Take smart grids, which have gotten a lot of airplay recently (not to mention US$11 billion in stimulus funding). Essentially, smart grids are power distribution networks that use built-in monitoring and distributed control systems to more efficiently and reliably deliver energy.

Another example is sensor networks. Getting real-world feedback from the environment -- whether it's weather data transmitted directly from the air and ocean, or traffic data from the streets -- lets us use the virtual world to better interact with the real one. We can more accurately predict the course of a hurricane, or take an alternate route home from work to avoid congestion.

Telemedicine's yet another example -- the ability for physicians to use network-enabled robots to conduct surgery from thousands of miles away.

Closer to home, there's the notion of facilities instrumentation -- using the data center to control and manage all aspects of facilities, from security to energy efficiency.

Consider this scenario: An employee decides to come to work in the middle of the night to work on a promising new idea. As she drives up to the corporate office gate, it detects an authorized entrant and swings open. Streetlights in the parking lot light up in sequence, illuminating a pathway to the building. Meanwhile, in the employee's office, the PC is booting up and the virtualized desktop image is loaded. The coffee machine begins to perk. By the time the employee arrives in her office, everything's humming away and ready to go.