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In many server applications your not CPU bound but rather IO bound. In those applications using the lowest power CPU makes sense. These are the applications ARM seems to be targeting first. Examples: $5 month static + php only website hosting market, front end load balancing, static file serving, etc.

The other possible target is embarrassingly parallel work loads where you really just want to cram as many cores into a given space as possible. Usually the limit of how many cores you can put in a rack is either power or cooling, not space.

Where you probably won't see ARM in the near term is on work loads that are highly single threaded and performance critical. I think this is exactly the type of situation your describing.



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