Microsoft's 3.0 CRM release will become a prominent driving force toward hosted CRM products for small businesses. Workers in small companies are already familiar with the Office interface.
So the vice president of sales or marketing will often become key to the decision to use hosted or in-house CRM. Usually, hosted is chosen when a very fast marketing solution is needed.
It will be kind of like getting a new car and having to decide on buying it or leasing it after you make the vehicle selection.