I don't see how open source and profitable are mutually exclusive. Cloud9 and others have open sourced their software while staying profitable.
I don't know about you, but I'd much rather pay someone x dollars per month than going through the hassle of setting up a server just for hosting an app.
I don't know about you, but I'd much rather pay someone x dollars per month than going through the hassle of setting up a server just for hosting an app.