I agree. But if we steel-man this,it could make sense for services that can be replaced by libraries. So simple services that could be replaced by a slim library on the user's machine.
I also think that the author (and other commenters in this thread) underestimate how much the move to SaaS is driven by what users want as opposed to what the providers want. I'm old enough the remember the pre-SaaS/pre-cloud days when everything was a library. And it was a nightmare. You have to run all of your own infrastructure and the pace of development in the products themselves was terrible. And of course it makes sense. Need to store some data? A SaaS provider can pick a storage layer that meets their needs and be done with. But of course a purveyor of enterprise software has to support every possible storage layer under the sun.