Atlassian looks to the cloud for revenue growth with tiered subscriptions

Australian software giant Atlassian is introducing tiered pricing for its cloud products as the company looks to its corporate clients to improve the bottom line.

Having launched a Cloud Premium service in recent weeks for Jira Software and Confluence, the company will offer four tiers of subscriptions, right down to free editions of Jira Software, Confluence, Jira Service Desk and Jira Core for small teams, alongside discounts of 50% and 75% for academic and not-for-profit organisations, respectively. Premium subscription prices will be based on the number of users. 

“These plans allow us to optimize for a variety of customer use cases, industries, verticals, and markets in order to better enable customers of different shapes, sizes, and regulatory environments with the pricing and capabilities they need,” co-founder and co-CEO Scott Farquhar said in a low-key blog announcement of the changes.

“Atlassian products are vital to more than 150,000 customers around the globe. We’re proud to support 83% of the Fortune 500 – including companies like Costco, Delta Airlines, Office Depot, and Visa. Every one of our Fortune 500 customers is using at least one of our cloud products, and they’re joined each day by new companies signing up. 

“It’s clear that our customers see their future in the cloud. And they continue to choose Atlassian as their trusted partner. In fact, more than 90% of our new customers start with one of our cloud products. “

Farquhar said the changes will also improve the transition to cloud, and provide better data control and security.

Enterprise-grade security and data privacy upgrades will be made, including data residency controls so customers can choose where content is stored in the cloud. They’ll also be able to customise the URL for their Jira and Confluence Cloud sites to align with their brand.

Pointing to research and advisory firm Gartner’s prediction that 80% of companies will be collaborating in the cloud by 2023, Farquhar said Atlassian has seen migrations from its server to the company’s loud products increase by 66%, including clients such as BP, Nordstrom, MassMutual, and 7-Eleven.

A cloud migration assistant is being introduced for Jira later this year and is already in place for Confluence.