Although the clock rates of CPUs aren't getting any faster - moore's law is still valid. The transistor count still doubles every two years. In few years we should expect CPUs with hundreds, if not thousands of processors and cores - for the same or even lower costs as comparable, today available hardware.
According to moore's law we should expect a tremendous computing power density in a small form factor (a 1U pizza box?). Having such power in place is it still viable to "oursource" your computing into 3rd party provider? In near future the management software of todays clouds could run on a single machine - your very private cloud.
One of the problems of such approach is the power consumption. The on-premise cloud installation is only interesting in case you are able to highly utilize your machine and provide (and pay) the necessary power....
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