click to Deploy" and selecting Drupal 7 as a new instance.
Adding Drupal 8 on the other hand was a whole new challenged in itself as I had to deal with SSH (myself and SSH have never been good friends).
LAMP, Drush 7 (installed via "composer"), Drupal 8 (Setting up DB, settings .php and files permissions).
So here is the walk-through/ tutorial that I created.
