Virtualization: The Software is the Computer

Was doing background work today on topic of virtualization. The more I dig in, the more I see virtualization creating a future IT infrastructure environment that marginalizes computing hardware into bits of software…..essentially creating a “software is the computer” infrastructure. My question for you: considering your future IT investments, does the technology of virtualization pose a future revenue threat to vendors of microprocessors, servers, operating systems, middeware and applications? If so, why? If not, why not?