This is HUGE. Google just announced their "app engine".

http://googleappengine.blogspot.com/2008/04/
introducing-google-app-engine-our-new.html

The evolution of web apps went like this:

1. HTML on local servers
2. Linux/apache/mysql/php (LAMP) on local servers
3. Hosted LAMP
4. IBM talked about, but Amazon actually offered "utility computing"
5. Google allowed mashups with their web services
6. Walled-garden social sites like facebook introduced apis for their services
7. Google released a fully hosted, sandboxed, web-api. (Free utility computing)

"Infrastructure" is becoming obsolete.

Hobby web programmers don't also have to be system administrators.

This kills the traditional baremetal hosting model.

Many other companies will try and follow suit.

Google owns your internet.