In a PC World article, evidence is pointing to medium businesses choosing hosted office suites over buying MS Office licenses for desktops.
Like Adison & Partners, thousands of organizations, large and small, are researching and implementing hosted office suites as alternatives to pricier, traditional options, like Microsoft Office, designed to live in PC hard drives.
Cisco's Webex's WebOffice, Zimbra, ZOHO, Salesforce.com, OpenOffice, AppExchange, and many more. So many choices for hosted apps or SAAS.
And let's not forget Google Apps, which just signed a distro deal with Capgemini, an IT consulting firm. [techdirt]
Security concerns. Backup/integrity issues. Lack of ubiquious access. These are all reasons to look at SAAS / Hosted Apps - as well as reasons to stick with in-house apps.