I have been following the concepts of 'cloud computing'/'software as a service' with some interest. I find the concept intriguing, and it may well play a role in my future business plans. So, I wanted to pick your brains about the benefits and/or problems of such services.

Benefits:
  1. The revenue can be based on subscription fees rather than one-time purchases.
  2. This eliminates the problem of piracy, since the core of the system remains under the companies' control and not the end users.

Problems
  1. There is the continuous problem of connectivity loss on both the service and user ends.
  2. There are many who do not like the idea of a third-party having control of their data.

What are some other benefits or problems you guys can see?