Smart of Amazon to create this new service. Their other simple storage solution was a bit difficult to take in with so many developers perfecting their skills for years with relational databases.
This could be the end of traditional hosting providers. This is the superstore of development services. Its like having a mall with all your needs. Why would you need to go to the small shop when you can just get it all from the big boys for cheaper and more convenient package.
The only way that this will fail is if these cloud computing providers lack in customer service. But at the end of the day, developers are self service individuals not needing hand holding or extra care.
I foresee a shift of power in the future and the commodity industry of web hosting and servers will be a thing of the past. It will shift to a battle of Walmarts and Targets online, where Amazon and Google being the name sake.