I'm in a similar boat.  I'm a small-business sysadmin turned developer.

We can work with our current VPS service to add load balancing, alter our 
front-end to be easily cloneable, spin up extra frontends as demand 
requires, and continue to work on new features.

Or we can go to AppEngine, get rid of all the old VB wholesale during the 
re-write, not worry about server maintenance, and our current estimates put 
us at a 50% monthly cost reduction before adding in costs from our new 
features.  The new features already running cost us less than $5 / month in 
AppEngine fees, but referring to the data is overloading the VPS.  We've 
had to add in rate-limiting on the GAE side so we don't fry the VPS with 
data requests.

GAE is 100% dependent on your use case.  If you have lots of heavy burst 
traffic or need geographic redundancy, and don't have a lot of 
infrastructure support or budget, then it's great.  If you spend just an 
hour or two each month tweaking resident instances and pre-pay amounts for 
instance hours, it gets even better.  But it isn't for every project.

On Monday, February 17, 2014 3:43:45 PM UTC-6, GregF wrote:
>
> As many people have said, it depends on your use case. In my case, I am an 
> application developer, not a sysadmin - I like to spend my time making 
> applications, not worrying about fine-tuning memcache, database 
> replication, software upgrades, and load balancers. Appengine has been 
> fantastic for me - my application took off from 0 to over a million users, 
> and I haven't needed to think about capacity issues, security or 
> availability. I like to say that if my app somehow got onto the Letterman 
> Show, I would be popping champagne corks instead of blood vessels - I have 
> the best sysadmins in the word looking after my service.
>
> And all of this cost me less than $100 a month - and much less than that 
> when volumes were smaller. So Appengine has let me scale from zero to 
> serious volume without any pain, and sure, I could probably have saved a 
> few bucks hosting somewhere else, but it would have cost me days in extra 
> support time (and therefore dollars) and years of life expectancy because 
> of the stress involved.
>
> So I LOVE Appengine, and believe it offers very good value. I'm not saying 
> you have to love it too - in fact because you sound like you prefer to 
> build and maintaining your own stack, you'l probably hate it because all 
> the work is done for you - you're a sysadmin at heart. But for 
> developers, Appengine is an excellent platform.
>
>

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