Google I/O: Day 1 (live blog)

Editor's note: We used Cover It Live for this event, so if you missed the live blog, you can still replay it in the embedded component below. Replaying the event will give you all the live updates along with commentary from our readers and a few CNET editors. For those of you who just want the updates, we've included them in regular text here. To get the key points from today's announcements, you can check out our summary of what got announced, in our roundup here.

Google kicked off two days of announcements, educational sessions, and geek mayhem on Wednesday with the first keynote at Google I/O 2010.

The event began at 9 a.m. PDT Wednesday morning at the Moscone Center in downtown San Francisco. Wednesday's event focused heavily on Web video and application development strategies, with Google announcing that it would open-source the VP8 video codec it acquired from On2 Technologies and release an upgraded version of Google App Engine for Business.

The company also announced that Google Wave is now open to the public, and that Chrome OS Netbooks will have a Web application store at their disposal later this year.

8:49 a.m.: Hey everybody. We're about 10 minutes out from the start of Day 1 of Google I/O. About 5,000 people are expected at San Francisco's Moscone Center for the conference, which runs Wednesday and Thursday. Check out my colleague Stephen Shankland's post earlier today on a bit of news that leaked already: the open-sourcing of the VP8 codec that Google acquired from On2 Technologies.

8:51 a.m.: All I've heard about Smart TV is that it's an Android system, but we'll await further details.

8:52 a.m.: I'm hearing those, too. Palm made several appearances at last year's Google I/O.

8:56 a.m.: It's too early in the morning for Google's electronic DJ, but I suppose it's better than the usual pre-keynote schlock. One of my colleagues gets nauseous every time he hears The Black Eyed Peas after CES.

8:57 a.m.: From what we understand, by the way, today is Web technologies and maybe some Google TV stuff, and tomorrow is Android. We might hear stuff about both areas on each day, but we'll see.

9:00 a.m.: Here we go: VP of Engineering Vic Gundotra takes the stage.

9:01 a.m.: Vic welcomes the 5,000 people in attendance and the others who are watching the YouTube streamcast, the first time they've done that. This is the largest Google I/O to date, although there have only been three.

9:02 a.m.: Vic promises a few surprises for today. So, where did Google get the I/O name? When Google was putting together the event for the first time, they batted around a few ideas that included openness, inclusiveness. I/O is mostly known for the input/output function, but Google's redefining it as innovation/openness.

9:03 a.m.: "The Web belongs to all of us," Gundotra says. He goes back to last year, when Google evangelized HTML5. He's showing a graph showing how companies have supported HTML5, joking that Apple's support came after "a late-night Steve Jobs e-mail."

9:05 a.m.: Gundotra wants to know how the industry can make the Web faster, and improve the monetization of application stores for mobile devices. He promises that Google will reveal its strategy for those goals during the two-day conference. Before introducing the first speaker (likely CEO Eric Schmidt), Gundotra asks attendees if they like the free Android devices Google sent attendees before the show. Believe it or not, they do.

9:06 a.m.: Gundotra promises "more than one surprise" for tomorrow's keynote, which is scheduled for the early hour of 8:30 a.m., following the developer party. And with that, he introduces Sundar Pichai, one of the architects of Chrome OS. He's going to talk about HTML5.

9:07 a.m.: Pichai starts off by noting that consumption of other mediums, such as radio and television, is dropping as people spend more and more time on the Web. That means that developers have to react to that shift, switching development efforts from desktop-based applications to Web-based applications.

9:08 a.m.: 2004 was the tipping point: AJAX and the Web 2.0 revolution happened, Pichai said. Google Maps, Facebook, and Twitter drove that change in later years. Now, Web developers have to make Web applications even more powerful, which means adopting HTML5 technologies, he says.

