My worry is learning and innovation. When companies sold physical devices, other companies could learn from them and improve them. We invented patents to provide economic support for innovation.
But, with services, nothing is exposed. Every innovation can be a trade secret. That makes it harder to learn and harder for cross pollination of ideas.
It probably won’t be good for employees either. Another company won’t bid for your skills as high, since you will take a longer time to train to work on their system.