Check out this great article from the Software Advice team: http://blog.softwareadvice.com/articles/enterprise/the-cloud-and-why-installed-software-isnt-going-away-1013112/ . It is a good summary of the forces keeping installed software around as cloud computing continues to emerge. I too believe installed software will stick around. In many instances it is a better fit for enterprises. I have worked with EscrowTech over 13 years and witnessed the emergence of cloud computing. In the cloud environment the vendor is exposed to additional inherent financial and business risks than with traditional “installed” Software.
One example – The SaaS user no longer obtains “ownership” or access to their unique customer data. In traditional software this customer database resides on the user’s computer not in the cloud on the SaaS vendor’s servers. Recently I received a call from a SaaS user who had been using a CRM SaaS solution for the past five years. The SaaS user decided it was time to move to a more robust software solution from a different software vendor. According to the SaaS user the current SaaS vendor held their customer data “hostage.” Because the SaaS user no longer agreed to pay the SaaS vendor, the SaaS vendor was unwilling to release their customer data to them. The SaaS user was forced to either stick with an unsuitable SaaS solution or move to a new solution and lose access to their customer data. The SaaS user ended up suffering the loss of losing customer data and migrated to a new SaaS solution. We set up a SaaS escrow with the new SaaS vendor to protect the SaaS user from experiencing this same situation again. https://escrowtech.com/saas_escrow.php