9:10 a.m.: For example, linking Web applications to GPU hardware. Or, linking business applications on the Web to local file systems. Two years ago, three browsers supported HTML5: Safari, Mozilla, and Opera. The next year, Chrome joined the party, and by the end of this year, those APIs should be in "all modern browsers." This paves the way for the first--and probably not last--dig at IE.

9:11 a.m.: HTML5 is making its way to the mobile Web as well, Pichai says. Demo time: Gmail on HTML5 features will be the first offering to the demo gods. Pichai: "the most popular activity in Gmail is sending e-mail." Uh, right.

9:12 a.m.: (Stephen Shankland) In fairness, Microsoft's IE9 platform preview shows a lot of promise for supporting HTML5, CSS3, Scalable Vector Graphics, etc. But it's promiseware at this stage, and Microsoft seems frosty about WebGL.

9:12 a.m.: They show off the newly announced drag-and-drop features in Gmail, and a notifications API that allows users to receive Gmail alerts when not logged into Gmail.

9:13 a.m.: (Stephen Shankland) For more information on third-party extensions in Gmail, see this story today: http://news.cnet.com/8301-30685_3-20005356-264.html

9:14 a.m.: More demos: MugTug and Flickr are coming up. MugTug is showing off its Darkroom application, MugTug uses HTML5 technologies to create a Web-based photo editor, and its CEO takes us through a few photos. He edits a very detailed photo of a green frog in the browser, removing the "red-eye effect" from a frog with, well, red eyes.

9:14 a.m.: The big unknown for HTML5 storage is what will happen with IndexedDB interface. LocalStorage is limited, the SQLite option looks to be dead in the water, but IndexedDB is still months away from reality at best--even though it has some solid browser support.

9:16 a.m.: Excuse me, the first correction of the live blog: Clicker, not Flickr, is up next. "TV Guide for the Web," goes the pitch. The idea behind the application is to discover online video across the Web, and it will now work on the large screen, called Clicker TV.

9:17 a.m.: (Stephen Shankland) Yeah, Flickr on TVs is more likely to work with Yahoo's attempt to work with Net-enabled TVs, not Google's.

9:18 a.m.: Clicker TV uses Canvas and Webworkers parts of the HTML5 suite of technologies to power the application. The example shown is a search for Charlie Rose episodes, and the demo gods rear their ugly heads a bit as the browser locks up for a brief second.

9:18 a.m.: Shankland is such a comedian.

9:19 a.m.: Clicker TV threatens to show the last episode of Lost, and if they give anything away from what I missed last night I'll have to throw my Mac at the stage. The demo is basically showing how easy it is to scroll around the Clicker TV site, browsing and filtering video content based on genre or source, and it's all made possible with HTML5 technologies.

9:21 a.m.: Pichai is talking about On2, which Google acquired last year but didn't finalize until a few months ago. VP8 was at the heart of the application, and "it's really suited for the Web," Pichai said.

9:22 a.m.: The Web video discussion is filled with minefields. The new WebM codec from Google has promise, but Steve Jobs and patent lawyers appear to be rattling the sabres. Apple and Microsoft prefer the H.264 codec. "We believe it's the best-in-class codec for real-time streaming," Pichai says, but it's not all a technology discussion.

9:22 a.m.: (Stephen Shankland) VP8 also helps with bandwith costs, a big concern for Google's YouTube division. Pichai formally announces that Google is open-sourcing VP8 under a royalty-free license, calling it WebM.

9:23 a.m.: WebM is VP8 plus Vorbis, according to Pichai. Mike Shaver from Mozilla and another gentleman from Opera whose name I didn't catch are coming on stage to talk about WebM.

9:24 a.m.: (Stephen Shankland) Mike Shaver, VP of engineering at Mozilla, prepares us for the era of millions of cat videos in WebM.

9:24 a.m.: Mozilla is going to demo WebM, promising "millions of kitten videos." YouTube is going to support WebM starting today, offering great performance, Shaver said. "We want to see HTML5 reach its full potential."

