That's exactly what it is. The only difference to hiring a programmer to write an application for you is that you don't get to tell them what to make. Personally, I don't want to hire anyone; I want a product that works and that's it. If there is an update or better version I can choose then whether I want to buy that too or not.
A real service, such as providing cloud facilities, is OK, but a product? Its worse that that: not only do you not get a say in what the product does, it will change from under your feet as the whim takes the developer. They don't give a stuff because they've already got your money, and they don't have to worry about making something someone wants in order to have a decent lifestyle (unless they really screw up for a lengthy period). They haven't, and won't invest in their own company but get the customer to do that.