The majority of software has always been a ‘thing.’ We are typically sold a new operating system every few years with the promise of better upgrades, etc. But now software could be turning into a rental, rather than a purchase - turning transactions into relationships. What changes can we expect from a software-as-a-service other than a new monthly bill?
Corporations are moving to a "rental" SaaS model to have a better revenue stream model. And if you get someone to pay $30/mo for Adobe Creative Suite - Adobe earns $360/yr for probably 2 years. for a net of $720
whereas if you were asked to pony up $720 for the creative suite every 3 years, you would be less likely to do so.
The other reason that companies are going towards SaaS is that with the proliferation of apps in the app store as well as the divergence of mobile platforms, it is a lot easier to build the "brains" of the app into a SaaS solution and just stick a mobile front end onto it that works across most platforms.
Running it as a SaaS solution also enables more of what Mr Privaman brings up. Namely the ability to use ML to correlate other data sets to improve the behavior of the app as it appears at the mobile end.
That does not mean all apps will go away. there are apps and tools that do need to run in "disconnected mode" but they are getting rarer.
Lastly SaaS also has the promise of "preserving state". all those clever "toss the data from your mobile device to the screen" etc are all predicated on some level of SaaS to retain the state you were operating in and translate it / reformat it for the new display. As we move towards an ever more ubiquitous computing environment SaaS as an infrastructure becomes critical