Yes, you may use the Open Source version to host. However, if you are building a business around SplendidCRM, then you will likely want the SQL source code.
Our Hosting License is more for your benefit than ours as will clearly state that there will not be any royalty for external clients. In short, you may server thousands of customers with a single SplendidCRM Professional 5-pack, so long as you only have 5 internal users of SplendidCRM.