9:25 a.m.: (Josh Lowensohn) The video demo is barely playing, though. I blame that on the connection here.

9:25 a.m.: Many Web technologies are usable with no strings attached, Shaver said. That's led to an explosion in Web-based content. "We've seen what can happen when the terms change on the whim of one organization," Shaver said, drawing applause for the clear reference to Apple's battles with Adobe's Flash.

9:25 a.m.: (Stephen Shankland) A Twitter comment from Microsoft's IE guy, Chris Wilson: "hey, it took 10 minutes for him to whip out the 'modern browser' bitchslap."

9:27 a.m.: Open video is now here in high quality, Shaver said. It's just like text at this point, he said. Shaver's demonstrating a project that Mozilla built completely with HTML5 technologies and WebM, which looks like a District 9-clone. Firefox will be supporting WebM, which isn't that surprising.

9:28 a.m.: Shaver's done with his part. Hakon Wium Lie of Opera is next.

9:28 a.m.: (Stephen Shankland) What's up with 1080p video with WebM? A conspicuous absence.

9:29 a.m.: Lie fires up his system in order to launch a presentation. Lie is the CTO for Opera, and refers back to a manifesto Opera published in 2007 calling for an open video format for Web. "The great news here today is that WebM has joined the list."

9:29 a.m.: (Stephen Shankland) Mozilla's blog post about WebM: http://hacks.mozilla.org/2010/05/firefox-youtube-and-webm/ "Hardware companies, encoding providers and other parts of the video stack are all part of the list of companies backing WebM."

9:30 a.m.: Lie notes that Tim Berners-Lee didn't patent the Web, saying that we need an open format for the Web. He moves into a demo of Opera running WebM video, showing off a video of a celebration in Opera's home city of Oslo.

9:30 a.m.: (Stephen Shankland) Opera's blog post about WebM: http://labs.opera.com/news/2010/05/19/ "This is a big deal, and the day will be remembered in the history of the Web. At Opera, we're proud to add support for WebM into a Labs build."

9:32 a.m.: Lie is showing how Opera and developers can eliminate much of the JavaScript code from their code with the newer technologies. We can get rid of half the images on the Web that are there for styling purposes with these new technologies, he says. He urges attendees to start using these technologies in their daily lives, not just in their coding.

9:32 a.m.: Lie thanks Google for spending time and money (over $100M) getting WebM off the ground. He says he's looking forward to ensuring the Web stays open over the years, and he believes that Web access will become one of the human rights of this century. With that, he departs.

9:34 a.m.: (Stephen Shankland) hardware support list for WebM: AMD, Nvidia, Qualcomm, Broadcom...

9:34 a.m.: Pichai is back. The entire industry needs to make these kinds of projects work, Pichai said. He puts up a slide with dozens of companies supporting the WebM project, which requires both software and hardware partner support. Microsoft and Intel are curiously missing from both sections.

9:35 a.m.: Kevin Lynch, CTO of Adobe, is coming up next. Lynch is no stranger to the spotlight over the last couple of months, given the high-profile battle between Adobe and Apple.

9:36 a.m.: "HTML5 is great," Lynch says. A few weeks ago at Web 2.0 he promised that Adobe would deliver "great" HTML5 tools, and he's about to go into Adobe's work on HTML5. Dreamweaver is up first.

9:37 a.m.: Everyone's starting to target multiple devices with their code, he says, and so Dreamweaver supports a function that lets you see alternate CSS style sheets within the Dreamweaver application. It's the same HTML5 code but you can understand how the application will look on different platforms. "Big productivity increase," he says.

9:38 a.m.: He runs through a few code-editing features that make it easier for developers to see the immediate impact of code changes, including support for transitions within the code.

9:38 a.m.: (Stephen Shankland) News story on Adobe Dreamweaver getting HTML5 and CSS3 support: http://news.cnet.com/8301-30685_3-20005351-264.html

9:40 a.m.: One other thing in Dreamweaver is better support for working with graphics and images, creating moving images and using Illustrator to create effects. That code can then be inserted back into Dreamweaver, making it easier to preview changes that call for richer graphics.

