That's a valid reason. Instead of having to deal with both ram and cpu to base the price on instances. But it's still confusing to me. What if an application has to spawn a new instance just because of traffic load and the GAE server being overloaded by running too many other instances (with other customers' applications) at the same time? If the server would not be so crowded with other customers' apps running in the same server then a new instance would not be needed. So then the customer has to pay for an extremely expensive new instance just because Google has crammed too many instances (from other customers) into each server!
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