The pricing is meant to be extremely competitive against "private cloud"
offerings by other providers in this space. A $40-$100 VPS does not come
with baked-in authentication with Google Apps or a centralized
administration, nor does it come with App Engine's APIs. You can certainly
build a similar stack that works for you, but in the end, you're paying for
a managed solution versus one you manage and build yourself. There's a point
at which self-management doesn't scale anymore, and a decent systems
administrator certainly wouldn't cost $800.

As far as pricing goes, you may not personally think it makes sense for your
needs, but 10 years ago, none of us probably would have guessed that large
enterprises were willing to drop $60+ a month per user for a web based CRM
system.

--
Ikai Lan
Developer Programs Engineer, Google App Engine
Blogger: http://googleappengine.blogspot.com
Reddit: http://www.reddit.com/r/appengine
Twitter: http://twitter.com/app_engine



On Wed, Oct 20, 2010 at 12:34 PM, David Parks <davidpark...@yahoo.com>wrote:

> Oh interesting. Maybe I'm mis-understanding google's intention here. I had
> hoped to use app-engine to host a generic web-facing site. It seems like a
> brilliant platform for that. But perhaps this is not a primary use case
> considered by google? Or maybe that's what they mean by "users outside your
> org would be billed differently", perhaps the whole concept is still in its
> infancy.
>
> But even so, I would be surprised, because a 100 person intranet site
> shouldn’t cost a small company $800 to host (surely a typical $40-$100 VPS
> on any old hosting provider would be more than sufficient).
>
> Oh well, I guess the marketing execs have some work to do. :)
>
>
>
> -----Original Message-----
> From: google-appengine@googlegroups.com
> [mailto:google-appeng...@googlegroups.com] On Behalf Of Geoffrey Spear
> Sent: Thursday, October 21, 2010 1:22 AM
> To: Google App Engine
> Subject: [google-appengine] Re: Google apps engine for Business pricing Q
>
> My understanding that the the App Engine for Business offering you're
> describing is intended for intranet applications, and that the user count
> would be the number of users in your Google Apps domain.
> There's no "free quota" because the applications aren't free in the first
> place. As I understand it there's no quota system at all because the
> business model is different than the "pay for what you use" model in normal
> App Engine. (Although it may be reasonable to think you'd still have the
> limits of the non-billable quotas, maybe at different levels, to prevent,
> say, a 1-person "organization" from running some massive cluster computing
> application in the cloud for super-cheap...)
>
> Applications intended to be used by users outside your organization would
> be
> billed differently.
>
> On Oct 20, 12:33 pm, "David Parks" <davidpark...@yahoo.com> wrote:
> > I'm looking at Google apps engine for Businesses, and in the pricing
> > it
> > says:
> >
> > Each application costs $8 per user, up to a maximum of $1000, per month.
> >
> > Can someone explain to me what a "user" is in this context? I can't
> > find any explanation. Is this just the user that creates the app on
> > appengine.google.com? Meaning $8 allows you to create up to 10 apps +
> > billable usage over the free quota? Or is there no free quota on the
> > business edition?
>
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