But the switch from AGPL to SSPL didn't do either of those things.
AWS still built DocumentDB to compete with Mongodb, and didn't use any SSPL OR AGPL code in the implementation (at least according to their FAQ[1]). And AFAIK AWS isn't paying mongo any royalties.
Well, yeah, its mostly a bad plan, because while it can block competition with your code, it doesn’t block substitution with other code that provides the same function, and if you aren’t one of the big cloud providers, competing in the same function market with bundled services from the big cloud providers, whether or not it is the same underlying code, is the actual problem you face when your monetization is based around “sell a hosted service”.
but at the same time, they want people to be able to use the software for free (esp. at the start), to kick-start the network effect.
In other words, open-core business models want to have their cake and eat it. If you are able to make lots of money off said software, we want a piece of it after the fact. But we dont want to take on the risk of actually looking to build a business and compete on the same.
There's nothing wrong with making money and being profitable. But they have to justify investments taken with greed. This license change is motivated by greed, not by "making money" fairly.
Would anyone have given mongo a look if it was a fully proprietary technology? They would have gone bust years ago.