The author assumes the demand for CPU cycles is elastic in the long term (i.e. as prices of cycles drop, people will continue to use more and more of them). Ge

The author assumes the demand for CPU cycles is elastic in the long term (i.e. as prices of cycles drop, people will continue to use more and more of them). General-purpose desktops and laptops today often don't come close to using all of the CPU horsepower available to them, and many server applications are limited by memory, network bandwidth, and storage. It seems conceivable to me that at some point, before reaching thermodynamic limits, CPU cycles will stop being scarce for many application spaces, and future computing investments will mainly be in networking, memory, storage and software.