This was never supposed to happen. Amazon Web Services is the Titanic of cloud hosting, designed with backups to the backups' backups that prevent hosted websites and applications from failing.

The distributed, open-source SaaS model will expand the range of available software

Right now if you think about the way software-as-a-service is delivered, Salesforce.com, NetSuite and Google are the most commonly cited examples. All these companies deliver their software using what is known as the multi-tenant model. Just as multi-tenant software knocked on-premise vendors for a loop, new distributed, open-source models for delivery of SaaS software will have a powerful impact.