Software as a service just makes sense. A fully integrated suite--rather than solutions from several partners--just makes sense. That's why players who are investing the time, money and energy required to build true comprehensive SaaS solutions are going to come out on top.
Not surprisingly, you can still see the SaaS pretenders out there. And unfortunately many analysts and media types are still fooled by software vendors who say they have a SaaS solution.
Source: Industry Week, http://industryweek.com