From something we wrote a while ago...
Broadband networks allow both data and application to travel between users. If all members on a network, that is, all computers and computing devices on the network, are constructed from a common computing module then we have a totally pervasive solution - everyone can get everything, everywhere. A common computing module with a consistent structure and the same instruction set architecture (ISA) was the objective of the CELL technology. The idea was that the members of the network, e.g., clients, servers, PCs, mobile computers, game machines, PDAs, set top boxes, appliances, digital televisions and other devices, would use the same core computer processor logic to insure compatibility. The consistent modular structure would enable efficient, high speed processing of applications and data by the network's members and the rapid transmission of applications and data over the network.
All this suggests a new programming model for transmitting data and applications over a network and for processing data and applications among the network's members (vs. data just being transferred between stand alone devices that must run the same application software to process and display the data sent). This was the original CELL programming model. It was to be a software CELL that was transmitted over the network for processing by any network member (some to a higher degree and some to a lesser degree). Each software CELL was to have the same structure and contain both applications and data. The "old" stuff would still work, but it needed to be compiled in a new way. What is created is a dynamic not unlike the advent of the fax machine -- to send or receive a fax you had to have one (and if you don't too bad!). This means the code for the applications *must* be based upon the same common ISA. All computing resources on such a network would have to have the same basic structure and employ the same ISA so any particular resource performing the processing can be located anywhere on the network and dynamically assigned to the activity required.
All that to say that while the processor itself may be discontinued, the underlying idea of the CELL technology will probably be reincarnated through the Common Platform Alliance:
http://www.commonplatform.com/
At the end of the day, people will reach whatever "cloud" they want through a device. IBM will have to go back into the microelectronics market again one day...
R&B :)