Video: Google Compute Engine vs Rackspace

Run your large-scale computing workloads on Linux virtual machines hosted on Google's infrastructure. Use world class data centers that provide unparalleled performance for your computing needs. Easily scale to tens of thousands of cores on infrastructure designed for large-scale computing.
Rackspace Cloud offers four alternative hosting products: Cloud Servers for on-demand computing power; Cloud Sites for robust web hosting; Cloud Load Balancers for easy, on-demand load balancing and high availability; and Cloud Files for elastic online file storage and CDN.Rackspace Cloud hosting customers never need to worry about buying new hardware to meet increasing traffic demands or huge traffic spikes.
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2012 - Google Compute Engine - the new threat to Amazon. Rackspace keeps calm

This week, Google decided to seriously spoil the Amazon's life. First, they released the clone of Kindle Fire, which makes Amazon's tablet irrelevant, and now they are launching a clone of Amazon's cloud platform Amazon Web Services, significantly reducing the pricing for computer resources. Google's new IaaS-platform is called Google Compute Engine and (like AWS) allows to rent virtual servers and scale cloud-applications so that they could work at any load. In theory, the overall power and reliability of Google's cloud infrastructure can beat Amazon. During the Compute Engine  presentation Google engineers demonstrated a genome-analysis application running at 600,000 cores.

And the cost of Google Compute Engine instance will start at $0.055/hour. For comparison - Amazon's same small instance costs $0,08/hour. Storage and bandwidth pricing is almost the same. Thus in terms of cost and reliability, Google's platform is more attractive.

However, Amazon still has some advantages. The first - is Windows-instance support (Google Compute Engine currently supports only Linux). The second - is a variety of middle-ware tools. Though Google has already partnered with RightScale and some other cloud management providers, still for now AWS provides much more tools for developers and IT administrators.

And the third advantage - is time. For now Google Compute Engine will be available only to the small number of selected customers, and it's unknown when it opens to the public. During this time, Amazon can lower the prices and invent new features that Google hasn't cloned yet.