Room better for productivity than cubicles?
I can't quantify it, but having a room instead of a cubicle will help in a peaceful work environment. I for one would have light music playing in the room while I work! :-)

Anyways, I had said at the end of the post of "Web Services maturity at IBM > Microsoft > Sun > HP." the following:

"On a lighter note, while I interviewed for Microsoft and since I've been in IBM as well I noticed one common thing. They did not have cubicles (or cubes), but rooms with doors for each employee (and this pattern repeated consistently in several buildings). Sun, Oracle, and Cisco have cubicles. So here's a theory/report, the companies that don't have cubicles are going to be ahead in Web Services arena ... :^)"

Here's some proof I must have been more right than humorous: ;-)

David Letterman's Top 10 Drawbacks to Working in a Cubicle

10. Being told to "think outside the box" when you're in a freakin' box all day long.
09. Not being able to check e-mail attachments without turning around to see who's behind you.
08. Cubicle walls do not offer much protection from any kind of gun fire.
07. That nagging feeling that if you press the right button, you'll get a piece of cheese.
06. Lack of roof rafters for the noose.
05. The walls are too close together for the hammock to work right.
04. 23 power cords - 1 outlet.
03. Prison cells are not only bigger, they also have beds.
02. The carpet has been there since 1976 and shows more signs of life than your coworkers.

And the number 1 drawback to working in a cubicle is...
01. You can't walk out and slam the door when you quit.

Even if we account such that building depreciates in accounting (instead of appreciating in reality), I think giving your employees rooms gives them lesser noise, more privacy, more luxury, more self-confidence and more creativity. Remind this to me again when we are in an uptime! ;-)

- Kaleem Aziz.