Do ELNs in the cloud have a silver lining?

I posted an item on the growing number of offerings of software-as a-service (SaaS) ELNs a few weeks ago.  With a number of vendors looking to take advantage of this method of delivery, the underlying question is whether this represents a genuine benefit to customers, or whether it is a fashionable trend.  The appeal of SaaS is probably to smaller companies that may not have the infrastructure or the in-house resources to support a more traditional, fully functional client-server ELN.    It was interesting, therefore, to come across this Gartner report that indicates that many users are underwhelmed by their experiences of SaaS.  Are you running an SaaS ELN, and if so, does this reflect your experience?