Last week Google announced it’s AppEngine. It took a couple of days and a conversation with a friend to realize some of the potential for this service.

Google’s AppEngine service is a framework for developing web-based applications. Google provides free hosting for anything built with it. Right now Python is the only supported language, but Ruby and PHP are on the horizon.

What if someone built a new music distribution application using Google’s AppEngine? A savvy developer could create an easy-to-use application for bands to create sites with the means to upload, share or sell mp3 downloads (or FLAC or whatever). Tie it in with Google’s Checkout service and you’ve got a winner.

How long before someone develops a social networking application that makes Facebook mute using Google’s AppEngine and social networking framework? Or tie in to Google’s mobile technology? Say what you will about Google holding the keys. They certainly exhibit vision. Big as they are, I think this is only the beginning. Dark fiber anyone?