Essential, memory state is copied to the new host, the VM is stunned for a millisecond and the cpu states is copied and resumed on the new host (you may see a dropped ping). All the networking and storage is virtual anyway so that is "moved" (it's not really moved) in the background.
This conjures up hilarious mental imagery, thanks
Very cool.
https://cloudplatform.googleblog.com/2015/03/Google-Compute-...
The disks are all on the network, so no need to move anything there.
This has memory performance characteristics - I ran a benchmark of memory read/write speed while this was happening once. It more than halved memory speed for the 30s or so it took from migration started to migration complete. The pause, too, was much longer.