I figured it out. The generate backend context menu item has been replaced 
by a new module 
type. 
http://android-developers.blogspot.com/2014/06/new-ways-to-connect-your-app-to-the-cloud-android-studio.html

On Friday, November 28, 2014 8:25:17 PM UTC-8, Clifton Craig wrote:
>
> I'm trying to get a HelloWorld app going with Google Cloud Tools using the 
> App Engine. I was having all kinds of errors with version 0.8.1 and 0.8.8. 
> I just upgraded to 1.0 RC2 and I don't even see the option under the tools 
> menu anymore. Has this feature been removed, retooled, o relocated? Where 
> can I find info on it?
>

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