Recent Changes to Atlassian Loyalty Discounts & Cloud Pricing

We have been covering the changes coming to Atlassian software since they announced their plan to sunset Server products.

As of February 2, 2021, Atlassian stopped selling licenses for their Server line of products and has introduced some Cloud licensing discounts and loyalty pricing for those customers who made the switch to either Atlassian Cloud or Data Center products.

However, they also stated that those discounts and loyalty incentives would decrease as time went on. Today, we’d like to share the updated pricing figures from Atlassian, in effect as of July 1, 2021.

Loyalty Discount Rate Changes

Discount Rate on Purchases Before July 1, 2021 Rate on Purchases on or After July 1, 2021
Data Center Loyalty Discount 25% (up to 1000 users)
40% (1,001+ users)
15 % (up to 1000 users)

30% (1,001+)

Cloud Loyalty Discount 55% (1,001+ users) 40% (1,001+ users)

Atlassian is offering the Data Center loyalty discount to ensure they mitigate server customer churn given the large increase in new DC prices, while also ensuring that 3-year Total Cost of Ownership (TCO) is favorable for server customers that migrate to the cloud vs. migrating to DC with loyalty discounts.

On the other hand, the Cloud loyalty discount is a 3-year ramped pricing program (55%, 40%, 20%) that is intended to help our largest customers transition from server/Data Center to the cloud.

The Loyalty Program is meant to make it as easy as possible for existing on-prem customers to realize the benefits of moving to the cloud.

What customers are impacted by the changes?

Customers who are currently taking advantage of the loyalty discount will see a change on their next bill on or after July 1, 2021.

Additionally, customers who are thinking about using a loyalty discount will want to be advised about the upcoming rate change.

Updated Cloud Pricing Tiers in Anticipation of the 20,000 User Tier GA

Atlassian is reducing prices for 1,001+ user tiers for Jira Software (JSW) Cloud and Confluence Cloud (Standard, Premium, and Enterprise plans) in preparation for the launch of 10,001-20,000 user tiers, effective Jul 1, 2021.

As they evolve the ways we support their largest customers, Atlassian wants to make sure cloud offerings remain accessible for them, which is why they are reducing the prices of their cloud user tiers 1k+ for JSW and Confluence.

Their hope is that these new prices, in addition to the increased user limit, will help large enterprise customers, who want to scale with Atlassian.

What customers are impacted by the changes?

Customers with 1001+ users for Confluence Cloud or Jira Software Cloud will see a price reduction on their next bill on or after July 1, 2021, PT.

10,001-20,000 User Tiers for Jira Software Cloud and Confluence Cloud General Availability (GA)

With the new 20k user tier limit going into GA, Atlassian is also introducing new pricing tiers for customers who want to set up 10,001-20,000 users on a single product instance.

Unfortunately, the exact pricing details aren’t yet available, but Atlassian is sharing the announcement to provide clients time to prepare.

Atlassian has been working to ensure its cloud offerings meet the needs of their enterprise customers, especially when it comes to scaling. Now, they are offering additional scale with the ability to support up to 20,000 users for core products.

They will also be offering up to 35,000 users on a single instance of Jira Software & Confluence in EAP for customers later this year and will share more details then.

What customers are impacted by the changes?

Large customers who are waiting to migrate to the cloud due to scale will be able to start planning their migration with this new milestone. Existing, large cloud customers will be able to plan for their growth.

Additionally, customers who had to buy multiple instances due to the 10,000 user limit can now consolidate up to 20,000 users on one instance.

Can customers combine the higher loyalty discount rate (FY21) with the reduced prices for 1,001+ cloud user tiers?

Unfortunately, no. If a customer has an open quote with the FY21 loyalty discount rate for cloud products at 1,001+ user tiers, they can either:

  • take advantage of the FY21 loyalty discount with the FY21 cloud user tier prices, OR
  • create a new quote with the FY22 loyalty discount rate and the reduced FY22 cloud user tier prices (progressive pricing) on or after 1 July 2021 PT.

If you’re planning a Cloud or Data Center migration, Coyote Creek can help!

We are Atlassian Platinum Solutions partners, and we can help you determine which licenses are the best fit for your current needs, while also helping you plan for future scalability.

We’re happy to assist with any licensing co-termination so that your migration will be as cost-effective as possible for your organization.

Reach out today for a licensing quote or migration consultation.