The Compute Engine price is not low. Amazon charges the same price (more or 
less) for EC2. Some other providers charge even better prices.

ProfitBricks allows u scale up live, and sells by the RAM and Cores you 
need. 
OVH sells a dedicated box with included guaranteed 100Mbps up to 10 TB 
bandwidth per month, 16GB RAM, dual-core 3.4GHz intel core i3 sandy bridge 
processor, 2X1TB HD in RAID, for less than $70/month (with datacenters in 
NA (quebec), and France, and their own private global network)

Renting a VM (basically renting Cores and RAM) should not be crazy 
expensive. At Compute Engine prices, you're basically renting 1 core and 
4GB RAM for $100/month. That's not cheap by any stretch, but it's the 
standard that AWS has set for IAAS. You then pay for bandwidth, persistent 
disk, etc at prices that AWS has set.

Google basically copied AWS model and added some differentiation in 
isolated networks, and presented it all simpler. I wish Google had done 
some more innovation here, more like what ProfitBricks is trying to do. 
Google and ProfitBricks already use the same underlying VM technologies (ie 
KVM, which allows some live migration, etc). With ProfitBricks, you can 
start with 1 dedicated (not virtual) Core, 4GB RAM, and while live, detect 
increased traffic, and can scale up that same instance live up to 64 
dedicated cores, and 192GB RAM (without a restart necessary). KVM support 
for live migration is used here. ProfitBricks also support the isolated 
network configuration, even up to providing free loadbalancer over your 
instances, configurable by you. And their network storage is fast and 
consistent as they use only infiniband (not ethernet) for network.

But Google did say that this is a start. 

Google made a big deal of "consistent performance" for their persistent 
network block storage (which has been one of AWS archilles heels), but I'd 
have to see it. App Engine use of network storage for loading apps to 
startup has been anything but fast or consistent (see threads, even recent 
threads, about startup time variance due to slow and inconsistent times 
loading java classes from the "network storage").

Anyway, I have big hopes for Compute Engine. I had given up on App Engine a 
while back and rewrote my app for a "generic" linux VM, and looked at AWS, 
RackSpace, ProfitBricks and dedicated providers like 1and1, OVH. I'd like 
to use Google Compute Engine, and given the opportunity, would love to test 
it out during the preview. But I think we should hold the accolades for 
now. 

On Friday, June 29, 2012 9:10:24 AM UTC-4, Michael Hermus wrote:
>
> It is definitely not an apples to apples comparison, and App Engine should 
> be significantly more expensive using a simple $/GB metric.
>
> However, $0.039/hr/GB for Compute Engine vs. $0.64/hr/GB for App Engine 
> (1600% higher) did raise my eyebrows as well. Part of it seems to be that 
> the Compute Engine price (on a per GB basis) seems pretty darn low.
>
> On Friday, June 29, 2012 8:52:34 AM UTC-4, barryhunter wrote:
>>
>> You are not comparing like for like. 
>>
>> An app-engine 'instance' is not just a generic VM instance. 
>>
>> Its 'managed' for you - you dont need to install a OS, manage patches 
>> etc. Even a backed has an effective load balancer in front of it, a 
>> firewall. Access to other 'free' services, memcache, task queues, etc. 
>>
>> The classic IaaS vs. PaaS difference. 
>>
>>
>> On Fri, Jun 29, 2012 at 5:18 AM, pdknsk wrote:
>>
>>> Riddle me this.
>>>
>>> B2 256MB RAM $0.16/h
>>>
>>> http://developers.google.com/appengine/docs/python/backends/overview/
>>>
>>> n1-standard-1-d 3.75GB RAM $0.145/h
>>>
>>> http://cloud.google.com/pricing/compute-engine.html
>>>
>>>
>>>
>>>
>>

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