Amazon has come out with AWS Elastic
Beanstalk<http://aws.typepad.com/aws/2011/01/introducing-elastic-beanstalk.html>and
seems to be targeting GAE. First out is Java support, but
more languages are being planned.

AWS Elastic Beanstalk will make it even easier for you to create, deploy,
and operate web applications at any scale. *You simply upload your code and
we'll take care of the rest. *We'll create and configure all of the AWS
resources (Amazon EC2 instances, an Elastic Load Balancer, and an Auto
Scaling Group) needed to run your application. Your application will be up
and running on AWS within minutes.
...
Elastic Beanstalk was designed to support multiple languages and application
environments. We are already working with solution providers to make this
happen.
...

http://aws.typepad.com/aws/2011/01/introducing-elastic-beanstalk.html

Each application runs in a container of a particular type. The default
Elastic Beanstalk container lets you run Java applications in a Tomcat
environment. Your application can make use of Servlets and JavaServer pages
and you can mix the two of them as you would like. *You can also use all of
the usual Java EE classes and APIs as you would like; Elastic Beanstalk
won't get in your way!*


http://aws.typepad.com/aws/2011/01/aws-beanstalk-programming-model.html

Competition is good and I believe it will help Google App Engine get better.

Regards,
R.Rajkumar

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