I am about to begin development of a web app in New Zealand for a NZ market for which scalability is a key requirement. I am contemplating using Google Apps Engine which I have used in the past for smaller projects where latency was not a big issue, because half the apps are client side Java script.
However, the new project requires fast AJAX response times. The local web-app companies charge about $175/month (much more than in the US I would imagine) for a dedicated server.
Is there likely to be a significant difference between the latency for AJAX requests if I use Google Apps Engine (hosted in the US I presume??) vs the local hosting company who host here in New Zealand? If so how big?