After successfully completing the Grasshopper project, SpaceX has still some high altitude re-entry testing to do. For this they prepped a Falcon-9R first stage with legs and all for testing on the SpaceX test sight in New Mexico.
This is the first static fire test of the first stage F9R test vehicle.
This will give SpaceX the chance to fully test high altitude assent and descent procedures, before they really start landing there first production Falcon-9R fist stage, on solid ground.
Succeeding in just recovering the first stage and being able to re-use it for future launches, will decimate the cost of spaceflight, making launches much more affordable.
When they succeed it will be a first and bring regular fights back and forward to Mars one step closer.