Right in a way. Even cloud based systems rely on servers. Verb's software and inrastructure is cloud based and doesnt rely on local hard drives, downloads, etc., but that data is stored somewhere.
I believe the "upgrading of server" talk has more to do with Verb vamping up what their SAAS Verb Live offering can do. For example, being able to handle much larger audiences then just say 100 people. I think it has already been stated they had some of their mlm customers ask for more than originally anticiapted in regards to this. That would require beefing up the infrastructure and being able to handle that kind of traffic and data to their system.
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