One of the primary components of IT that is seeing a lot of investment is virtualization. In most cases, the term virtualization refers to server virtualization. At the Blue Socket seminar Jim was not discussing server virtualization, but wireless LAN virtualization. At first blush, the thought of a virtual wireless LAN seems a bit strange. One obvious question is "how do you virtualize an access point?" The quick answer is that you don't.
Part of the motivation for a virtual wireless LAN is the realization that wireless LANs are becoming an increasingly integral component of the network infrastructure. As such, wireless LANs need to be able to scale, both in terms of the amount of traffic that they can support and the services that they can enable. That is difficult, if not impossible, to do with a centralized architecture that requires that all traffic has to go to a centralized controller. The Blue Socket approach is to separate the data and the control plane in a fashion somewhat similar to the approach taken by the Cisco Nexus 1000V.
The data plane is distributed to the access points and the control plane is located in a centralized computer. For this approach to be successful, you have to be able to minimize the amount of traffic that flows over the LAN or the WAN to the centralized controller. The really interesting thing that Blue Socket does is that they virtualize the controller software and hence sell a virtual wireless LAN. Virtualizing the controller has a number of benefits, including reducing the acquisition cost and making it easier to add capacity as needed.