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Configuring a lifecycle policy in Cloud Storage primarily serves to automatically manage objects in a bucket based on defined rules. These policies allow for the automation of actions such as moving data to cheaper storage classes or deleting data when it is no longer needed, which can help optimize costs and manage data retention effectively. For instance, an organization might implement a lifecycle rule to transition images to a less expensive storage class after a certain period, or to delete temporary files automatically after they expire. This automated process helps maintain efficient data management and ensures compliance with organizational data governance policies without requiring manual intervention.