Any thoughts on Treasury Workstations versus Cloud/SaaS based applications? Is the functionality gap closing? Are TWS on the way out?

Direct to your question, TWS are not on the way out. Cloud Computing offers great leverage, great customization, it is scalable, cost effective etc. That is the good news. The bad news is that it requires time and skilled staffing to utilize to its' greatest extent. Neither of those commodities are in great supply among Treasury departments

There are 3 basic steps in developing/implementing technical leveraged solutions to Treasury issues: 1) map existing processes and identify opportunities to re-engineer; 2) select the technical tool; 3) implement completely. Treasuries fail in steps 1 and 2. Most Treasuries do not need unique solutions, they just need re-engineered processes that take advantage of existing technology. A TWS is a series of solutions at a known cost whereas Cloud is the ultimate solution at an unknown cost.