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2
Matlab used to be what Python is for data analysis. Academic institutions could use it for free. It let you work with matrices and it could even run your computations on a cluster! The downfall was when they redefined "academic" to exclude research institutes, even public ones.
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Because of this, many libraries started out at providing free (or "open") re-implementations of MATLAB, like octave, and most notably matplotlib.
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I'm sure there is lesson in here about aggressive changes to your pricing scheme. And about selling to academia.