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The blobstore and images APIs are available only within the App Engine runtime environment. To run them inside compute engine you can:
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Run them inside Managed VMs (the GAE runtime environment on GCE)
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Run them on your own infrastructure or GCE using a GAE API emulator (such as AppScale)
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Use public APIs (such as Google Cloud Storage) instead
Some App Engine services (such as Datastore) now also expose public APIs that you can use from GCE.
Source:stackexchange.com