Software as a Service or Software plus Service?

At the risk of contradicting myself, I think Ray Ozzie is onto something with the Software plus Service approach. 

One of the current issues with SaaS for desktop apps is the lack of support for disconnected users. I don’t think it’s any coincidence that Google apps doesn’t have a PowerPoint equivalent yet – how many times have you made last minute changes to your presentation on the plane

“Software plus services” seems to be a sensible choice for desktop applications at this point in time. However, I suspect this will change once we have broadband connections from our aisle seats.

<update> There’s an interesting announcement today from Corel, who seem to have already launched a hybrid software plus service application.