Google’s Bold Plan to Overthrow Amazon as King of the Cloud
wired.com
wired.com
In short, Google has an agenda.
When it comes to generic hosting, it is very important that my host has no other agenda than getting paid by me.
So maybe they'll gain customers that have had positive experiences with their paid services?
Plus, in my mind, I see Google with this huge AppEngine that's shared. Other services allow you a lot more flexibility to build your solution. Is this accurate? Not sure, but sometimes perception is reality in marketing.