Google is now offering cloud server hosting services under the tradename Google Compute Engine. Its currently limited to Linux Virtual Machines. The pricing is comparable to that of Rackspace for the same specs. But for entry-level VM's, Rackspace still comes out a bit cheaper. And Rackspace still offers companies more OS options.
Where Google is known to excel is in scalability. So companies looking for massive scaling solution and high-performance computation of "BigData" should look into this. I do not know about Google support though compared to dedicated hosting companies like Rackspace or Softlayer, who have solid track record for excellent support.
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