To be fair, Free Software was never a business model. It was a licensing model that forced to cooperate even such users who have incentives to grab the code, amend it, and disseminate the closed-source altered version. Free Software is about freedom to know exactly what you are running, and to share it. This us the value it tries to capture.

Various business models can be built around it. A license that restricts closed-source cloud use, like AGPL, still preserves the openness at least. It can be combined with a dual commercial license.