I just don't buy this. I cut my teeth as a HPC programmer working with C and writing no-lock algorithms. There will always be a need for that, but realistically the vast majority of software being developed is simply not performance-critical. It's designed to work at human speed. Advances in language, compiler, and runtime implementations will continue to keep up with any growth in the need for performant application…
Even if the software only needs to respond at a certain speed, scale will quickly make you either pay through the nose for better hardware or optimize the software so that it can respond in a small fraction of the original speed. The trick, as always, is finding balance between paying for hardware and paying developers.
People really bought into the ‘people are more expensive than hardware’ as an excuse to get screwed like this. For $5k in human cost, these guys (and their investors) now save 200k/year in hosting. And this is not an isolated story; I am working on another one at this very moment. Programmers have become so incredibly sloppy with the ‘autoscaling’ and ‘serverless’ cloud ‘revolution’.