Emerging scale-out workloads need extensive amounts of computational resources. However, datacenters using modern server hardware face physical constraints in space and power, limiting further expansion and requiring improvements in the computational density per server and in the per-operation energy. Continuing to improve the computational resources of the cloud while staying within physical constraints mandates optimizing server efficiency. In this work, we demonstrate that modern server processors are highly inefficient for running cloud workloads. To address this problem, we investigate the microarchitectural behavior of scale-out workloads and present opportunities to enable specialized processor designs that closely match the needs of the cloud.