I've been trying to have someone explain this to me for about 2 years now, and this is a little clearer.
He describes it as bringing the edge of the network to where you are. Connecting everything - no doors, barriers walls. The revoltion is integration. Not wildly compelling for consumers - weaving together necessary information. The important question is who controls and owns data and authorises its use. (I thought that might be coming).
He said P&G within 12 months will be putting RFID's on every product so they can track inventory. Less than a penny per chip.
His user examples were the usal weirdness about intelligent agents knowing who was allowed to interrupt you in a meeting depending on who was with you in the meeting becasu they knwo your calendar.
These strange corporate control models are imbued through .NET - maybe thats why I don't get it; I'm already on the edge of the network blogging in the back, with interruptions under my control via iChat, and calenders shared with others here via the net. I don't want to spend time setting policies for it or having them derived from an org chart.
Another take from Denise