It is not bad but it is not open source and is closer to proprietary software. Even Windows is source an available with the proper NDAs.
And it does remove a freedom from the user, that of paying someone else to host and run the software on their behalf.
This seems like the software version of inkjets, sell the printer for free and make money on consumables while locking in their users to buy from them. In this way, “Source Available” gives away the software but locks the user into only being able to use them to host.
And before you say the user can self host, be aware that many times the user may not be a tech company and self-hosting would be too hard for them. That is why many organizations use cloud companies like AWS, etc and forcing the user to not be able to use their host of choice is taking away user freedom.
And it does remove a freedom from the user, that of paying someone else to host and run the software on their behalf.
This seems like the software version of inkjets, sell the printer for free and make money on consumables while locking in their users to buy from them. In this way, “Source Available” gives away the software but locks the user into only being able to use them to host.
And before you say the user can self host, be aware that many times the user may not be a tech company and self-hosting would be too hard for them. That is why many organizations use cloud companies like AWS, etc and forcing the user to not be able to use their host of choice is taking away user freedom.