This means you are wearing business trousers, shirts (often ties, though option without), dress shoes and whatever your wardrobe includes (waist coat?), crawling around on the floor.
Personally, I think this is a little overkill, I can completely understand having this dress code when you are out and about representing the company to customers etc. But when you're sitting here behind a screen all day, or under a desk patching, installing or removing gear, what would you consider reasonable dress ware?
Do you feel that is should be a universal policy like we have now? or split it out based on your external interaction?
What is considered business casual to you? (acceptable)
I am not saying get rid of the dress code all together, there are reasons to have them, all of which are valid. But in my opinion it needs to be proportionate to the job you are in, not something that can be smacked on universally.
EDIT: Just to make clear, this doesn't just apply to IT, this also applies to CSR's who are sitting on the phone all day too!