The author seems to be saying that SAP and Oracle ERP will be dead because they were designed for the 20th century and won't suite the needs of businesses in the 21st century let along their readiness from a technical stand point to be SaaSed!
I tend to think that the SaaS model will give rise to new players in subscription based model like any other technology discontinuity in history. But whether SAP and Oracle will die because of that or not .. I think they will survive very well.
On the business side, I think SAP and Oracle will not like the SaaS model because people will pay annual subscription fee instead of buying the license outright .. this will mean a drop in revenues for these companies for a number of years until the subscription base deliver annual revenues similar to those who are buying outright now. So SAP and Oracle may be worried about SaaS but nevertheless they will participate and deliver good products on SaaS.
It is actually reasonable to assume that ERP as we know it, a software that you license and implement and maybe 12 month later you can limp into production is going to go away and be replaced with SaaS.
It is also reasonable to assume that some new players can come up during this industry discontinuity, new companies that develop clean code and nice user interfaces will emerge and may take the lead from SAP and Oracle .. granted this is not going to happen tomorrow but it can happen and similar things happened in the industry before.