Just some personal observations which are anectdotal, but neverthelss give a hint:
More than 2/3rd of the software companies our (web-related) company is collaborating with provide services which are not web related, they might use port 80/443 for webservices but not more.
Casual observation of people around me reveals that almost no-one uses web based software at work. Instead all these companies they work for have invested their budgets into small, medium or large desktop or mainframe packages.
At least 20 of the devices lying around the table I'm sitting at now are stuffed with embedded software. Somebody built these, someone else put a price tag on them.
While it might be equally difficult to develop your customers when selling noWeb (hey!... quick, register domain...) software, the contact with the customers is closer leading to high retention. Moreover it's easier to server them well because you have more methods than just A/B testing to reveal the impact of changes. On previous jobs writing desktop/server-client software I never had the idea that web-based software would fit the customer better.
At the same time I use a lot of web-based stuff without a monetizing strategy, meaning, they charge me nothing.
2ct.