I've got a VM instance with Windows Server 2012 Datacenter and i want to use it as a web server to host a web app, so far i've installed ISS, DNS Server, but i don't know how to configure DNS Server.

GCE VM instance has an external ip, is that the static ip i need for routing web traffic to the web server?

What are the steps to make set up the DNS Server with ISS and GoDaddy using Google Compute Engine?

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From what I understand, you have your domain registered with GoDaddy and you have a Google compute engine instance running your website. On the GCE side, you do not need to do anything, just make sure your webserver is running and serving pages on the external IP.

On the GoDaddy side, all you need is to create an A record pointing to the GCE machine external IP. Please see this for steps.

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