I think he means more like wordpress.com, WPEngine and those ilk. Those are currently the most lucrative, but there are other examples of businesses monetising open source by hosting it.
Saying that, it all falls under the general trend of providing system administration as a service. Given how much ongoing effort is required to maintain secure, up to date and efficient servers, this is probably a good thing.
> most small development shops would pay a monthly fee not to have to administer the apps themselves.
and
> But would an external dev team trust some big company like Amazon with with their intellectual property?
and
> So I predict that someone will come along and offer an innovation hosting service, and make a lot of money off it.
OP had his finger on the pulse of tech, though, that much is certain.