What Google Compute Engine means for cloud computing

Originally posted on Gigaom:

Google’s new infrastructure-as-a-service offering Compute Engine is a big, big deal in the world of cloud computing. My colleague Om Malik covered the details in a post earlier today, and we’ve both offered our pre-emptive views in posts breaking the news that Compute Engine was coming and then confirming it would be announced at IO. Now that it’s a reality, here are five things I think Google Compute Engine means for the cloud industry.

  1. Platform as a Service is still too ambitious. Microsoft (s msft) couldn’t make a cloud business out of Windows Azure as it was originally built, and apparently Google couldn’t with App Engine, either. That message was made clear in my discussion with Microsoft cloud boss Satya Nadella at Structure last week, and during a chat with Google’s cloud leaders last night. Trying to get ahead of Amazon Web Services, they also got

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