Google’s App Engine is the latest service to reduce operating costs for Web startup

Google’s App Engine offers features similar to Amazon’s Web services. Tom Stocky, a product manager at Google, says that the company has given a great deal of thought to building an environment to help Web-based applications get off the ground quickly and grow easily. “Even the most proficient developers can get benefit here, because they get access to the same infrastructure Google engineers use,” Stocky says. For example, in addition to being hosted on Google’s servers, developers can use Google’s software to authenticate customers. App Engine, Stocky explains, also includes access to some of Google’s own methods for managing data, including the company’s load balancing algorithms and data storage systems that allow for faster access to data.

If App Engine works as well as I expect, it will reduce the real startup risk — and will hopefully reduce the perceived risk as seen by the venture capitalists. That will mean more startups –> more successes –> more productivity growth –> more wealth for everybody.

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