Perpetual (Server) licences are disappearing after nearly two decades in existence.
With Atlassian Cloud, Atlassian is making leaps and bounds in catching up with its younger competitors.
An increasing number of companies are opting for SAAS solutions. These solutions offer all-in-one subscriptions, including data support and hosting (no installation necessary).
The On Premise model is gradually becoming obsolete, as even though we feel that hosting and securing our servers internally is beneficial to us, the cost of version upgrades (around one version a month for Server editions) and maintaining our technical platforms and infrastructures require a certain amount of skills and time from our teams.
SAAS offers peace of mind and a solution to an economic reality whereby IT management is no longer only focused on the applications at the core of their company’s business.
In a world where everything is moving faster, rather than owning, we are renting all-inclusive services, such as the democratisation of prestigious multi-service workspaces, the collaborative sharing-based economy (flats, cars, bikes and even boats), car or mobile phone leasing, Cloud subscriptions…
The Atlassian Cloud model
The perpetual licence model is over; the model shared by the majority of SAAS solutions is a monthly or yearly subscription.
At Atlassian, licences are billed monthly and by user.
Yearly or monthly billing
By switching to yearly billing, you are billed by user segment: 1 to 10, 11 to 15, 16 to 25, etc.
Example: if you have 17 users, you will be in the 16 to 25-user segment.
The advantage of yearly billing is that it can be more advantageous if your number of users is relatively stable.
Example: billed monthly for 10 users, you will pay 70 USD (Standard edition) per month, or 840 USD in total over one year. Billed yearly, for to 1 to 10-user segment, the cost is 700 USD, or the equivalent of 10 monthly payments instead of 12.
The advantages of Cloud billing
The single anniversary date
The other advantage of Atlassian Cloud is that your anniversary dates are always fixed. For servers, meanwhile, each licence could have a different expiry date depending on the date of purchase. The anniversary date in the cloud depends on the purchase of your first licence. Each additional subscription or upgrade will be calculated pro-rata for the remaining months.
Example: Your platform expires on 10 December. You switch from 50 to 100 users on Confluence (standard edition) on 10 September.
You therefore only have 3 months remaining. Pro-rata, the amount for 3 months (5,000 USD yearly/4) is 1,250 USD.
As you will not be using the support for the 3 remaining months already paid for the previous 50-user Confluence licences (2,500 USD yearly), Atlassian will give you credit for the 3 remaining months, amounting to 625 USD.
There will then be a bill of 625 USD to pay for your upgrade. Maintenance credit and pro-ratas did not exist for Server licences.
The 4 editions tailored to your needs
Free for up to 10 users, you can then switch to Standard, Premium or even Enterprise editions according to your needs (functionalities, support or even additional storage). Find out more about the plans and prices available.
With Atlassian Cloud: a turnkey solution is rolled out in less than 5 minutes.
To help you make your decision, lots of people talk about one key indicator: TCO1 (Total Cost of Ownership). You can read this article to find out more.
Got any more questions on the Atlassian Cloud licensing model? DONOS Conseil is a certified Atlassian partner, and our team will be happy to answer all your questions. Get in touch!
- Laurent, X., 2020. Déchiffrer Le TCO (Total Cost Of Ownership) : Origine, Définition, Calcul, Bénéfices…. [online] Manutan. Available at: <https://www.manutan.com/blog/fr/lexique/dechiffrer-le-tco-total-cost-of-ownership-origine-definition-calcul-benefices> [Accessed 26 October 2020].