Google announced Google App at Campfire One.
You can see their presentation at YouTube:
http://www.youtube.com/watch?v=3Ztr-HhWX1c
The movie is kindly prepared and easy to follow.
Google App Engine is a SaaS style Web application platform for developing and running Web applications. (Currently it is a 'preview release' and only available to the limited number of developers.) Python is the language for programming on the platform and the platform comes with APIs (and library implementation) for Datastore, Users, URL Fetch, and Mail, in addition to those which are already available with stock Python.
This is the ultimate style of agile web development with "zero" start-up cost as hosting service itself is also included in the platform. While lots of other companies are trying to do the similar thing, you know, it is Google, which is worth keeping our watch on.
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