> soon it will not make sense to pay for many things hosted
the opposite is where we started in the first place. As applications grew in complexity the SaaS model became more popular. The advancement of the internet connection made it possible.
SaaS model boils down to 2 big advantages that are hard to beat by on-prem:
1. Instant upgrades
2. No maintenance effort and infrastructure costs
That's definite for B2B but even for more busy B2C's the above 2 are a life savers. SaaS model allows you to focus on your core bussiness rather than running "OS on-prem shop".
SaaS model also stimulates competitiveness, imagine SaaS model doesn't exist at all. What would happen is we would end up in a world of homogenous, mundane and primitive software. When you build a company you do a one-time purchase of "the office suite" consisting of document editor, project management tool and maybe a communicator, etc.