Vikas Tandon writes in the context of the discussion on the Google Phone:
To me this is a big indicator of a shift that has been predicted for a long time. Hardware will cease to become important as it becomes more and more commoditised. The network and, more importantly content will be the real selling point. For example in case of a phone, I’m sure the hardware for making and receiving calls/data is fairly standardised. The reason we are excited about the Google phone (or the iPhone) is we expect the User Interface and the Apps that will be packed in would be great.
Similarly, this development is also about convergence – availability of content, software, apps will be ubiquitous and on demand, anywhere, anytime. Note the speculation that the Google phone will NOT have any storage. All data and content, even apps will be served from the network.