This is just what I was discussing last year:

http://www.economist.com/business/displayStory.cfm?story_id=1338410

Delete the workers

Sep 19th 2002 | SAN FRANCISCO 
>From The Economist print edition

Sun's covert nerd-reduction programme

IF THE number of Elvis impersonators continues to grow at the current
rate, it will exceed the earth's human population around 2010, it is
said. The nerds in the typical firm's IT support department are
proliferating nearly as fast. According to IBM, growing complexity means
that the number of IT workers required globally to support a billion
people and millions of firms connected via the Internet�possible within
the next decade�may be over 200m, two-thirds of America's population.

But fear not. Help is at hand for anybody who fears that their office is
about to be swamped by Playstation addicts. It comes in the form of N1, a
new sort of �ber-operating system unveiled on September 19th by Sun
Microsystems, a computer maker. N1 will make it much easier to run
corporate data centres�thus eliminating much of the work now done by
armies of systems administrators. 

N1's key concept is �virtualisation��creating pools of resources such as
computing power and storage capacity that can be used as needed. This is
done by automating the work of systems administrators. Instead of having
to load and configure software manually, they tell N1 to set up a
computer system for them�which, assuming it actually works, takes hours
rather than weeks. What is more, N1 claims to be self-managing, meaning
that it can, say, allocate additional computing resources to a website
that faces a sudden surge in demand. Since this means that the many
different computer systems in a data centre can easily be re-configured,
N1 in effect turns them into one single big system.

To do this, Sun has re-used technology that is already part of its
high-end servers and storage systems. This required designing software
architecture that is compatible with many different sorts of operating
system. But the biggest challenge, says Yousef Khalidi, chief technology
officer for N1, was in packaging the technology. It will only be adopted
if the nerds who run corporate systems co-operate, which they might not
do if it creates too rapid change or even loses them their job. 

For this reason, the �virtualisation engine� that Sun will roll out soon
will not include features that would scare the more on-the-ball
nerds�say, software that automates the process of translating the concept
behind a new service, such as online banking, into a computer system.
This can wait until the basic system is entrenched.

It is not just Sun's nerds whose future is on the line. Its competitors
are working on similar plans. IBM hopes that its eLiza project, part of
Big Blue's autonomic computing initiative (see this article in the
Technology Quarterly) will make its huge IT-services arm more efficient.
HP intends to build enormous �utility data centres� containing more than
50,000 servers. Microsoft is yet to announce anything specific but has
plans for virtualisation software, which will most likely form part of
its Windows operating system.

Sun's established products look increasingly fragile thanks to the
creeping commoditisation of its high-end servers and their operating
system, Solaris. If N1 is as successful as Solaris, Sun might be able to
replicate its current business model on a higher level: just like
Solaris, N1 is based on open standards, but works best with pricey Sun
gear. If not, Sun may suffer the same fate that it has in store for all
those corporate nerds.

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