I think that the OSS alternative to this business model is a decentralized app. ...

I think that the OSS alternative to this business model is a decentralized app. The hardware sits on many different people's computers around the world instead of a giant center owned by a giant corporation.

For example, OrbitDB was discussed here only a couple days ago: https://news.ycombinator.com/item?id=22918467

Edit: IPFS and this DB give a decentralized storage solution. There might be a decentralized processing solution as well, that I'm not aware of.