This just sounds like individual employees/managers bypassing IT and just going straight for the nearest SaaS for the solution to their problems. I personally don't mind that at all ;)
The whole SaaS model followed by many startups now aims completely at putting this power into the hands of non-technical but savvy users.
The role of a CIO (and his org) is to manage information technology in a way that optimizes the value for the company. In the cases where these things are slam dunk fits, IT should be suggesting them, not stonewalling them. Failing to do this is just being bad at your job.
If people becoming more tech aware means that there's less of a role for people who are bad at their job, good digging riddance.
I have a hard time understanding which kind of IT person this article is referring to. Does it mean the kind of person who uses full blown J2EE for a simple data-driven Intranet app that will only ever have 5 users and spends weeks drawing UML diagrams/writing useless specs before writing code? I certainly hope that kind of person becomes obsolete.
The whole SaaS model followed by many startups now aims completely at putting this power into the hands of non-technical but savvy users.