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Software as a service

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Is software as a service a good thing?  Trying to weigh the options with keeping servers and software premise based or farming it out to a company and pay by the seat.  It seems like this is where everything is moving.  We have some of our services already in the cloud so it is not a hard idea for our employees to grasp.  The world is becoming more mobile and teleworking looks like the next big thing so it makes sense to have the equipment located at a large data center with the redundancy and uptime guarenteed.  The only downside that I see is that it ties you to a vendor and demands a long term committment so you have to be sure that the vendor is going to be able to support your needs and that you have a good working relationship with them.  They become part of your company so you don’t want to have a mega corporation that has a call center somewhere and does not understand your company or needs.
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