I am trying to decide between using aws and Google app engine for a few web service and application implementations. I know this seems like a minor detail among many larger differences, but it makes quite an impact on my decision. I am not able to find any details on how GAE handles authentication if you don't want to use Google authentication. As far as I can tell you'd be expected to set up and maintain your own user credential sets which is a lot of work and a lot of liability
There is at least one other built-in authentication option other than Google Accounts: OpenID. You have to do a bit more work, e.g. provide a servlet that does the external provider signin.
Sounds like comparing oranges and apples to me. AWS is mostly an infrastructure as a service (IaaS), which means that it provides you computing resources (servers) and you host your applications there, directly managing that resources (files, CPUs, packages, etc.) You stay responsible for security, scalability, stability, etc.
GAE is a platform as a service (PaaS), which means that you give them a packaged application (.WAR file, for example) and they run it. You don't know and don't control which servers are doing this job, how much CPU/RAM they have, etc. GAE is responsible for security, scalability, etc.
In both options you can authenticate users in different ways, including Google+ OAuth.