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As Google exec Vic Gundotra was introducing Google's App Engine -- a suite of "cloud computing" services for web application developers -- he asked everyone to applaud Google's chief rival in the market, Amazon (AMZN). Why? Later, in a Q&A with reporters, Gundotra explained that Google App Engine isn't really competing with Amazon Web Services:

I'm not sure they're (App Engine and Amazon Web Services) as competitive as some would like to make them. We're delighted to see consumers use Amazon Web Services (AWS) or use Google App Engine. We just want them to make great apps.

Really? Not competing? Isn't Google offering a commercial counterpart for each of Amazon's components? And expecting you to choose one or another to run your app?

• Servers: Amazon's = EC2; Google's = Python application servers

• Database: Amazon's = Simple DB; Google's = BigTable

• Storage: Amazon's = S3; Google's = GFS.

While there are differences between the two platforms -- Amazon (AMZN) sells its different services like server time and storage space a la carte, and Google bundles them together, for example -- it's a stretch to say they're not competing. More likely: A poorly conceived Google keynote joke bombed.

See Also:
Google's App Engine Opens For Business
Google Taking On Amazon With App Engine
Amazon Strikes Back At Google App Engine With EC2 Upgrade