Google enters utility cloud computing business

Google may be getting ready to take on Amazon’s online computing and storage services with it’s new App Engine. The lucky developers that were invited to be involved in the initial phase will have the chance to build apps that can be hosted and scaled infinitely on Google’s infrastructure.

The App Engine will run in the same Google data centers that host GMail, Google Docs and other online programs. Initially up to 10,000 developers will have access to the preview edition of App Engine. Every developer will be able build up to three applications, each of which will have 500 MB of storage and the CPU cycles and bandwidth to support about 5 million page views a month. All of this will be free, and when the service is out of preview Google will announce the ability to buy more storage, bandwidth and CPU cycles.

For some developers, a service like this eliminates the need for Amazon Web Services. It could also cause problems for startups such as online storage company Elephant Drive and platform-as-service vendors such as Bungee Labs. However, the App Engine does have its limits, some of which will be addressed as time goes on. For now, no files larger than 1MB can be uploaded to the site and Python is the only language supported by App Engine. Other limits include the inability to buy extra time and a focus only on web applications. (GigaOm)

Look for utility computing to be the next land rush with every big player coming to the game over the next few months. There is significant potential for utility computing to be very disruptive to the web hosting business. I wish we could foster the same sort of competitive environment in access.