I couldn't agree more...

'just because it’s SaaS doesn’t make it good’ comments on TheRegister http://www.theregister.co.uk/2008/02/07/freeformdynamics_saas_reality_check/

My comments....

Although when we started Cobweb's Hosted Exchange service in 2002 it was in search of a recognisable product, with a brand and features that most potential customers would understand. We wanted to be directly compared with an on premise solution and compete on our value as managed service providers. Its my view that by being in the 'cloud' will one day give us a wider, richer more useful service versus a traditional on premise solution. Today this is still only partially realised, Exchange as a hosted service, has still a long way to go, with significant advances over the next couple of years.

If its in the cloud or not should not matter, its the value we bring to business function and flexibility that SaaS, and its suppliers should be judged on.