What I do see happening is Microsoft doing what they usually do: figure out a way how to become the standard platform for smaller software companies writing niche software for businesses. There are an awful lot of businesses out there who have essentially infinite technology needs and very little capacity to absorb it. Previously, Microsoft said "Here's a windows computer. Run this installer which cost you $50 from some company using our products. Bam, you now have a need filled without learning how to program yourself."
In the future, I expect it sounds like "Hey, you've already got a computer. Cool. Click once and pay our vendor $50, and BAM we'll give you a website with X business software installed on it. You don't have to learn anything about programming or system administration."
Now personally, having done downloadable software and web apps, I would prefer to have users pay me directly for access to my web app rather than having them host a copy locally. However, that won't fly for all businesses, and if Microsoft totally took all the technology pain out of it for them and reduced barriers to purchase by getting payments totally right, well heck, I'd be happy to sell hosted apps.
(Particularly hosted apps which you have to pay for every month or MS will turn off your access for me.)
No idea how much Azure & Co will cost, though.
Not even when they first announced it at PDC2008 a year ago?
Now more information is coming out in an accessible way about what Azure actually is, no hat alignment necessary.