What is the significance of 'Public IP' and 'Private IP' addresses in Google Cloud?

The correct choice highlights the fundamental difference between public and private IP addresses in the context of Google Cloud. Public IP addresses are significant because they allow resources to be accessed over the internet, making them essential for services that need to be reachable by users or systems outside the local network. For example, a virtual machine (VM) with a public IP can serve web traffic directly to end-users.

On the other hand, private IP addresses are crucial for internal communication within a Virtual Private Cloud (VPC) network. They enable resources to communicate securely and efficiently without exposing them to the public internet. This isolation enhances security and reduces the amount of public internet traffic, allowing for safer data transfers and improved performance.

Recognizing the distinction between these two types of IP addresses is vital for effective cloud architecture, as it aids in designing secure and reliable network solutions that meet business needs while optimizing costs and resource management.