^ This.
I work for a company who pushes for server consolidation (which includes offsite usage), and even our most fanciful forecasts don't show the future that tomb18 sees in 5 years.
@tomb18:
Whether you have 2 datacenters or 5 datacenters doesn't make a difference. I'd bet that your 2 datacenters are virtualized, and thus run the same # of OS's that the old one did, just in a smaller footprint. Aside from basic toolmonkey stuff, that still requires the same number of admins.
As to servers all being moved to hosted services... we wish! We try to sell that, but it's not universally accepted, not by far. There are huge issues with adoption.
Now with that all said - will we eventually see things tightening up? Sure. The software industry has already gone through a lot of it. But honestly, it's so easy to start into IT at a much higher salary than a person generally deserves and we can definitely trim some fat. But as it stands, I will remain true to my assertion that now is a great time for someone to get into IT (excepting maybe programming, but really I know nothing about that area) provided they are willing to actually work at staying current and certified.
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