Google App Engine is a cloud based computing environment. it's best to get info about it from the source: http://code.google.com/appengine/ it has advantages and dis-advantages as do all environments. the largest thing to consider is the google Big Table datastore as it compares to traditional SQL system. there are other restrictions to make the cloud environment work.
see "Deploying on Google App Engine" here: http://web2py.com/books/default/chapter/29/13 good luck! cfh