As organizations continue to explore the
benefits
of cloud migration, many still encounter significant obstacles preventing a full transition to Atlassian Cloud. While Atlassian Cloud offers scalability, flexibility, and enhanced collaboration features, certain blockers—primarily related to
security
and compliance—remain in place. These blockers can make it challenging for organizations to migrate their data and workflows seamlessly. This article outlines the primary blockers to Atlassian Cloud adoption in 2025 and provides insight into when these barriers might be addressed. It also explores key considerations like HIPAA compliance and cost comparisons to help guide your cloud strategy.
Atlassian Cloud vs. Data Center
Atlassian Cloud and Data Center provide distinct hosting solutions tailored to different organizational needs. As more businesses undergo digital transformation, understanding these hosting options is essential for aligning technical capabilities with business goals.
Atlassian Cloud is designed for teams that need fast onboarding, simplified operations, and automatic feature upgrades without the overhead of managing infrastructure. This Software-as-a-Service (SaaS) model helps accelerate innovation and collaboration.
In contrast, Atlassian Data Center serves organizations with more stringent requirements for customization, compliance, or data residency. It is a self-managed environment ideal for those requiring granular control over system configuration, performance, and internal policies.
Choosing between Atlassian Cloud and Data Center depends on your organization’s unique priorities in terms of product availability, security, compliance, scalability, maintenance, and cost. For example, your organization may opt for Atlassian Cloud because it provides access to advanced tools like Jira Product Discovery, Statuspage, and Halp, which are not available on the Data Center platform.
Cloud (Software as a Service - SaaS)
Atlassian Cloud is a modern, always-on, and secure SaaS platform that significantly reduces the operational burden on IT teams. It is built to support global access, rapid scalability, and enterprise-grade reliability.
Built-in security, privacy, compliance, and reliability
Reduced operational, IT maintenance, and hardware costs
Continuous feature updates and faster innovation
Flexible pricing plans (Free, Standard, Premium, Enterprise)
Seamless integrations with third-party SaaS tools and Atlassian products
When to Choose Cloud:
You want to eliminate manual software upgrades and maintenance
You require real-time security updates with 24/7 monitoring
You need globally accessible tools without requiring VPN access
You aim to enhance business agility and digital transformation
Data Center (Self-Managed Deployment)
Atlassian Data Center is designed for organizations that must retain full control over deployment. Whether deployed on-premise or through cloud providers like AWS and Azure, Data Center offers a customizable solution for mission-critical environments.
Key Features:
- Greater administrative control over security, compliance, and data residency
- Flexible deployment options (single-node or clustered)
- Self-managed upgrades and maintenance
- Optimized performance for large-scale enterprises
- Data cleanup features for migration planning
When to Choose Data Center:
- Your industry requires compliance with regulations that are not yet supported in Cloud
- You must keep product data within your own infrastructure
- You need more customization, control, and dedicated resources
Security & Compliance: Cloud vs. Data Center
Security and compliance are often top concerns for businesses considering cloud migration. Here’s how both platforms compare:
Atlassian Cloud:
Data Encryption: Managed encryption in transit and at rest
Data Residency: Available in 11 countries across paid plans
Audit Logging: Organization-wide via Atlassian Guard
Advanced Security: API token controls, mobile device management
Compliance Standards: Supports GDPR, PCI DSS, SOC 2 Type II, ISO/IEC 27001, HIPAA-ready
Atlassian Data Center:
Data Encryption: Managed by your organization
Data Residency: Fully controlled by your organization
Audit Logging: Product-level logging only
Advanced Security: Managed by your organization
Compliance Standards: Compliance is organization’s responsibility
HIPAA Compliance in Atlassian Cloud
A major milestone for healthcare and life sciences organizations is Atlassian HIPAA compliance. The cloud platform is now HIPAA-ready, meaning it supports safeguards for protected health information (PHI). Organizations can now use Jira and Confluence Cloud in ways that align with HIPAA’s administrative, physical, and technical safeguards.
Key Highlights:
Atlassian signs Business Associate Agreements (BAAs) for eligible Enterprise plans.
PHI handling protocols are in place across hosting, logging, and user access control.
- Encrypted data storage and transmission ensures confidentiality.
Organizations seeking Atlassian Cloud HIPAA compliance should contact Atlassian Advisory Services or partners like Seibert Solutions to validate their use cases and implementation strategy.
Performance & Availability: Cloud vs. Data Center
When evaluating Atlassian Cloud availability and system performance, organizations should consider service guarantees and scaling capabilities.
Atlassian Cloud:
High Availability: 99.9% uptime SLA (Premium)
Scalability: Elastic scaling, multi-level redundancy
Disaster Recovery: Handled by Atlassian
Data Storage Limits: Up to unlimited (Enterprise)
Performance Optimization: Continuous improvements
Atlassian Data Center:
High Availability: Requires dedicated HA deployment
Scalability: Requires infrastructure scaling
Disaster Recovery: Managed by organization
Data Storage Limits: Managed by organization
Performance Optimization: Custom optimization required
Cost Considerations: Cloud vs. Data Center
When deciding between Atlassian Cloud and Data Center, total cost of ownership (TCO) is a key factor. Below is an updated comparison using our latest visual templates:
Atlassian Cloud:
Pricing Model: Per-user or tiered subscription
Total Cost of Ownership (TCO): Lower (no hardware or IT maintenance costs)
- Billing: Monthly or annual
Support: Varies by plan (Free to Enterprise Support)
Atlassian Data Center:
Pricing Model: Tiered pricing, annual commitment
Total Cost of Ownership (TCO): Higher (includes hardware, IT staffing, infrastructure costs)
- Billing: Annual only
Support: Priority or Premier Support (separate purchase)
For most organizations, Cloud is the recommended choice due to its lower maintenance burden, built-in security, and continuous feature updates. However, Data Center remains a strong option for enterprises requiring strict data control, compliance with regulations, or extensive customization.
Cloud Blockers
Your Product Must Comply with a Regulatory Standard That’s Not on Our Cloud Roadmap
One of the most common blockers for cloud migration is compliance with regulatory standards that are not yet available in Atlassian Cloud. Industries like healthcare, finance, and government must adhere to strict frameworks, such as FedRAMP and HIPAA.
Organizations affected by these standards may find that Atlassian Data Center is still the only viable choice until full support is added to Cloud.
Your Product Data Is Mandated to Remain in a Self-Managed Environment
Certain organizations—especially those handling classified, proprietary, or region-bound data—may be legally obligated to keep their data on-premises. Although Atlassian has improved its data residency tools, some businesses require additional assurance that Cloud cannot yet provide.
Cloud Roadmap
Atlassian continues to expand its Cloud compliance capabilities. Many regulations, including new certifications and standards, are scheduled for future support. Organizations should monitor the Atlassian Cloud Compliance Roadmap to track progress.
Staying informed allows teams to time their migrations around the availability of features critical to their security posture.
Get Started with Cloud Migration
Navigating cloud migration challenges can be complex, particularly when regulatory compliance and system availability are top of mind. If your organization is facing blockers to moving to Atlassian Cloud, Seibert Solutions can help.
We offer:
Atlassian Advisory Services for compliance planning
Atlassian Data Migration support to ensure minimal downtime
- Tailored cloud readiness assessments
Contact us today to learn how we can help your business make a secure, compliant, and confident transition to Atlassian Cloud.