...what the heck is this going to mean for licensing? Are we going to pay per processor tick as opposed to the number of cores, or something?
That's not where Google makes the money (always worth keeping in mind when examining a service provider IMHO).
No, they will probably want to have explicit, contractually enforced access to your IP, and to the personal details of all your employees. Just in case someone dares to wish the CTO good luck trying to get any sort of SLA or KPI of the path between your company and the Google spy factory.
I am very glad to keep a server park going - with the IP we hold even a hint of going cloudy would make us fail audit, not to mention that we'd be buried in law suits for exporting data to a US owned organisation which causes all sorts of legal headaches.
No thanks. Nice try, though.