Some information regarding the Azure pricing model has been released. Some good news is that the pricing is competitive to to Amazon's AWS service.
Windows Azure
Compute @ $0.12 / hour
Storage @ $0.15 / GB / month stored
Storage Transactions @ $0.01 / 10K
SQL Azure
Web Edition – Up to 1 GB relational database @ $9.99
Business Edition – Up to 10 GB relational database @ $99.99
.NET Services
Messages @ $0.15/100K message operations , including Service Bus messages and Access Control tokens
Bandwidth
All Services @ $0.10 in / $0.15 out per GB
Uptime availability is 99.95% and storage is 99.9%.
They will also offer more predictable pricing plans at PDC 09.
"While consumption based pricing provides great flexibility we have also heard it introduces a level of unpredictability and some customers prefer other options. At launch we will share details of subscription offers that provide payment predictability and price discounts that reflect levels of usage commitment."
I'm hoping for some sort of low-cost developer pricing!