Earlier quoted context omitted.
No, I don't think that's right. I can name other scenarios: 1) I am at a megacorp. I want to rapidly prototype without going through purchasing / finance / bureaucracy. 2) I have a personal and a work account. I learn something on weekends on the free tier and use it at work. Both of those have happened (with me, as the user), and led to millions of dollar of business to cloud vendors. In the case of #2, the cloud ve…
All good points, but I'll add that "free trial" is a very good hook, "free forever" is not. So offering free trial periods (like AWS do for a year) is very effective, and very measurable. Free Forever is clearly not self-sustaining, do one of us will inevitably be disappointed eventually, and i suspect that'll start by being you and end up being me.
1) Limited to a single user (no team use);
2) Not have appropriate compliance for corporate use;
3) Limited enough to be free to provide and not viable for any real-world use (e.g. 15 minutes / 100 API calls per month);
4) Incompatible licensing (AGPL/proprietary dual licensing is an example);
5) Making everything on the free model world-public (MANY rapid prototyping tools do this)
The goal is usually to be adequate for nights/weekends personal projects, open-source projects, and internal prototyping, but to require customers who can pay to need to pay. How you do that depends on your business.
The higher-level point is that working from categorical points is not good business strategy. As with any tool, something like free, free forever, etc. can be good or bad, depending on how it's used, and requires a careful case-by-case analysis. If you remove tools from your toolchain based on categorical guidelines, you will be at a disadvantage.
The nice piece about the "forever" is that people change jobs every 3 years. I exhausted my trial tiers at several vendors in my first job (several of which switched to paying). Guess who's not being experimented with in my current job? All the vendors whose free tiers I exhausted, but whom I didn't adopt.