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Hardware Is Cheap, Programmers Are Expensive
Sportsqs points out a story at Coding Horror which begins:
"Given the rapid advance of Moore's Law, when does it make sense to throw hardware at a programming problem? As a general rule, I'd say almost always. Consider the average programmer salary here in the US. You probably have several of these programmer guys or gals on staff. I can't speak to how much your servers may cost, or how many of them you may need. Or, maybe you don't need any — perhaps all your code executes on your users' hardware, which is an entirely different scenario. Obviously, situations vary. But even the most rudimentary math will tell you that it'd take a massive hardware outlay to equal the yearly costs of even a modest five person programming team."
I think there will be more developers looking for work in the future, but I don't think the price is going to drop THAT much. I just think you'll be able to find qualified developers more easily.
As for the article, it makes a lot of sense when you're running in a controlled environment. It's really a no brainier in consulting work. Upgrading hardware or optimizing software will both meet the customers needs only the hardware upgrade is $2,000 and the software optimization costs $20,000.
Of course, if you're releasing software into the wild and it needs run on many different machines you better make sure it performs well especially if it's a retail product. So spend the extra money and make it really good.