Making the move to cloud can be a big commitment. With that commitment, though, is an investment well made with Atlassian Cloud. When you add up how much your organization's server, maintenance, and other on-premise infrastructure expenses are, lining that total cost of ownership with the one-time cost and ROI impact of Cloud assures you your team made the right decision.
Hear our full discussion on how impactful Atlassian Cloud can be on ROI for your business, or skim the transcription below.
Hey Pam, it's good to see you again. How are you doing?
Hi, how are you today?
I'm doing great. Thank you.
Good. Nice to see you.
Good to see you too. So if you remember in our last conversation, we talked about our customers having interest in making the move to cloud. They had a lot of questions about what it looks like as far as disruption and having a partner to help them and we were able to walk through that. So our discovery process, our free cloud assessment, all that great stuff. They're on board with cloud now. They do still have some concerns about cost, so I was wondering if you'd have a minute to talk about that with me today.
Sure, absolutely. Yeah. Cost is a big consideration when it comes to migrating to the cloud.
It sure is. Yeah. So a couple of things that they did mention just about the upfront costs with cloud [were] some of the licensing issues. So do you want to go over that a little bit with me?
Yeah. I'd love to talk with you about that. You know, cost can be a really big deal and when customers are traditionally running an on-prem environment, they're paying not only for the licensing, but they're paying for their servers, for the software, for the maintenance, for folks to maintain that environment. There's a lot of operational expense that goes into managing and maintaining that environment and so by moving to Atlassian Cloud, the customer is freeing up those expenses and they may see, depending on what level of licensing they have, there may be a slightly higher uptick in the cloud licensing, but maybe not.
Atlassian's done a great job of pricing discounts for customers. Right now, their loyalty discounts are between 40 and 55% moving to cloud and in their community licensing program, customers can get from 75 to 100% off if they're a nonprofit organization. So we need to take a close look at the cost of the licensing, but that's not the end of the story. In order to really come away with the true total cost of ownership, we need to look at those operating expenses and what is it costing to run that infrastructure in that instance on-prem versus in the cloud.
So that's why a lot of businesses are moving to the cloud and in addition to that, really it helps give them more of a competitive advantage in moving to the cloud, because now we can take those same resources and focus on innovation, focus on revenue, generating activities and really work to beat the competition in their respective spaces. So those are all, some of the things that kind of go into a total cost of ownership analysis.
Okay. Yeah, that's really great and then another thing with moving to cloud and related to cost is the return on investment. So, sure there are some upfront costs and might look a little half due to customers at first, but there's a really good ROI for cloud, right?
There is absolutely, there is absolutely. So we can provide an assessment and use the customer's actual figures on what their costs are today and show them what that ROI is and sometimes it's more than just cost savings. It's improved time to market, it's speed to innovation, it's a higher level of revenue generating activities, excuse me. So we look at all those things in a very detailed, very focused way, and this is an assessment we can deliver to a customer for free very quickly to show them what their return on investment is and how moving to the Atlassian Cloud really helps them accomplish their business goals and objectives, not just technologically, but actually delivering a higher return on investment.
Well, that's great. Yeah. I definitely want to touch on that migration assessment plan in our next video, but I do appreciate you talking to me about all the costs and ROI, all of the downtime issues that there could be with on-prem. So I'll bring that back to the customers and then we'll talk about that migration assessment plan after in the next video.
That sounds great, Sarah. Thanks so much. I appreciate the call.
Thanks Pam, you too. We'll see you next time.