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I've tested both models extensively, and traditional freemium absolutely bombs with Indian customers. They sign up, extract maximum value from free tier, then create new accounts rather than upgrading. What worked for us was a 'reverse freemium' - full access for 30 days that downgrades to limited functionality. Conversion rates jumped 3x with this approach because it triggers loss aversion. As for cost drivers, cloud computing in India is actually MORE expensive relative to what customers will pay, so architecture matters enormously.