Technology
The Free Tier Quietly Disappears
Software companies spent a decade giving away a usable product to build a funnel. The economics of that giveaway changed when the marginal cost of a free user stopped rounding to zero.
Friday, August 21st, 2026 Independent & Reader-Supported
Software companies spent a decade giving away a usable product to build a funnel. The economics of that giveaway changed when the marginal cost of a free user stopped rounding to zero.
For a widening set of manufacturers, the machine is now the customer acquisition cost and the maintenance agreement is the business. The shift is rewriting how these companies are valued.