Google Compute Engine VM disk is very slow - google-compute-engine

Question

We just switched over to Google Compute Engine and are having major issues with disk speed. It's been about 5% of Linode or worse. It's never exceeded 20M/s for writing and 10M/s for reading. Most of the time it's 15M/s for writing and 5M/s for reading.
We're currently running a n1-highmem-4 (4 vCPU, 26 GB memory) machine. CPU & memory aren't the bottleneck. Just running a script that reads rows from PostgreSQL database, processes them, then writes back to PostgreSQL. It's just for a common job to update database row in batch. Tried running 20 processes to take advantage of multi-core but the overall progress is still slow.
We're thinking disk may be bottleneck because traffic is abnormally low.
Finally we decided to do benchmarking. We found it's not only slow but seems to have a major bug which is reproducible:
create & connect to instance
run the benchmark at least three times:
dd if=/dev/zero bs=1024 count=5000000 of=~/5Gb.file
We found it becomes extremely slow and aren't able to finish the benchmarking at all.

Answer 1

Persistent Disk performance is proportional to the size of the disk itself and the VM that it is attached to. The larger the disk (or the VM), the higher the performance, so in essence, the price you are paying for the disk or the VM pays not only for the disk/CPU/RAM but also for the IOPS and throughput.
Quoting the Persistent Disk documentation:
Persistent disk performance depends on the size of the volume and the
type of disk you select. Larger volumes can achieve higher I/O levels
than smaller volumes. There are no separate I/O charges as the cost of
the I/O capability is included in the price of the persistent disk.
Persistent disk performance can be described as follows:
IOPS performance limits grow linearly with the size of the persistent disk volume.
Throughput limits also grow linearly, up to the maximum bandwidth for the virtual machine that the persistent disk is attached to.
Larger virtual machines have higher bandwidth limits than smaller virtual machines.
There's also a more detailed pricing chart on the page which shows what you get per GB of space that you buy (data below is current as of August 2014):
Standard disks SSD persistent disks
Price (USD/GB per month) $0.04 $0.025
Maximum Sustained IOPS
Read IOPS/GB 0.3 30
Write IOPS/GB 1.5 30
Read IOPS/volume per VM 3,000 10,000
Write IOPS/volume per VM 15,000 15,000
Maximum Sustained Throughput
Read throughput/GB (MB/s) 0.12 0.48
Write throughput/GB (MB/s) 0.09 0.48
Read throughput/volume per VM (MB/s) 180 240
Write throughput/volume per VM (MB/s) 120 240
and a concrete example on the page of what a particular size of a disk will give you:
As an example of how you can use the performance chart to determine
the disk volume you want, consider that a 500GB standard persistent
disk will give you:
(0.3 × 500) = 150 small random reads
(1.5 × 500) = 750 small random writes
(0.12 × 500) = 60 MB/s of large sequential reads
(0.09 × 500) = 45 MB/s of large sequential writes