appengine is a platform, how would open sourcing it help you? You have a spare datacenter? FWIW there is an opensource clone out there in the wild but you need a cloud infrastructure to run it and it's not up to date with the latest SDK.
Releasing it would allow others to run "appengines" so you could move from one provider to another as you can with "traditional" hosting. Appengine pretty much locks you in. I'm interested to see where OpenShift will lead though. https://openshift.redhat.com/
It really sounds like what you really are is the VP/Engineering (don't call yourself a VP until you have 40+ people in the company).
People on HN, many of whom have been conditioned to aspire to a "CTO" role, won't agree with me when I say this, but VP/Eng is probably the better of the two roles. Unlike CTO, the head of engineering actually controls stuff and routinely makes key decisions in the company.