Did you try turning it off and back on again...Overall that article is completely in line with our experience.
It was about 3 years ago that our MD stood up at our annual user conference and scared the **** out of most of our customer base by saying we'd be moving to be cloud based. 3 years later and that vision has mostly come true - our software is much easier to deploy and maintain, and many of our customers are enjoying this benefit. We can monitor usage and scale the environment automatically to ensure it never goes slow, and metrics can show us what the popular features are and help guide our future development.
The implications for solution developers is almost overwhelmingly positive, as our example shows - you can build and scale solutions far more cost effectively than ever before. You no longer need to support 100's of different web servers all running your app on different customer networks for different organisations. You concentrate your efforts on the upgrade and support of one environment, and every customer benefits from this.
For company IT departments there is a potential to lose maintenance work - they no longer need to support a roomful of application servers. However there is still a need for administration - even google apps needs a domain admin to create and configure user accounts. Project work will become more prevalent as new solutions can be selected and deployed at an increased pace but it can be harder to get disparate systems to work together. Also sorry but user support is never going to go away (are you SURE its plugged in?).