Open Core (https://en.wikipedia.org/wiki/Open-core_model) has existed for a while and has definitely proven itself to be viable, albeit for a limited number of folks.

IMO the key to doing it right is ensuring that your hosted solution actually provides value: either because its difficult to operate at scale, there are certain regulatory/compliance requirements that need to be met, because certain features are restricted to a hosted product or under an enterprise license, etc.

I've seen a decent number of people create a hosted version of their product, slap SAML/SSO behind an "enterprise" plan, and wonder why nobody their successful OSS product doesn't translate to meaningful hosted revenue.