Today we had Hal Stern and Jim Baty present at our DataCenter Ambassador Conference, and I finally got an answer, why Moore’s Law does not need to lead to lower revenue.

My perception during the last years was, that CPUs got faster faster then the need of the software demanded. That led to deminishing revenues, because no-one needed big boxes any more.

But with the advent of all those Web 2.0 services, there again is the need for a.) higher network connections (downloading or uploading of Music, Video and/or pictures) as well as b.) extreme CPU power to handle the services based on top of these elements (for example PhotoShop as a service, send in the picture, describe what you want to have removed (red eye effect) and have some service provider resolve that for you). These services, if successful, do then need way more power in the systems, then are available today in available systems.

As always, there was way more in their presentations, but, that’s why we still invest in research on how to help all these service providers.