The analysis below highlights the estimated cost of a Cloud instance vs. Server instance over a 3 year span. This cost-analysis will be based on the following subscriptions to Atlassian Tools:

Jira Software: 2,000 Users  •  Confluence: 800 Users  •  Jira Service Management: 50 Users

Cloud

V/S

Server

Jira Software Premium For 2k Users $469,500
Confluence Premium For 800 Users $160,275
Jira Service Management Premium For 50 Users $61,500
Atlassian Access Atlassian Access is needed for Enterprise-grade security and centralized administration across all your cloud products. For 2k Users $142,500
Marketplace Apps *Assumption based on historical analysis of app spend as % of Cloud spend. $167,878
Total Subscription​/License Fee
$1,001,653

Subscription​/License Fee

Over-licensing costs US and UK companies as much as $34 billion per year. To avoid this common pitfall, companies either need to keep rigorous track of who needs which software, or they need to move to the cloud, where the number of users can often be automatically tracked, updated, and viewed by admins.
Jira Software Server For 2k Users $90,000
Confluence Data Center For 800 Users $124,800
Jira Service Management Server For 50 Users $32,850
Marketplace Apps *Assumption based on historical analysis of app spend as % of Cloud spend. $88,227
Total Subscription​/License Fee
$335,877
Total Subscription​/License Fee
Cloud$1,001,653
V/S
Server$335,877

Cloud

V/S

Server

Cloud Migrations *$100k is a rough estimate for a mid-size migration from E7 Solutions, but these costs can vary considerably based on complexity of work $100,000
Total Set Up Fee
$100,000

Initial Set Up Costs

No Implementation Needed $0
Total Set Up Fee
$0
Total Set Up Fee
Cloud$100,000
V/S
Server$0

Cloud

V/S

Server

  • IT time and resources can be cut in half by a move off-prem. Atlassian, for example, guarantees 99.95% uptime, and if an incident does happen, we’ve got the resources in place to resolve it, quickly and without additional cost to you.
  • Moving to the cloud free up your IT teams to focus on strategic or urgent tasks instead of tedious ones. It’s also why 74% of organizations say cloud gives their team a competitive advantage.
No Maintenance Fees Atlassian becomes responsible for upgrading security/maintaining servers, replacing old technology with new, and regularly upgrading software to address feature requests and bugs. Covered by Atlassian $0
Total Maintenance
$0

Maintenance Upgrades, Security/Privacy, Performance Improvements, etc

  • With an average lifespan of 3-5 years, servers need to be regularly repaired and physically replaced. Systems downtime can cost three times as much as a year-long cloud subscription in a matter of minutes or hours.
  • The average amount a company spends on downtime is $5,600 per minute, according to 2014 research by Gartner. And since 2014, that estimate has only gone up, with more recent reports putting the figure somewhere around $9k. Of course, that’s just an average – and some companies have a lot more to lose – like Facebook, whose 14-hour outage in 2019 lost them an estimated $90 million.
Priority Support For 2k Users $15,000
FTEs Managing Server/DC *Based on 1 system adminstrator managing the server instance at an annual Salary of $100,134 (based on Ziprecruiter average Jira Admin Salary) and accounting for fully burdened cost factors such as federal taxes, healthcare, and operational employee overhead. $420,564
Planned Downtime *Opportunity cost of planned downtime incorporates the product license with the highest # of users times the average salary of software developers (based on U.S. Bureau of Labor Stats) times the # of annual upgrades and the average time to complete an upgrade. $1,827,720
Total Maintenance
$2,263,284
Total Maintenance Cost
Cloud$0
V/S
Server$2,263,284

Cloud

V/S

Server

Infrastructure Cost $0
Total Hardware Costs
$0

Hardware​/Hosting Costs

  • Physical servers call for physical space, which means a move to the cloud can open up existing space for other uses or remove data center real estate from your budget entirely.
  • The vast majority of on-prem resources (80%) are overprovisioned, meaning companies are paying for far more computing power than they need. In those cases, a move to a cloud service that automatically scales resources up, down, in, and out saves these companies as much as 30% annually, according to research by TSO Logic. If 80% of servers are overprovisioned, that means 80% of on-prem companies are using more energy than they need and paying higher energy bills than they otherwise would.
  • The problem here is that, with on-prem hosting, your IT team makes an educated guess about how much computing power you’ll need. If they guess too high, you’re paying for resources – servers, load balancers, power – you don’t need. On the other hand, if the team guesses too low, a lengthy, costly manual scaling process is in your future. You’ll need to add more servers or more computing power to meet demand – and that addition will require both money and manpower.
Infrastructure Cost *Average cost of an infrastructure for an instance this large is around $88,000. $264,000
Total Hardware Costs
$264,000
Total Hardware Cost
Cloud$0
V/S
Server$264,000

Total Cost of Cloud

$1,101,653

Total average savings of

$1,761,508 with Jira Cloud

Total Cost of Server

$2,863,161