Excerpt from a freemium perspective by Box CEO Aaron Levie
With freemium, enterprise upstarts are turning the adoption and implementation process on its head, without having to compete head-on with the giants. By the time Box is talking to an IT buyer about replacing SharePoint or another legacy solution with our product, that company has already experienced our service through its employees. This means corporate customers are not paying until the service has been vetted and deemed successful by their own workers. Gone are the days of radically expensive, failed implementations of enterprise technology.
This new model's disruptive impact on the $246 billion enterprise software market is hard to overstate. Look into nearly any Fortune 500 company and you'll see the expanding footprint of the freemium model. Marketing teams are collaborating via Yammer's real-time activities feed. Sales teams are using Box to pull up important client presentations on their iPads. In some cases, it's the employee using a free version of the service. In others, these tools are sanctioned and paid for by the employer