The Intel Atom is described as an inflection point in the paper, since it and similar CPUs are powerful enough for devices accessing the cloud.
From the paper:
It no longer makes sense to think of hardware trends first when trying to understand where software is headed; at best, the opposite is needed. The bottom line: Software trends are now largely independent of hardware trends. If they do relate, it is in the opposite direction: the demands of software will drive hardware, and not vice-versa. ...Thanks.
Multicore will (likely) dominate in the server cloud but not on the devices used to access the cloud. Thus, how we use multicore chips in server clouds is the main issue we face. ...
Concurrency of unrelated tasks will naturally utilize the many cores of cloud servers; there will be no great need to parallelize all software in order for the cloud to be successful.