Expanding a bit on the idea of a thin-client, IBM is releasing ”IBM Virtualized Host Client Infrastructure” along with VMWARE and Citrix. The function? It's almost a return to the mainframe era except now you have the capability for multiple operating systems on very fast equipment. A single blade PC could host over 20 desktop users with a variety of configurations. It is a logical way to reduce costs and increase flexibility, but as the article states, many people may not be warm to it.

”The big sell with these products has always been that they're easier to manage, quieter, cheaper and more secure than standard PCs. The big downside has always been that they're not Pcs.”
“VHCI” has gone into beta testing, and IBM will begin offering it early next year. With the rampant increase in hardware demands from your OS, it will be interesting to see how virtualized machines running in this style of environment will fare.