Atlassian resolutely chooses the cloud and will discontinue its Data Center products. Customers have three years to migrate or find a solution.
The majority of Atlassian’s customers use the company’s solutions as a SaaS offering from the cloud. This doesn’t apply to everyone: especially in regulated sectors, the Data Center offering is popular. This runs on-premises at the customer’s site. Atlassian now announces that it’s withdrawing from the on-prem variant. Customers have until March 28, 2029, at the latest to find a solution.
Cloud, AI, and a 180° Turn
The company cites various motivations. In the cloud, it would be possible to better consolidate data and provide better integrations. Atlassian also points out that the cloud allows for injecting AI into teams. Atlassian and CEO Mike Cannon-Brookes believe that AI will become essential and must be embedded in products, including the browser.
Customers who disagree are out of luck: Atlassian will exclusively invest in its cloud offering, and the on-prem variant has to go. Enterprises that rely on Jira or Confluence within their own infrastructure and don’t feel the urge to migrate to a cloud-based variant with AI sauce must look for an alternative.
With this announcement, Atlassian is making a U-turn. Just last year, the company abandoned its cloud first mantra. The company opted for enterprise first and found that large enterprises in practice prefer hybrid environments with a local component. “Large customers shouldn’t fear that Atlassian will force an unadapted cloud strategy down their throats,” we wrote in 2024 based on quotes from the quarterly report. We now retract those words.
Timeline
On March 28, 2029, the Data Center products will officially reach end of life. On March 30, 2026, Atlassian will stop selling licenses and Marketplace apps to new customers. On March 30, 2028, the sale of such apps to existing customers will cease. New licenses or expansions will also no longer be possible from then on. Atlassian is confident that its cloud offering can also meet the requirements of customers in regulated sectors.
The company indicates that it realizes the change can have a significant impact. Those experiencing this impact can take comfort in the thought that “the decision was made with careful consideration.”