Looking further out, Menon also believes a new type of memory called phase-change memory could replace existing DRAM and revolutionize the way servers are built. PCM uses a glass-like material that can change from multiple states to crystalline forms as atoms are rearranged.

"It's cheap enough almost to be like disk, it's fast enough to be almost like memory," Menon said.

As the price of PCM falls, users will be able to get five to 10 times as much memory in servers compared to today's DRAM, Menon said. It will also be nonvolatile, which means data won't go away if the power to a server fails.

With PCM, "you can design your file systems differently, you can design your databases differently, and it has the potential to reduce by three orders of magnitude the power consumed and the amount of space consumed by servers," Menon said.

Menon said IBM continues to develop PCM and will incorporate it in servers, but he didn't provide a specific date. Companies like Samsung and Numonyx are also focused on PCM.