This is very competitive with the free Azure services Microsoft is offering to MSDN subscribers: http://msdn.microsoft.com/en-us/subscriptions/ee461076.aspx
Microsoft also offers a free promotion to all new subscribers (click "view details" link under "Buy Now" button): http://www.microsoft.com/windowsazure/offers/
From the site:
Included each month at no charge:
* 25hrs small compute instance
* 500MB storage
* 10,000 storage transactions
* SQL Azure 1GB Web Edition database (3months only)
Any monthly usage in excess of the above amounts will be charged at the standard rates. This introductory special will end on March 31, 2011 and all usage will then be charged at the standard rates.
Either way, it's a pretty big platform to be locked into. Kinda like saying your new laptop locks you into a closed platform.
Is it as easy to move from Azure to a co-located windows box as it is to move from ec2 to a co-located Linux box? (e.g. install the image on the new box and replace the kernel?)
* = after spending a minimum of $5,469 on a subscription