Hi,

I'll see you on Thursday!

On first glance, the new pricing definitely makes AppEngine significantly 
less competitive - and it's quite a disappointing jump from the prior 
pricing. For one app we run, the charges will go up from the current 
$0.30/day to $11/day - and that's with the 50% discount, so it'll actually 
be around $20/day. That's almost two orders of magnitude more expensive than 
previously!

Being priced by actual CPU usage (rather than instance hours which include 
idle time) was a great advantage of AppEngine. The policy for idle time is 
largely controlled by GAE (as, in my opinion, it should be), however this 
mechanism is not efficient right now. For ~300 instance hours, we have 
clocked only 6.5 hours of actual CPU usage. If this ratio would go from 2% 
to closer to 50%, I'd be happy with the new pricing. I think the current 
scaling mechanism is broken - we see instances with the same uptime (eg. 4 
hours), but an order of magnitude different numbers of requests served (120 
vs 1200). The fact that the scaling mechanism is not efficient was 
previously not a concern for us (it was a concern for Google).

Now the pricing model is directly comparable to AWS, and it's not even 
favorable anymore. The more flexible architecture of AWS provides more 
choices for achieving high efficiency with less instances - we have full 
control over usage and scaling. We have migrated some apps from GAE to AWS 
previously due to Datastore write latencies, and with the new pricing 
there's one less "pro" for GAE.

Regards,
  Viktor

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