I agree that the cloud (or partial outsourcing because that is what it really is) can be a nice play for some companies for some applications. But I think the play is short term. And I think more attention needs to be paid to the support issue.
It's tough enough tracking down a bug in a vendor ERP application today when it's all in-house. It's going to be much harder on the cloud.
Maybe not today when the vendors are lining up to sell you their clouds. But in a year when they cut support to squeeze out another fraction of a point of margin. Or the year after when they move that support to a low cost country. Or the year after that when they cut support again.
Fun times ahead, indeed!