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I don't think the comparison is equal.

You are comparing PAAS to IAAS, but AWS does have Elastic Beanstalk which would be a more direct comparison e.g. PAAS. Like App Engine, Elastic Beanstalk handles the auto scaling without having to setup and understand all the details around EC2.

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You are quite right. Amazon does have different set of products that would also cover the pros of App Engine.

I think the comparison is more of "PaaS vs. IaaS" than "AWS vs Google Cloud Platform".

Yep, that seems fair. You made a number of valid points, looking at it from a PaaS vs. IaaS.

Google has Google Compute Engine for their IAAS layer. https://cloud.google.com/products/compute-engine/

Yes, and the ManagedVM will work as a kind of middle-man between GAE and Compute Engine to give greater flexibility on configuration.

For now, it's only in beta.

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