In my opinion, this pricing change has ability to destroy AppEngine.
In my last 10 years of experience in enterprise IT, one thing that has
remained constant is how product is priced. Oracle, Msft, IBM,
Informatica, Cognos, BusinessObjects.... everyone prices server side
products by number of CPUs/Cores. I have personally built servers for
same product that used to be 32-bit 4 Core 4GB memory, and now
building 64-bit with 12-24 Cores, and terabyte of memory. Given the
fact that most products are memory hogs, what i have not seen is
product vendors suddenly jump the ship to start charging for memory
since that is what is being consumed more. Do product companies see
the dollars in that kind of switch? Definitely! So, why dont they do
it? 'Cause they understand the time and effort their customers have
put in to understanding the current offering, and resulting alignment
of corporate app development strategy, resources, hiring, and
maintenance dollars.

And out here we have Google, where in 3 years of going live with the
product, we are seeing paradigm shift in pricing. And this shift has
come as a total disregard for the application developers time, effort
and contribution to the platform. Existing developers with really
large applications are being forced(without alternative option) down a
path that is unknown, while existing issues have not been resolved and
features asked for years back not delivered. Personally i dont even
have time and energy to understand all the new jargon that has been
thrown out there.

And all the while we are not even talking about increase in pricing
can be as high has 4-8 times for some applications. For comparison
sake, if someone were to tell Google that from today all their
expenses are going to be 4 times of yesterday, we would surely see dip
of a lifetime on ticker symbol GOOG. I as a developer am willing and
able to pay at most 1.2 times of what i am paying right now, and
definitely not 2x and above. I know i am going to be disappointed.

Also, from my personal experience in application development, no set
of individuals can be sure how the change is going to play out at the
level AppEngine team is going to make. AppEngine team is just assuming
that as AppEngine scales to the next level, the current set of changes
will be good enough and dont require another paradigm shift. Its like
a developer assuming his next API will result in $10million worth of
customers.

All in all, only thing a developer cares is his app runs on the
specified API without errors. No one is looking for any more dials and
whistles for 4X money factor.


Note: One exception to CPU/memory pricing that has come up recently is
Microsoft Server 2008 product where you get 64-GB memory or unlimited
memory on the box as per license.

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