This is a bit disingenious. When your core product is a hosted service, its a lot easier to be open source. There's a lot more into using your product than just compiling it.
Take a standalone product like Camtasia. It works really well and its worth the money to buy it. But if it was FOSS and I could just donwload the sources, build and it use it, and only had to pay for support -- well I probably would never buy it. I've never needed support with it. It's so easy to use, I've never had a need for support (in fact, that's partially why I'm willing to pay for it!).
Figure out what your business model is first. And then do what makes sense. Open sourcing often does, but not always.
Take a standalone product like Camtasia. It works really well and its worth the money to buy it. But if it was FOSS and I could just donwload the sources, build and it use it, and only had to pay for support -- well I probably would never buy it. I've never needed support with it. It's so easy to use, I've never had a need for support (in fact, that's partially why I'm willing to pay for it!).
Figure out what your business model is first. And then do what makes sense. Open sourcing often does, but not always.