Being able to just cut off access to the application means a customer has little choice.

For a competitor to pass them, they first have to catch up. To catch up, the customer needs to be able to extract the data from the application to give competition a chance. If they get closer to catching up, they tend to be bought out. Lot of speedbumps to discourage competition. Also, to get funding those competitors have to pretty much promise investors they will also do “as a service”.

For assets versus expense, I see a pendulum, largely based on how appreciation/depreciation pans out versus acquisition cost and loan interest rates, as well as uncertain start up versus steady business. I’m not sure software is giving enough choice in the matter the let that swing.