The problem is much more fundamental. Free Software is about users having the right to understand and modify the software that they use. This is my understanding of 'the printer story': https://www.fsf.org/blogs/community/201cthe-printer-story201.... With hosted solutions the software runs on the supplier servers - so if the user wants to modify it he has to resign from the hosted solution (or maybe negotiate a special case - this does not seem very realistic). This is a fundamental limitation. If the software is Open Source the user still can copy it, modify and run it on their own servers (or on some other cloud supplier who would agree to the change) - but it is a lot of hassle (and hassle is important - after all with enough work you can always decompile a binary so it is only the hassle that differentiates source code from binary). Maybe if there was enough competition between cloud providers - then this could work - but I think the economy is against it.