This is a lot more like Android, where the code itself is open but the core services which make it useful are hosted and not open.
This looks like they're going to allow people to view the source code, but not actually use it. My impression is that it would be similar to Assembla's not-really-open-source license [1]
[1] https://www.assembla.com/wiki/show/breakoutdocs/Singleton_De...