In February 2025, Atlassian will implement another round of price increases for Data Center products, marking a significant step toward its cloud-first strategy. These changes will affect both list prices and advantaged pricing for Confluence, Jira Software, and Jira Service Management.
Why the Price Increase?
Atlassian remains committed to supporting Data Center customers while maintaining its Cloud-first approach. The decision between Cloud and Data Center should be guided by an organization’s unique needs rather than cost alone.
Over the past year, Atlassian has made substantial investments in security, performance, and scalability, ensuring that on-premise deployments continue to meet enterprise requirements. To sustain these ongoing improvements, adjustments to Data Center pricing have been introduced, reflecting the continuous enhancements being made to the platform.
In the last 12 months (Source: Atlassian), several new features have been implemented to improve security, efficiency, and overall user experience in Data Center, including:
- File attachment allow and blocklisting to provide greater content control
- Automated archiving to optimize system performance and storage
- Support for OpenSearch in Confluence Data Center to enhance search capabilities
These updates, along with continued advancements in security, performance, and user experience, reinforce Atlassian’s commitment to providing a scalable and enterprise-ready solution. The revised pricing structure aligns with these investments, ensuring that organizations continue to receive a secure and high-performing Data Center experience.
Advantaged Pricing Alignment
A gradual phase-out of advantaged pricing is underway to align with standard list prices, reflecting the true value of the offerings.
What Are the New Prices?
Effective February 11, 2025, the following Data Center pricing adjustments will take place:
Jira Software
- 1–1,000 users: 15% increase
- 1,001–5,000 users: 20% increase
- 5,001+ users: 25% increase
- Advantage pricing (all user tiers): 30% increase
Confluence
- 1–1,000 users: 15% increase
- 1,001–5,000 users: 20% increase
- 5,001+ users: 25% increase
Jira Service Management
- 1–1,000 agents: 15% increase
- 1,001–5,000 agents: 20% increase
- 5,001+ agents: 25% increase
User Tier Changes
In addition to price changes, Atlassian is introducing revised user tiers for Data Center. This update better aligns Data Center packaging with its scalability and value while creating a structure more consistent with Atlassian’s Cloud offerings. It also provides a clearer path for organizations that may consider transitioning from Data Center to Cloud in the future.
While this change represents an adjustment, it reflects Atlassian’s ongoing investment in security, scalability, and performance to meet the demands of enterprise environments. The new user tiers ensure that Data Center remains a powerful, high-value solution for organizations that require a reliable on-premise deployment.
Jira Software Data Center Advantaged Price
Atlassian is raising the Advantage pricing for Jira by 30% across all tiers. Confluence and Jira Service Management are already at list price.
In the past, advantaged pricing plans were introduced to allow long-standing customers to plan ahead as their prices gradually increased toward current list pricing. This approach created a significant price gap between new and existing customers. To address this, Atlassian is bringing impacted customers closer to list price over time.
Customers on advantaged pricing plans have benefited from the full set of features and investments while paying below list price for Jira Software Data Center. Over the next few years, Atlassian will continue aligning advantaged prices closer to list pricing.
What if I Have an Open Quote with Existing Pricing?
- If a quote was created before February 11, 2025 PT, the pricing listed on your quote will be honored until its expiry date.
- If a quote is edited on or after February 11, 2025 PT, the entire quote will be recalculated to reflect the new list prices.
- If an existing quote expires or is deleted, and a new quote is created on or after February 11, 2025 PT, it will reflect the new list prices.
What Are Your Options to Respond to These Price Changes?
Organizations have several paths to consider:
1. Renew Licenses Before the Price Adjustment
By renewing your Data Center licenses with a quote that was issued before February 11, 2025, and that is still valid, you can lock in the previous pricing and delay the impact of the increase.
2. Remain on Data Center
For organizations that need to remain on-premise for various security or compliance reasons, your Atlassian partner will work with you to keep competitive pricing for your Data Center instances.
3. Explore Atlassian’s Cloud Offerings
Transitioning to Atlassian’s Cloud services provides access to the latest features and improvements. Atlassian offers various migration incentives, including discounts and extended support during the transition period.
Cloud Benefits and Features
When considering a move to the cloud, organizations stand to gain numerous advantages over traditional on-premise solutions:
- Scalability: Cloud services provide on-demand scalability without physical infrastructure management.
- Automatic Updates: Always stay up-to-date with the latest product features, security patches, and improvements without downtime.
- Enhanced Collaboration: Cloud offerings, like Jira and Confluence, integrate easily with other tools and provide real-time collaboration features.
- Data Security: Atlassian’s cloud services offer encryption, disaster recovery, and compliance with regulatory standards such as GDPR.
You can test out the Atlassian cloud for free to determine if it’s right for your business.
Cost Comparison: Cloud vs. Data Center
Understanding the cost implications when migrating to the cloud is crucial. Here’s a breakdown of costs for both options:
- Licensing Fees: Data Center and Server licenses require upfront investments in hardware and software, while cloud subscriptions provide predictable costs over time.
- Operational Costs: On-premise solutions have additional costs for IT staff, hardware maintenance, and energy consumption, whereas cloud-based solutions shift these costs to the provider.
- Hidden Costs: Data Center setups may involve hidden costs, such as downtime, security breaches, or unexpected scaling requirements. Cloud platforms, with their scalable nature, often eliminate these risks.
Uncertain About the Future?
With these significant changes on the horizon, it’s crucial to assess your organization’s needs and make informed decisions promptly.
Seibert Solutions is ready to support your move to the Cloud or investment in Data Center through consultations, migration workshops, and special promotions tailored to your situation. Contact us to develop a strategy that best suits your organization’s future.