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The past two weeks were epic at Addteq communicating to our clients how the newly announced Atlassian pricing changes may affect their organizations.  Besides endless calls during the day and sleepless nights preparing emails to customers, it was equally exciting to work with all of our clients during this time. Atlassian announced pricing increases earlier this week. The increases go into effect on October 3rd, 2019Atlassian relies on partners like Addteq extensively for messaging, pre-sales, demos, sales, and services work. 

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How Addteq Analyzed the Pricing Changes: 

- For server, new Jira license prices will go up ~40%-300+% depending on the user tier, while existing licenses will see increases of 15% upon renewals and upgrades.

- New Data Center Jira license prices will go up 70% (500-user tier), while other tiers see an increase of 10-25%. Existing Data Center licenses get increased by 10-25%.

- Cloud pricing appears to see more moderate increases.

- Server pricing might continue to increase considering the record of the past 2 years (20-25% per year). A clear sign that Atlassian is focusing on Data Center and Cloud. 

- Cloud pricing, especially at higher users tiers, has significant savings in the operational costs associated with on-premises as cost per user decreases. (Infrastructure costs, Resources costs, Operational costs, Opportunity costs are saved)

- For existing server customers with more than 500 users, Data Center could be a cheaper option to look into in the near or long term.

- For Potential Customers with less than 1000 user, Atlassian Cloud could be a better option for you.

- Price increases are not linear. It is logarithmic and based on the user tiers. So, the percentage of price increase dependent on what license tier you have.

Note: Quotes created before September 30th 2019, will use existing pricing.

Don't be deterred by the pricing changes. Atlassian is still the best option, as long as you select the right deployment option. Rest assured, Addteq has the right solution for your team. Simply choose the user tier and we will help you choose the right option that will suit your requirements. 

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Though the price for Cloud looks higher, the cost per user significantly decreases considering other overhead costs.

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We also noticed that there are some customers who are not 100% Atlassian Cloud-ready nor want to deal with the hassle of running these DevOps applications internally.

Addteq is helping these customers in their journey by hosting them on Codefactori with up to 80% cost savings.

Read more about how Addteq is thinking about how an automated cloud hosting platform can give your team the visibility it needs and 5 ways to make application upgrades less painful