My somewhat circuitous point is that the ability of a server to perform work is bound by something that runs out - CPU (no more CPU time available), disk I/O (c

My somewhat circuitous point is that the ability of a server to perform work is bound by something that runs out - CPU (no more CPU time available), disk I/O (can't handle more I/O requests to disk), network I/O (can't put or get any more packets through your network card or some upstream device/pipe), and so forth. Colloquially, whatever runs out first is what you are bound by. You can either increase the resource (upgrading CPU, adding memory), or use the resource in a different way/trade off one resource against another. For example, compressing data before network or disk I/O might be useful if you have spare CPU. Once you've done that, you may now be bound by something else - maybe available memory. If you have spare resources (CPU, for example), you can then choose to use fewer/less powerful resources in that space if it makes economic sense. You can also talk about response time being bound by something - disk seek time, network latency, memory latency, and so forth. That affects how fast something can respond, and while that figures into how much work a server can do (per-thread/request memory usage), it doesn't generally largely affect how many machines you have to buy or their configuration (unless you have low-latency options).