Just because they’re failing doesn’t mean switching licenses will help. HashiCorp did not increase the popularity of Terraform Cloud by clamping down on the ability of other companies to host Terraform services.

There were any number of things HashiCorp could have done to improve revenue generation from their products without changing the source license. When they realized they weren’t building the best SaaS version of their products, they didn’t try to improve their service. Instead they tried to run the competition out of business.