You've got it backwards. The fact that we now have cloud providers is a direct consequence of F/OSS and the software commoditization it brings. Cloud (running other people's software) and support are the only ways to make money in this market, so I'm expecting lots of fighting, cloud-specific forking, and license changes going forward. Cloud providers don't manage shit; they're just employing bottom-of-the-barrel staff to kindof keep things running, and put just enough development effort into their cloud offering to lock you in to their walled garden.
What's backwards? Who cares how we got cloud providers? They are responding to customer demand and we've had colos and datacenter players for decades doing similar things, just at a smaller scale.
Obviously the service is managed and that has value, regardless of the backend and your opinions on how they run it. Perhaps your issue is with all the customers who want and pay for this rather than providers meeting a need.
Yeah sorry reading my post just now I should've edited it, or not submitted in the first place. What I meant is that F/OSS has kindof created a situation where no commercial software development by ISVs is sustainable, and now F/OSS itself looses one of the last remaing avenues for monetarization eg. feedback into development and innovation.