1. A cache-based system management architecture, comprising: at least one virtual appliance repository storing one or more virtual appliances; at least one host computer; a network connecting said virtual appliance repository and said host computer; and a storage means having a cache optimized for holding virtual disks; and a fixed function virtual appliance transceiver (VAT) capable of: performing user authentication; requesting and receiving said virtual appliances; binding said virtual appliances to said host computer; obtaining user data relevant to said virtual appliances; running said virtual appliances on said host computer; transmitting altered virtual appliances back to said virtual appliance repository; and backing up altered or newly created user data over said network.