They won’t need to take anyone to court. They just cut them off from support. I haven’t checked, but Salesforce CRM may even be a subscription model, which means Salesforce can just void those subscriptions, and the customer’s server stops functioning. At a minimum, badthink customers won’t be allowed to renew their licenses at true-up time, and all support would be cut off immediately.
I think you're correct ... SAAS ... software as a service ... runs in the "cloud" ... which is nothing more than someone else's computer ... and management falls for this crap ... over ... and over ... and over again ... suckers ...