This whole article does feel like it was written in 2008, like the report it refers to. Many of the conservative boring corporations that used to have many underutilized servers in their data centers have been actively moving towards virtualization and cloud like solutions since then.
Most cloud hosts are memory bound as well on the hypervisor - this is a consequence of the applications being memory-bound. Low CPU utilization rates are not at all uncommon for cloud environments. Storage bottlenecks are also very common.
