Earlier quoted context omitted.
There is a significant difference within different roles in I.T. As someone who's worked in the cost center side of the industry, I can relate with the author. It's a problem not limited to Oakland or San Jose. Helpdesk, Desktop Support, and related jobs are commonly temp to perm with horrible pay for the amount of stress.
Exactly, the role of the 'IT person' as the system administrator and keeper of updates on things like the Novell server, has given way to Google Apps and Microsoft's Office 365. Small businesses who could barely afford to pay someone before can now eliminate that role and still have email, shared files, back end inventory management and accounts management, and the occasional web developer contract to keep the web si…
Some of your other points were insightful, but this assertion contradicts my experience and intuition, and -- I believe -- labor market statistics.