Google were innovating new product with the money they didn't spend on hardware. And, AFAIK, the didn't so much reduce existing cost as reduced the future cost

Google were innovating new product with the money they didn't spend on hardware. And, AFAIK, the didn't so much reduce existing cost as reduced the future cost of new investment i.e. increased bang for buck. That's not the same as doing removing every other light bulb in the building (which is what Lucent did at Bell-Labs!)