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Summary:

Until now, Google’s App Engine has been a great playground for coders: Everyone gets a daily quota of computing resources to play with. But without understanding how pricing will work when you go beyond those quotas, it’s been harder to understand business models built on it. […]

billing-blog-post-100percent-trimUntil now, Google’s App Engine has been a great playground for coders: Everyone gets a daily quota of computing resources to play with. But without understanding how pricing will work when you go beyond those quotas, it’s been harder to understand business models built on it. Today, however, Google has shown us how the pricing model will work.

The approach is similar to AdWords: You set a daily budget, and when your application exceeds its free quota for that day, additional capacity comes out of the budget. The cost is split across processing, storage and bandwidth.

It’s easy for Google to offer a free daily quota because App Engine isn’t built around virtual machines the way competitors like Amazon’s EC2 are: You’re not paying by machine, because there aren’t any machines. Competition from Google’s free quota model may encourage other clouds such as Amazon to introduce free cloud computing quotas for small-traffic applications; meanwhile, Google is carefully launching an ecosystem for developers to build and sell their cloud-based software.

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  1. Nice. Also the system status dashboard showing reliability is so f*gging cool– like an early Christmas present for apps developers!

  2. Lenny Rachitsky Tuesday, December 16, 2008

    I second that Morris, that’s potentially a lot more substantial in the long run for the cloud computing space…the need for transparency in these infrastructure services. The more that the anchor tenants of the SaaS world can do to build trust, a big part of which is being transparent, the more success the SaaS/cloud industry will see.

  3. Google needs to come out with a Java version for App Engine ASAP to get some real traction.

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  7. December 17, 2008 | next media update Thursday, December 18, 2008

    [...] Google Opens Up App Engine Pricing Model GIGAOM Until now, Google’s App Engine has been a great playground for coders: Everyone gets a daily quota of computing resources to play with. But without understanding how pricing will work when you go beyond those quotas, it’s been harder to understand business models built on it. Today, however, Google has shown us how the pricing model will work. The approach is similar to AdWords: You set a daily budget, and when your application exceeds its free quota for that day, additional capacity comes out of the budget. The cost is split across processing, storage and bandwidth. Source> [...]

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