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Hosting open source software has been a popular business model since day one.

My organization uses open source precisely because we can choose between competing providers.

Exactly - I once used a more full stack provider, and we checked to make sure their stack was open source for key areas we spent time on, so if we wanted to switch to another HOSTED provider, all our config files, etc etc would still work - but the other providers also HOSTED this software - that wasn't considered a violation by anyone. This was before the days of the mega providers like AWS - where now I think you just have to accept lock-in - but AWS has never raised rates so it's not as scary as doing an oracle lock-in as an example.

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