I'm another developer with concerns about the privacy policy.

"Content. Google App Engine stores, processes your application source
code and content in order to provide the service to you."

The fact that the above isn't even grammatically correct doesn't do
much for my confidence.

Marzia - you mention that google employees might look at the code "if
your application is causing system wide instability". Is that really
necessary? Could you not just shut it down? If you were interested in
determining how it caused instability in the face of controls you have
put in place to prevent that situation, could you not work with the
customer to e.g. isolate the problematic code so that you wouldn't
have to get involved with the real application? Would you notify the
customer and give them the opportunity to pull the code before you get
involved with it?

I am curious about your answers, and I do believe in the good
intentions of the app engine team and Google in general. But also, and
as Colin said, it would be excellent to get that kind of clear
language into the legal documents. Data privacy concerns are a major
barrier to cloud adoption in business (for anyone with doubts, there's
this great tool called Google Search you may want to try). The kind of
clear language you've used here would really help to mitigate that
issue, were it legally binding, or even prominently displayed (in the
FAQ or similar).

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