For any developer with limited resources, this means a library (where viable) can provide the same functionality to the user, at a lower cost to the developer than a service.
By library, I mean any software that can be run by the user: shared objects, modules, servers, command line utilities, and others. By service, I mean any software which the user can't run on their own; anything which depends (usually through an API) on a service provider for its functionality.
Usually, the centralization of these administration costs is cited as a benefit of services. People say, "services are easy to write because you can upgrade them centrally, so you can avoid slow-to-upgrade users making everyone's lives worse."
But this assumes that slow-to-upgrade users can have negative effects on everyone else. If one user can't have a negative impact on other users, then you don't care if some users are slow to upgrade; they're only hurting themselves.
You can prevent users from negatively impacting other users by not sharing state or resources between users; in other words, let users run the software themselves, by writing libraries instead of services.
"Write a library", in this sense, can still mean writing a standalone server reached through a network protocol. As long as the user runs the server themselves, you're still saving the administration costs. Both standalone servers and importable code are equally expressive, and equally cheap for you to administrate if you're not operating a service yourself.
By avoiding the maintenance and upgrade costs of a service, a library can afford to contain more functionality. That's good for both the developer and the user.