I think the believe that service side storage will replace central SAN storage is really not valid. There will be room for server side SSD, central FC storage and central network based storage.
Server side storage (SSD) is the way to go when you need fast low latency storage but at least at present is not applicable when synchronous mirroring to disaster recover site is required or a legal requirement. When ever such replication is required with present technologies then speed of local SSD will be masked by the speed to write to the remote location.
Centralised storage be it SAN or NAS based have all the tools included for replication and backup and these are often forgotten restrictions in the equation with the present "need for speed" of storage requests.
For sure server side storage is eating into central SAN storage place in the market but the way the storage market is going is to make devices that can do both SAN and NAS seamlessly from a central location. Also the main storage suppliers are desperately trying to include the server side storage into their central storage units rather than the other way around.
Server side storage in my opinion is not likely to replace central storage silos in the immediate future although they will be merged with the SAN and NAS presentation of storage.