Especially note this bit: "Freestart collisions, like the one presented here, do not directly imply a collision for SHA-1. However, this work is an important milestone towards an actual SHA-1 collision and it further shows how graphics cards can be used very efficiently for these kind of attacks." In other words: don't panic, but prepare for a future panic.
This is not that unexpected. We've long known that SHA-1 is broken, at least theoretically. All the major browsers are planning to stop accepting SHA-1 signatures by 2017. Microsoft is retiring it on that same schedule. What's news is that our previous estimates may be too conservative.