There are very few teams in the typical organization that can unilaterally veto a purchase. Security is one of them, and the easiest to get to reject the free

There are very few teams in the typical organization that can unilaterally veto a purchase. Security is one of them, and the easiest to get to reject the free version by restricting security features. In your model, the enterprise version is a marginal cost. Customers get 3/4 of the product for free, and decide whether they want they want to pay for the other quarter. A lot of people won't, or they'll write a batch script to replicate the single feature they want, or etc. In the "restricted security features" model, customers either get 0 features because security won't let them deploy it, or they get all the features. It also encourages startups to use the product since it's free... for now. A 3 person startup doesn't really need SSO or RBAC. They eventually will, as they grow, and they'll already be locked in.