There's a problem with cloud software that might never be solved as far as software development is concerned: legacy support. If Microsoft made Visual Studio available only as an online service, then only the most recent version would be available at any given time. Given that corporate software projects tend not to update at the same speed as Visual Studio does, a lot of customers would find themselves having to update their software projects a lot more often than they otherwise would. This would mean more jobs for software developers, but at the expense of requiring much higher software budgets on the part of companies. The actual end result is much more likely to be lower-quality software tolerated for much longer, just because it's so expensive to maintain, patch and upgrade.
Mokalus of Borg
PS - I prefer my software installed rather than rented.
PPS - Maybe that's just my old-school way of thinking.