From talking with some of the AppEngine developers, my impression is that they are trying to get developers to write a bunch of free/cheap applications on Google AppEngine that they can then use to persuade people to sign up for Google Apps for Your Domain. Whatever others don't write (well enough) they will crank out themselves.
Besides that, they already have products that implement large parts of 37Signals's applications' functionality. It is just a matter of them packaging it all up into something more usable and then marketing it. A large part of 37Signals's success is due to marketing; Without Signal vs. Noise nobody would know about them.
Besides that, they already have products that implement large parts of 37Signals's applications' functionality. It is just a matter of them packaging it all up into something more usable and then marketing it. A large part of 37Signals's success is due to marketing; Without Signal vs. Noise nobody would know about them.