[2]Two years before Grosch's statement, Seymour Cray was quoted in Business Week (August 1963) expressing this very same thought: Computers should obey a square law — when the price doubles, you should get at least four times as much speed.
In a separate study, Knight found that Grosch's law did not apply to computers between 1963-1967[6] (also confirmed by the aforementioned modern analysis[5]).
Paul Strassmann asserted in 1997, that "it was never clear whether Grosch's Law was a reflection of how IBM priced its computers or whether it related to actual costs.
The IBM sales force used Grosch's rationale to persuade organizations to acquire more computing capacity than they needed.
Grosch's Law also became the justification for offering time-sharing services from big data centers as a substitute for distributed computing.