9:41 a.m.: As Lynch bores us few non-developers in the crowd, a bit of news leaks out: Google Wave is now open to the public: http://googlewave.blogspot.com/2010/05/google-wave-available-for-everyone.html

9:42 a.m.: Lynch is running through additional graphics editing enhancements in Dreamweaver. He's managed to get through 5 minutes without making a reference to Apple or the iPhone, which perhaps means that Adobe is ready to move on from the very public dispute.

9:43 a.m.: "Now, there's one more thing I want to talk about: support for video." Adobe is going to put VP8 inside of Flash Player, which will get it in front of a billion people, he says. Adobe is also working with Google on Flash devices, as we all know, and Lynch essentially confirms tomorrow will be Android day by promising more on that topic tomorrow.

9:45 a.m.: (Stephen Shankland) With Adobe putting VP8 in Flash and Google putting Flash in Chrome and maybe Android, the alliance there looks pretty strong and mutually beneficial. The wild cards so far are Microsoft and Apple for Web video.

9:45 a.m.: Pichai is back to talk about problems: it's hard right now for users to find Web applications, he said. Shrink-wrap software was on store shelves, and Pichai gives a shout-out to our colleagues at Download.com in pointing out another popular way to discover desktop applications. But the Web is changing that: it's hard to find reviews, it's hard to find quality, and it's much easier to find good applications on mobile phones.

9:45 a.m.: Also, developers need to know how their applications are going to reach the public, since they aren't going to invest in application development unless they know they'll see a return. These are problems that Google has been thinking about, and he's going to preview the Chrome Web Store.

9:47 a.m.: Chrome will have a new "new tab" page, that will promote several Web applications directly on the new tab page. Tweetdeck is demonstrated as one of those featured applications, and Pichai shows how Tweetdeck works as a Web application.

9:47 a.m.: (Josh Lowensohn) Obligatory link to Download.com's directory of user- and editor-rated Web apps: http://download.cnet.com/webware-apps/

9:48 a.m.: He then shows how you access the Chrome Web Store, which brings up an app store-like list of applications with reviews and ratings. This will include a method for paying for Web applications, likely Google Checkout but that wasn't specified. Games are where this really makes sense, Pichai says, demonstrating how you can preview the game right from the Chrome Web Store. It's built on Flash, and Google will support all technologies in the Web Store.

9:48 a.m.: (Josh Lowensohn) A Web version of Plants vs. Zombies? There goes my productivity.

9:50 a.m.: Another game is demonstrated: Lego Star Wars. It's a 3D game that is right up the alley of Google I/O attendees. The game uses Native Client to run directly in the browser, allowing for a pretty rich experience, he says.

9:50 a.m.: (Josh Lowensohn) The 3D graphics on this Star Wars game are pretty impressive. Using the Unity engine which can be found in many iPhone games.

9:51 a.m.: Content applications are next. How do you re-create a magazine experience on the Web? Pichai asks. Terry McDonell of Sports Illustrated is coming up on stage to demonstrate what his company has done.

9:52 a.m.: McDonell trots out the requisite jokes about the dying magazine industry, which seemed to only resonate with the press corps. The magazine business changing rapidly, he says, but Web technologies can be empowering for editors in allowing them to create entirely new experiences for their content. An SI promotional video rolls.

9:54 a.m.: SI has created a live HTML5 prototype for bringing a rich magazine to devices, McDonell says. The idea is to pull together the best of the web and the best of the magazine, he says, showing off SI's World Cup preview issue. SI has always been known for its photography, an easy win for digital display. SI's application will let you customize a home page with stories and photographs on topics that you like, and will also have live scores and news.

