If I loook on my notebook I find Windows Update, Google Update, EA update together with application integrated autoupdaters (Firefox, Thunderbird, Acrobat Reader, Skype) running. I'm sure there a others, I don't even know about.
If Microsoft had implemented auto update as an simple open operating system feature (which could be used by other software vendors), nobody would need a private update service running all time. Your application would just need to register an autoupdate URL during installation and all updates (OS, applications, drivers) could be handled by a single (hopefully secure) update mechanism. If were a standard OS feature, nobody will bother building proprietary updaters and MS could further reduce TCO by providing enterprise wide policy control (so that a company could enable a specific update or not).
Maybe an open source autoupdater is a first step into that direction (although it would require encouraging others to use a common autoupdate).
If I had only known, I would have been a locksmith. -- Albert Einstein