Deepak: there are multiple ways to achieve what you're describing on the 
Google Cloud.

If you need for the instances to serve web traffic, you can create a 
"custom runtime" for the Google AppEngine Flexible environment: 
https://cloud.google.com/appengine/docs/flexible/custom-runtimes/

However, this is mainly aimed at web traffic (ie. request-response which 
finishes in a short amount of time). Since you're looking for something 
long running (as in a video stream), you probably be better served by an 
auto-scaling managed instance group 
(https://cloud.google.com/compute/docs/instance-groups/) which has a load 
balancer in front 
(https://cloud.google.com/compute/docs/instance-groups/#instance_groups_and_load_balancing).

Setting this up is as simple as

1) creating one machine
2) setting it up as desired (SSHing into it, setting up packages, etc)
3) creating an instance template from this one machine: 
https://cloud.google.com/compute/docs/instance-templates/

As you identified, instance groups can have automated scaling or manual 
scaling and are better suited for long running tasks like video 
conferencing.

All the best,
Attila

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