9:55 a.m.: The idea is also to draw readers into SI's more feature-like stories, which it can now enhance with video around the longer-form stories. It's a swipe-to-turn-pages application, remarkably similar to some of the iPad applications that have been demonstrated by content companies.

9:56 a.m.: (Josh Lowensohn) No word on cost for this yet. I'm more interested in that than the bookmarking features...

9:57 a.m.: The new technologies can show behind-the-scenes stuff that wouldn't normally make it into the article, such as the making of a photoshoot with aging NBA center Shaquille O'Neal. The application also has hooks into social media through a navigation wheel, with Google Buzz functionality built in. Of course, this is nothing without advertising, he says.

9:58 a.m.: McDonell is pitching the Google idea where advertising can actually be as interesting as content. This isn't a new idea, "but it would be new to actually deliver it," he says with a chuckle. Rich ads are important to content companies that want to charge premium prices for their ad inventory, as annoying as users may find them.

10:00 a.m.: Last year, McDonell traveled to Mountain View, and he realized he was at the beginning of a "storm of innovation" that was old news to Google but could allow quality journalism to "flourish" and provide a new business model to replace the old failing one. He references Field of Dreams: "If you build it, they will come," but adds that it has to be open, searchable, and social. "And if we build that, we can charge for it." McDonell exits.

10:01 a.m.: Pichai is back. "It's really possible to do this in the browser using HTML5." The Chrome Web Store will reach 70 million users, up from 30 million at last year's Google I/O. The Chrome Web Store will work on Chrome OS and Chrome, offer free and paid applications, and support over 40 languages.

10:02 a.m.: Pichai actually gives Microsoft credit for finally embracing HTML5 earlier this year, after dinging the company earlier in his presentation. Next is Lars Rasmussen, the creator of Google Wave, and we already have a pretty good idea of what he's going to discuss.

10:02 a.m.: (Josh Lowensohn) I wonder if this means we'll be getting an update on Android's Web marketplace (http://www.android.com/market) tomorrow. It doesn't even have a way to search!

10:04 a.m.: "We're going to open up Wave to everyone today," Lars says. Google is also making Google Wave part of Google Apps. "Wave really shines as a place to get work done," he says, not mentioning the fact that Wave has failed to find a following in any other sense than collaborative work situations.

10:05 a.m.: If you have a Google Apps domain, Wave can now be enabled for all users on that domain for free, Lars says. He urges people to try Wave again, saying it's a lot more stable and faster than it was a year ago during the developer preview portion of its development. You can get e-mail notifications, navigation is improved, and several other functions needed for serious workplace use.

10:07 a.m.: A new version of the robot API was released a few months ago for automatically creating Waves, and public Waves are now more visible. New today: robots don't have to be confined to Google App Engine, and new APIs are improving integration with mobile devices and Web services. New extensions are also available from companies like Salesforce.com.

10:07 a.m.: (Stephen Shankland) Google Wave is well and good, but I never did hand out 14 of my invitations--and I tried.

10:08 a.m.: Last year Novell had announced support for Wave Federation, and SAP is also jumping on board. That allows Novell and SAP to host their own waves for their customers. Google announced that it will open-source additional Wave code, including the open browser editor. And they will also start publishing the client-server protocol.

10:09 a.m.: (Josh Lowensohn) I'm @ 22 Stephen. Funny how Google keeps those things around. My Gmail account is up to 88.

10:09 a.m.: Lars is just on for a quick stop today, as he introduces David Glazer, Google's director of engineering. He's decked out in a San Jose Sharks jersey with the number 5, presumably for HTML5.

10:11 a.m.: Glazer's talking about using Web applications at work. Google is a famously Web application-addicted workplace, but few companies have duplicated its approach across their entire employee base. There are several problems at the moment: it takes too long to build applications, for one. Also, employees are so mobile now and have different preferences for the devices they use, rather than the old top-down IT approach. Additionally, applications lock you in: once you choose a certain type of application build, you're committed.

