Well, with or without software on the plug, it's still $99 in revenue that can fund software development, right?
The plug is made by Marvell. If Tonido buys it for $99 from Marvell, puts their software on it, and then sells it to you for $99, they don't make money.
Perhaps Tonido gets the plugs for cheaper than 99 dollars. Sounds like Tonido has a deal with Marvell.