I think this is a pretty reasonable compromise to stop big cloud companies from offering their service using their code. Putting the code under either Apache or MIT after 2 years seems like a good approach to me, I like it a lot more than the ‘open core’ scheme a lot of SaaS companies use.

I would actually entertain the argument of protecting themselves against free-riding if and only if they would publish a transparency report detailing how they reimburse open source projects for the “common infrastructure” like, say, Linux, that they use to build and run their commercial offering and how they arrive at the amount they consider fair for their use. So far, I have not been able to find anything remotely like that, so their while argument is marketing and gas lighting.