10:12 a.m.: Google's plunging into a demonstration of how businesses can create Web applications quickly and for multiple devices. He said it would be another 40 minutes, which better not be true.

10:14 a.m.: Enterprise Web (or cloud) computing has been a huge theme for Google this year. Glazer announces that Google and VMware have been working together, and invites Paul Maritz, president and CEO of VMware, to discuss that work.

10:15 a.m.: (Stephen Shankland) VMware blog post on partnership with Google App Engine: http://blogs.vmware.com/console/2010/05/google-and-vmwares-open-paas-strategy.html For background, Spring is a framework for Java applications, and App Engine has some support for Java.

10:15 a.m.: Maritz goes over what VMware has done to embrace cloud computing through virtualization, VMware's bread and butter. However, that's more about building "private clouds" within organizational walls, as opposed to public clouds. That works at the moment, but new applications are being built with different priorities in mind.

10:16 a.m.: Maritz calls clouds "the new hardware." That means the cloud needs a new operating system on which to write applications, and the new OS are extended frameworks that application developers have embraced, such as the SpringSource framework that VMware acquired last year. This is viewed as an answer to Java's complexity, he says.

10:18 a.m.: SpringSource is open source and VMware is committed to continuing that, Maritz says. Google and VMware have been talking about this for quite some time, marrying a VMware back end with a Google front end.

10:19 a.m.: The Spring framework will be integrated with Google Web toolkit, Maritz says. He departs, and Glazer returns.

10:21 a.m.: Glazer goes into further details about the partnership, moving into a demonstration of how the tools will work together. Ben Alex from VMware comes up to do that demo. Google Web Toolkit lets you build Java applications, but where do you get that Java source code in the first place? Google Wave was used to coordinate between the former SpringSource, VMware, and Google. They are demonstrating Roo, SpringSource's developer tool.

10:24 a.m.: This is pretty wonky developer-oriented stuff, showing how Roo is used to create raw code. They're building an expense report application, using Google Web Toolkit practices within the back-end code. The front-end work is much easier now, he says, because of the integration work: you can access GWT code right from the Roo tool.

10:26 a.m.: I'd be lying if I said I understood exactly what is going on at the moment. But the point seems to be that the integration between the SpringSource tools and Google Web Toolkit saves developers a lot of time creating Java applications. There are other places where the two companies have worked together to streamline the process.

10:29 a.m.: SpringSource is running through additional ways that the Google Web Toolkit integration can make for richer Web applications, with support for transitions. However, performance is a key issue with any Web application. The Speed Tracer Chrome extension can help developers see how fast their application is running, letting them identify pieces of code that are holding up the program.

10:30 a.m.: SpringSource also has a tool for determining whether or not the application performance holdup is on the server side, rather than the client side. So why not combine them? The new tool puts the data for timing for both client and server side in the same view, making it easier to see what's affecting the application performance in a single glance. That's called SpringInsight.

10:32 a.m.: Google must be running late: they've posted the full list of the things they "announced" during the morning keynote, even though they have yet to announce some of them, such as the Google App Engine for Business: http://googleblog.blogspot.com/2010/05/google-io-2010-day-1-more-powerful-web.html

10:33 a.m.: That list would imply we're not going to see Android 2.2 today, we're not going to see a Flash demo, and we're not going to see anything resembling Google TV.

10:36 a.m.: We're still hearing about the expense report application, which is running into problems as the Wi-Fi connections in the hall ground to a halt. (This live blog coming to you over Sprint's network. Never trust the Wi-Fi in a conference hall.)

10:40 a.m.: Glazer is finally back, as the battery life on my laptop hits the red zone. Should I fall, Josh Lowensohn will take my place. Glazer is now announcing GWT Widget Libraries for ensuring that THE SAME EXPENSE REPORT APPLICATION will run on multiple mobile devices. The same SpringSource guys are back out to demonstrate that part.

