Ganeti - Virtual Servers Management Tool from Google
code.google.com
code.google.com
1. It's hard to tell which projects are official Google projects and which aren't.
2. The total lack of real names is disturbing to me. e.g. look at http://code.google.com/u/imsnah/ -- it's completely useless.
Official Google products are not hosted as normal 'projects': the URLs are code.google.com/product or code.google.com/apis/product instead of code.google.com/p/project.
I mean thats pretty much what ganeti provides right?
I do see them having plenty of use for virtualization when provisioning machines to run non-infrastructure, their client software, other people's software, etc. Its usefulness for software testing should be obvious.
I don't know if they use full x86 virt. for it, but your App Engine processes have several layers of OS sandboxing around them.