My $0.02 cents (old model, $0.08 new Google estimate, $1.00 other user
estimates).

Having done a lot of work in finance for a large tech company, my main
disappointment with the new pricing is the me-too approach from
Google. Great engineering, but very lax with respect to innovation for
the whole product. In this case pricing.

GAE had promised more of an activity-based model. Great I thought, an
application of Activity Based Costing to a business. ABC is truly a
gift for businesses WTR good decision making. However, the discipline
needed to apply it often goes lacking. The main area where the lack of
discipline applies is upper management decision making. ABC is a
disciplined approach to running your business. It lays bare good
operations, and forces poor management decisions into the open --
which is why upper managers hate it. Anyway, enough theory.

Here's the example the applies to GAE. The $0.01 charge per 10,000
files. For nearly the entire time I've been in this forum, I've heard
Ikai and others describe the efficiency and sophistication of GAE
content delivery network. "Use static files because of our great
efficiency" or something like that. Unless I'm mistaken, there is
nothing that would suggest using ABC that the number of files drives
costs at $0.01 per 10K.

Another take on this is a question someone asked long ago in the
forums about why static files bandwidth charges under High Replication
got the higher bandwidth charge when the system used to deliver the
bandwidth is THE SAME system used for Master/Slave. Never answered of
course.

The penny per 10K files is simply Google lazily looking at AWS and
saying, "Hey, this is how we can really juice the profit, and compare
well with AWS." The problem with these types of decisions that the
pricing system becomes arbitrary, and guided ultimately by board-room
decisions rather than operating discipline.

I'm happy that GAE is upping its pricing as it is a clear indication
that this may become a viable P/L driven business. However, seeing
this type of mee-too-ism in the pricing area rather than something
such as the original promise from GAE strongly suggests that Google
sees little value in hiring great accountants in addition to great
engineers is disappointing. I say that having been part of Hewlett
Packard during its great years in InkJet printers where things like
ABC delivered incredible value for consumers, and then seeing that
morph into a company that stopped being disciplined, and started to
think solely about how to juice its quarterly profits. Google is
simply coming out the gates appearing like the sad shell of a company
I left. Larry suggests he's not a quarterly-profit focused guy, but
this pricing tells me that he doesn't understand how things like
taking the simple route on pricing decisions because you don't think
great decision-based accounting systems are important MAKES YOUR
ORGANIZATION LAX.

</rant mode>

Still happy, and somewhat trustful of GAE. Sorry to see that the
pricing decisions look mostly like "...this compares well to AWS." Oh
well.

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