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Seems to be running on AppEngine by the look of it. AppEngine has the limits far too low for basic stuff like this, they should really re-look at their service offering if they want to actually compete in the market.
I'm guessing like everything else google, it will be shutdown leaving many developers stranded. We built an entire site around GAE and it was the biggest mistake of my professional career!
I think App Engine can be just fine depending on your needs. It's great for prototyping ideas. I just find that at some point you have to draw a line as to whether you're going to pay GAE to serve your project or if you're going to take care of that overhead yourself.
I get what you're saying in that it can be used for something currently, but the opportunity being missed here is enormous. When Gmail launched with 1GB of storage when everyone else was doing 5mb, this was a pretty massive cost at the time. However, it was one of the best things Google ever did as it kick-started their entire online application business.
Google has a similar possibility here - they can really take over the webapp hosting environment and create massive ease of use and integration for their various web platforms and APIs by making it easy to integrate them into AppEngine. The requirement for this is massive adoption, and the requirement for massive adoption is, at the very least, providing similar cost/performance as a random dedicated host. AppEngine/Google compute engine are barely competitive with other very expensive, high margin services such as AWS. Google is missing out massively here because they want to squeeze out traffic penalties with a terrible business model that gives users across the web a nice error message.
They've at least had the sense to be guilty enough to remove their branding from the error page though.
When GAE first launched the free quotas were much nicer than they are now, they got scaled back significantly during Google's big return-of-Larry-as-CEO shift towards heavy monetization.
1GB was a huge gimmick, because 99.9% of people couldn't get 1GB into their accounts if they tried. They just threw the huge number out there because they knew they could handle all actual current email demand.
Seems to be running on AppEngine by the look of it. AppEngine has the limits far too low for basic stuff like this, they should really re-look at their service offering if they want to actually compete in the market.