So, actually reading the paper. What it appears that they are doing is blowing up the concept of a 'server' entirely, and replacing the system bus with network. So you can have a bunch of 'servers' racked together which create a pool of cpus, ram, storage, and so on, all of which are connected by the network. And then they pull from this pool of resources to create vNodes which are like virtual machines.

I like the idea. It'll be interesting to see it develop. It could be the core of the next ec2, or I guess it could be nothing.