>don't really have the same degree of profitability as a SaaS
They have a fair bit. Local models lets companies sell you a much more expensive bit of hardware. Once Apple gets their stuff together it could end up being a genius move to go all in on local after the others have repeated scandals of leaking user data.
Yes but it shifts all the value onto companies producing hardware and selling enterprise software to people who get locked into contracts. The market is significantly smaller # of companies and margins if they have to build value adds they won't charge for to move hardware.