10:42 a.m.: An iPad sighting! The expense report application is running in the browser, showing how the same app on two very different computing devices looks exactly the same. Another view of the same application running on Android shows how the smaller screen size forces tradeoffs, but how you can still make a pretty rich application using this technology. Once again, the WI-Fi network slows the demo.

10:44 a.m.: The presenters attempt to demonstrate how an update on the Android device will show up on the iPad device as the application syncs on the back-end, but the spotty Wi-Fi is killing this demo. It's really too bad, people practice these presentations for weeks before coming on stage, but the Wi-Fi network is so overloaded that they're going to have to talk us through how the application functions. The idea is that two different application UIs can share the same back-end application server and keep each device user up to date.

10:44 a.m.: (Josh Lowensohn) Note: The new app directory isn't live yet, but you can bookmark it for later: https://chrome.google.com/webstore

10:47 a.m.: The application finally updates on the other screen after being activated on the first device, eliciting a lusty roar from the crowd. The iPad owner (the manager) denies the expense report request in real-time, giving the expense report submitter instant feedback that the dinner they purchased was a little too expensive. They try again with a smaller amount, and this time the network obliges them with a fast approval process.

10:47 a.m.: Josh saves the day with the HyperMac power supply!

10:48 a.m.: (Josh Lowensohn) Well, you would have been fine if this thing had finished on time Tom :)

10:49 a.m.: Glazer's back to talk about the next part of this endless presentation: making flexible applications. This is about running your Web application in the cloud, on a device, or elsewhere.

10:50 a.m.: Google seems to have realized how late they are running, cutting the "flexible deployment" part short to move right into the "app management" part. Kevin Gibbs from Google App Engine takes the stage to probably talk about what Google announced 20 minutes ago: Google App Engine for Business.

10:53 a.m.: App Engine had some problems with enterprise scaling, something Google figured out for itself as it tried to move its enterprise software development over to Google App Engine. Business customers need more support, reliability, management features, and predictable pricing from service providers. Gibbs formally announces Google App Engine for Business with five features: domain support, pro support, a formal SLA, SSL and SQL support, and "sensible pricing."

10:55 a.m.: Half a billion daily page views are currently moving through Google App Engine. The business version will support much of the same technology that the current version does.Gibbs says customers didn't like the current pricing model, so they've simplified it: apps cost $8 per user, up to a maximum of $1,000 per application per month. No catch, we're told.

10:58 a.m.: We're getting a look at the Google App Engine for Business management console. It resembles the current console, but there are new features that pop up when you go to create a new Web application. No DNS set-up is required, the application is automatically synced with your domain. Gibbs is demonstrating a Web application for a business called "The Surly Butcher."

11:01 a.m.: Gibbs is running through the various options available to application development managers. Security was improved with this release, assigning different privileges to different users depending need-to-know-or-use rules.

11:02 a.m.: Google App Engine for business won't be available for everybody right away. Google is publishing a road map at code.google.com that will give interested customers a better idea of when certain features will roll out.

11:03 a.m.: Three more slides, Glazer promises. No action.

11:05 a.m.: Glazer reviews the business-oriented part of the day's keynote, which appears to be finally winding to a halt. "We started this morning by talking about the power of open standards," he says, reminding attendees that Web applications built years ago didn't necessarily realize they were at the forefront of the future. Glazer urges developers to "stay with open standards."

11:06 a.m.: And, we're done. That's it from Google I/O day 1, some interesting features announced for business customers and Web developers, but judging by your comments, the big news is yet to come. Thanks for hanging out with us today, and be sure to come back tomorrow for what promises to be Android Day. Don't forget: it starts at 830am PT, and Josh, Shankland, and I will be here to bring you the news.

11:06 a.m.: Go force and embrace open standards, or something. Is there a bar in this keynote hall?

Editors' note: The initial, bare-bones version of this story was posted May 18 at 4:19 p.m. PDT.