That's kind of presumptuous though. I know they want people to live in the cloud to create residual income, but sometimes it makes sense to have a local database solution. I'm not against the cloud or central databases but it's not a one size fits all world.
Who said the database needs to be "in the cloud"? It just shouldn't be on the same machine as your users.
I don't ask my users to install Visual Studio, IIS or Windows Server 2012 on their boxes. I kind of think asking them to install SQL Server is similarly foolish - particularly since now you have to pay for 1 SQL server licence per user rather than 1 per organisation.