AGPL means they can't compete on features, but they might have better hosting economics, better sales and marketing, etc. Or they can offer better features, but

AGPL means they can't compete on features, but they might have better hosting economics, better sales and marketing, etc. Or they can offer better features, but split those into a separate closed-source program that talks to yours. The latter is presumably why MongoDB switched away from the AGPL (which was controversial; but I'm always amazed at the entitlement shown by people receiving software for free).