Ask HN: Is licensed software still a viable business model?

I'm building a desktop app for developers which I plan to license and sell at a freemium model, with restricted feature set for free.

I almost feel bad doing this, like I'm following in WinZip's shoes, and I expect a 7zip to come along, replicate or improve upon my functionality, and open source it / give it away for free.

Should I be afraid of this? Is licensed code still a viable business model? Seems like everything is SaaS these days, or otherwise so complex that nobody could clone it without unreasonable effort (i.e. 3d games).