Cost Analysis of Atlassian Data Center vs Atlassian Cloud
Introduction
This blog’s purpose is to build an example cost comparison when considering migrating from Atlassian Server products to Atlassian Data Center or Atlassian Cloud. We found that while Atlassian’s self-hosted Data Center option was less of a licensing cost as compared to their Cloud service, you may end up paying more all together.
This post will not cover feature comparison of Data Center and Cloud. The example client is entirely fictional but migration costs are based on real-world experience. Atlassian, Partner, and 3rd party app discounts will not be applied to license costs. This post is purely for educational purposes and exists to help the decision-making process. Prices may vary.
Let’s Meet Our Client
Umbrella Corporation has reached out to Blue Ridge Consultants to perform a findings and recommendations engagement regarding their existing Server deployment and whether to purchase a Data Center license or migrate to Cloud. Umbrella currently has a Jira and Confluence instance which both hold Server licenses of 500 users. After receiving the client's system information, Blue Ridge has confirmed the Jira and Confluence instance sizing recommendations are mid-scale instances. Umbrella has Script Runner for Jira, JSU, and Tempo Timesheets as apps installed on Jira and no apps in Confluence. Okta SSO is a requirement for user login. Three employees currently administer the Atlassian tools. One is a full-time engineer, one is a project manager with their time split between multiple projects, and the last is an AWS Infrastructure Engineer.
License Costs
Atlassian Cloud (500 Users)
Line Item | Cost per Year |
|---|---|
Atlassian Access | $17,500 |
Jira | $51,000 |
Confluence | $37,800 |
Script Runner for Jira | $6,000 |
JSU | $2,575 |
Tempo | $9,750 |
Total | $124,625 |
Atlassian Data Center (500 Users)
Line Item | Cost per Year |
|---|---|
Jira | $42,000 |
Confluence | $27,000 |
Script Runner for Jira | $2,750 |
JSU | $1,200 |
Tempo | $11,500 |
Total | $84,450 |
Hosting Costs
Umbrella Corporation hosts their Server instances in AWS. To match Atlassian Cloud performance, let’s assume that a minimum of two nodes per application are required. To handle traffic a single load balancer is also needed. All AWS prices are based on On-Demand pricing and are likely to change in the future.
Atlassian Cloud
All hosting costs are built into the above license cost.
Line Item | Cost |
|---|---|
N/A | N/A |
Atlassian Data Center
Line Item | Cost per Year |
|---|---|
c5.xlarge (load balancer) | $1,489.20 |
4 x c5.4xlarge (App nodes) | $23,827.20 |
Elastic Block Storage 1 TB | $983.04 |
Total | $26,299.44 |
One Time Costs
Migrations costs are based on our past experience with instances of this size. Umbrella will be required to do an initial upgrade to Data Center. General support activity is not included. All employee and migration costs are purely estimates.
Atlassian Cloud
Line Item | Cost |
|---|---|
Migration to Cloud | $35,000 |
Employee Migration UAT | $10,000 |
Cloud Training | $7,500 |
Total | $52,500 |
Atlassian Data Center
Line Item | Cost per Year |
|---|---|
Upgrade to DC | $12,500 |
Employee Upgrade UAT | $10,000 |
Total | $22,500 |
Ongoing Maintenance Costs
Employee salary costs are based on the industry average and the assumption that the Umbrella will do two upgrades per year. General support activity is not included.
Atlassian Cloud
Line Item | Cost |
|---|---|
N/A | $0 |
Total | $0 |
Atlassian Data Center
Line Item | Cost per Year |
|---|---|
AWS Infrastructure Engineer | $15,000 |
Atlassian Engineer | $20,000 |
Project Manager | $10,000 |
Employee Upgrade UAT | $10,000 |
Total | $55,000 |
First Year Total
Atlassian Cloud
Line Item | Cost |
|---|---|
Licenses | $124,625 |
Hosting per year | $0 |
One Time Costs | $52,500 |
Ongoing Maintenance Costs | $0 |
Total | $177,125 |
Atlassian Data Center
Line Item | Cost |
|---|---|
Licenses | $84,450 |
Hosting per year | $26,299.44 |
One Time Costs | $22,500 |
Ongoing Maintenance Costs | $55,000 |
Total | $188,249.44 |
Ongoing Totals
Atlassian Cloud
Line Item | Cost |
|---|---|
Y1 | $177,125 |
Y2 | $124,625 |
Y3 | $124,625 |
Y4 | $124,625 |
Y5 | $124,625 |
Total | $675,625 |
Atlassian Data Center
Line Item | Cost |
|---|---|
Y1 | $188,249.44 |
Y2 | $165,749.44 |
Y3 | $165,749.44 |
Y4 | $165,749.44 |
Y5 | $165,749.44 |
Total | $851,247.20 |
Conclusion
Cloud ultimately is the more economical option, despite its higher licensing cost. This is due to ongoing hosting and maintenance costs in Data Center. Compound the cost with Atlassian’s initiative to become a cloud-first company by prioritizing Cloud updates and you have a winning argument for switching platforms. With recent updates to Data Center licensing costs, we will continue to see better value in the cloud moving forward.
Still Not Convinced?
Check out a more detailed report done by Forrester here: Spotlight: Cloud Migration Total Economic Impact | Atlassian