Now you can get JBoss on EC2 cloud computing is clearly trying to ditch the sexy image and move into the old dull world of profitable IT. Having an OS on a cloud wasn't a big deal as after all its not the OS that people are after its the apps. This however will be interesting particularly if Red Hat make the investment to develop effective dynamic clustering and scaling (up and down) approaches which can take advantage of a cloud environment.
With Google playing with Python and Salesforce wanting you to use their own proprietary dev environment it appears that Amazon are most clearly going for the traditional data centre. With Google (as it is now) and Salesforce you have to make a decision that the cloud is the thing and then develop for that given cloud environment. With this move Amazon & JBoss have basically announced a strategy where you can take your existing applications and move them into a cloud environment.
The operating system play was mildly interesting but saying to a CIO "move your Linux OS onto a could" is a sort of pointless play, saying "shift your Java App onto the cloud" make much more sense and critically doesn't sound as scary. After all you deploy the app remotely anyway so why not just deploy to a cloud.
This won't be for everyone but it does mean that cloud computing now has a data centre offer that will make it very interesting for people in the SMB hosting market.