Couldn't agree more. When I chose GAE as my cloud platform I chose it 
because it was the only solution on the market that offered the CPU hours 
billing - you pay only for what you use. THIS was the killer feature that 
made it stand out and what made made me advocate GAE for years on different 
forums.

However, as of today if I started a new project to be hosted in the cloud 
this is not the case: Google is adopting the same virtual machine model than 
Amazon and Azure and the price is much easier to compare as the only 
additional thing you're providing is automatic spinning and killing of 
instances and a java / python environment. I think it's much harder to 
justify the 4x cost difference for an instance with the 1/4th of memory, 
basically bringing it to a 16 times more expensive pricing vs Amazon. 

I'm not sure how this is priced by the market, perhaps running a web app 
with 50K visitors and 1M hits a day with occasional spikes isn't your target 
market - if this was the pricing two years ago when I built my app I would 
surely not have chosen GAE. However I probably don't know your target market 
as well as the GAE team and there probably is a mass who's happy to pay the 
16x price difference more for these extra services.

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