Madison Laird a fellow denizen of Twitterverse initiated an interesting conversation few days ago. He tweeted "I'm ranting about the drawbacks to SaaS. I love being a contrarian. Anyone want to brawl about it?" and I, like others, tweeted back saying yes SaaS has drawbacks, but its benefits to small and medium size business outweigh the drawabacks.
Madison did the appropriate thing and took the conversation to his new blog with the post titled Alternative Perspectives on SaaS. By the way Madison, I applaud you for doing so. It demonstrates your good social-media acumen and gives us more space (>140 characters) to share our thoughts.
I look forward to understanding your perspective better. I did post a comment, that I will repost here next and respond to your questions better.