I don't think SAAS aligns the incentives the way the author claims it does. The biggest effect is to incentivize lock-in to an even greater extent than today. A

I don't think SAAS aligns the incentives the way the author claims it does. The biggest effect is to incentivize lock-in to an even greater extent than today. After all, if you can't switch then the money is guaranteed to keep pouring in. Under the old model, if you didn't like Vista then you could stick with XP or wait for 7. Microsoft had definite incentives to make sure they were making improvements that were valuable to people. Under SAAS, you don't like Vista? Sucks to be you, because it's already installed - and thanks for the cash! Finally this model doesn't account for those that can't do updates for one reason or another. Many of the first systems hit were medical systems that can't even do critical upgrades without going through a full requalification. It's possible that Windows should never have been considered for those systems in the first place, but the pressures of the marketplace almost guarantee that it happens.