The LAMP Engine
LAMP web hosting can evolve to offer the scalability of Google App Engine (GAE for short).
As discussed in the post “Google App Engine Limited”, GAE does not currently scale bigger than a dedicated server. What it offers is “natural” scalability up to that size and “pay for what you use” billing.
With traditional VPS hosting you can allocate resources manually. You do not have automatic resource provisioning, and as a result you either don’t have enough resources for your service or you pay for more than what you use.
However, Xen virtualization (used by VPS hosting) could evolve to offer automatic resource provisioning, and “pay for what you use” billing as well. It is already possible to move VM between physical servers with no service interruption. A controller could be designed to optimize resource allocation per server, migrating VM as required, for example migrating small services in response to slash-dotting, combining high-bandwidth low-CPU services with low-bandwidth high-CPU services, or automatically matching services which have complementary load patterns.
Winpdb - A Platform Independent Python Debugger