I work for a company that has taken all of this directly to heart.  Right now, at least 80% of my daily work is done through cloud computing,  and the goal is to pass 95% in the next couple of years.  I'm not doing anything particularly out of the ordinary either.  The vast majority of what I do every day would be familiar to anybody who has ever worked in a sales office, or really any office job for that matter.  We conduct the bulk of our business through google partners, and what can't be done with that is easily and cheaply covered by a third party cloud computing company.  My entire setup, hardware and yearly licenses included, costs less than 1 or 2 months of pay for your average american IT employee.   

We have a physical office, but it really serves no purpose other than having a place to have meetings a few times year and to impress clients.  In the next year, I will essentially be able to do everything my job requires with nothing more than a notebook computer, i-phone (or any smart phone for that matter), and a memory stick, anywhere in the world that has decent internet access.

I don't think many people have thought through the implications of what these two things, extreme affordability and mobility, mean when combined.  The potential for small business' and small scale entrepreneurs will be almost unheard of.  It may even dwarf the internet boom of the late 90's (It will certainly be more sustainable).  If this goes the way that Fred is talking about, it could be the anti-tech bubble, where small scale local business' reap the lion's share of the benefits of the new technology, not venture capitalists and financiers.  This will probably also have huge implications on charity and foreign aid, making things like micro loans and fair trade partnerships much more applicable to the technology sector.  This is some pretty heady stuff.