This agreement unites Red Hat's network management, technical support, and application library with the on-demand scalability of the Amazon Elastic Compute Cloud, allowing customers to create robust, reliable systems which can easily respond to uneven or spikey usage patterns. There's even more info in the FAQ.
The product is now in private beta, with a public beta planned for later this year. The base price is $19 per month, with hourly charges of $0.21, $0.53, or $0.94 for Small, Large, and Extra Large EC2 instances, respectively. If you'd like to be part of the public beta you can sign up here.
We are excited to be working with the folks at Red Hat to bring even more options, power, and flexibility to our developer community.