Free software allows new businesses to enter markets with a lower upfront investment than old ones, hence creating jobs (including jobs related to using that fr

Free software allows new businesses to enter markets with a lower upfront investment than old ones, hence creating jobs (including jobs related to using that free software.) Now, are they just siphoning profits (and wages) from the older businesses in order to create these jobs? In my opinion, it's more the case that the older business had a high price initially to offset their upfront software costs, and by the time sufficient free software appears they are just riding it without having ever had to distinguish themselves as the 'premium' option, even though it's a fact they aren't even trying to develop to the non-premium market with lower prices. So the new folks come, they have lower prices, and a lot of people that would have never used that service start using it. And unless the older businesses fail to justify their premiums, this should grow the market enough to preserve high wages. Eventually the new business will (should) develop their own in-house solutions beyond the free software, and you'll have the cycle repeat itself.