Sounds too good to be true, about how “cheap” App Engine is.
We just migrated last month one of the tiny startups we bought this year (a team of 6 and their Android app) from App Engine (they’re all devs) to our existing AWS infra to reduce monthly cost (we use like half of the services one can see in AWS: rds,redshift,lambda,cloudfront,alb\elb,route53,dynamodb,sqs,sns,elasticache,etc’).
Somehow their existing deployment was too expensive, I have no idea why, whether traffic amount, or compute time, or whatever, (my team lead did all those calculations and took a decision to migrate) but the result was reducing their monthly running cost by x4 approximately.
We heavily use Spotinst (service that allows managing AWS spot instances) so our EC2 prices are low, anywhere there’s a stateless app running, it’s on spot (from 70% to 80% discount from real EC2 price), and all data is kept in other data storages and databases on AWS (sometimes in on-demand ‘full price’ EC2 cluster).
I believe App Engine is great for many use cases, and maybe even covers the needs of those enterprises you talk about, but I would still be careful to compare it like this to what AWS has to offer (I mean, with a confidence like there’s only one truth in this world ;) ), because for example I can prove that on spot instances you can run the same workload but cheaper than in App Engine :) .