Thoughts On Application Service Providing?

Bill Davis asks: "Many of the big software companies seem to be talking about moving to a software/Web service based model. In some cases, I understand where this could be an advantage to certain businesses. But in other cases, I think it will be a flop. Am I alone in this kind of thinking? What does everyone else think? What are other issues that might concern individuals and businesses in regards to hosted applications?" While I would dislike such a trend immensely, I don't think such a thing would completely flop. With Microsoft looking to do something similar to this, a good portion of the industry will be watching them preparing to follow. While there are certain circumstances where this can be a good thing, I am a firm believer that most applications on a home desktop belong on the local hard drive. What are your thoughts on the subject?

"In the biz.comp.accounting newsgroup a few days ago, I noticed someone talking about a client wanting to revert to an earlier version of an accounting software (Quickbooks Pro I think, but not 100% sure) because a certain module (payroll?) was only accessible by using the Quickbooks Web site. In other words, your payroll data was stored at the Quickbooks site. I guess a lot of people don't like the thought of this. I also understand that you could have the data local and the software remote, if the software was designed with that in mind.

My point is, I have never understood the complete craze with which software companies and a lot of media seem to think that the software services will be the only way to get software in the future. I for one want my software and my data on my desktop machine or my own server. I might use a Web service for certain things (like when I am traveling, etc...). I think that for the most part it is just a way that the software companies think they can make more money and avoid piracy. The 'ultimate' copy protection.

I also think that it may be something that many computer users do not want. If this is true, it could be a chance for open source software to make some inroads in places that before they have been locked out of. A very large percentage of people use Office right now, but would it be easier to get them to think of switching if they suddenly had to pay for it monthly?"

I see such ideas like this as yet another step in the further removal of the user from control of her own system. Of course, you do know that you don't really own your existing applications anyway.