Last week we were wondering what was happening to Jaiku as Petteri posted something that caught our eye. It seemed that he got the week’s mixed up as last night Google announced in Google Campfire that Jaiku will be one of the first services to be running on the new Google App Engine. Let’s hope this will shorten the somewhat lengthy development cycles we’ve seen since Google acquired Jaiku last year.

Google App Engine, according to TechCrunch (who’s Michael Arrington crashed the Google Campfire event with Robert Scoble), is an ambitious new project that offers a full-stack, hosted, automatically scalable web application platform consisting of Python application servers, BigTable database access and GFS data store services. According to Arrington the service is somewhat less flexible than Amazon’s S3 as it requires developers to lay the whole development stack on the Google servers where as in Amazon’s case you can pick and mix.

The Camp Fire website states that all users of Google App Engine get free quota of 500MB in persistent storage, and 5M monthly pageviews. In other words, developers are able to scale to a few million users without “infrastructure headaches”.