The dangers of hosting

My new venture, Autoriginate, Inc, is exploring various product directions and distribution models. One of them is a hosted product. While I think that generally hosting is a great way to go, this article about Saleforce.com’s recent problems does give me something to think about.

When you have a shipping product, customers that don’t push it as hard won’t see performance problems. When you have a hosted product, everyone sees them.

Anyone else have thoughts on the hosted model?