Asking myself how this makes business sense. Answering myself that it only does if Google hits a homerun based on: + Vendor/plat-form lock-in. + Data mining startups' traffic. + Access to startups' code and data. + Ability to pull the plug. For Vendor/Platform lock-in this could be virtual, ie the burden of switching the code base for administrative tasks to Amazon or Azure or some other provider could be prohibitive…
Points 2-4 would involve Google violating (likely) their own Ts&Cs with customers and (possibly?) state/federal law. But I think your Point 1 is highly likely. How many startups are going to build on Google's Cloud Platform, then after a year port everything to AWS, particularly if Google can prove that they're cheaper or at least cost-competitive with similar feature set. (Assuming that's true, of course, and that y…
But startups could easily use AppScale to move off Google and on to AWS/Digital Ocean etc. when they start to get real traction or when the free credits run out.