License Tier Upgrade Calculation

[Michael Wheatstone]

I am trying to calculate the cost of upgrading my Jira Cloud license Tier from 200 to 400 users, does anyone have a basic calculation of how to work out the rough cost as I do not want to request a quote until I am certain that we want to go through with the upgrade but need the figures to give a rough estimate of the impact of the upgrade on my teams budget.

I read somewhere that it might be:
Cost of old tier x days remaining on subscription/365

Cost of New Tier x days remaining/365 - Cost of old tier x days remaining on subscription/365 = cost of upgrade.

Example:

400 user tier ($45,500.00 x 197/365 = $24,557.53) - 200 user tier ($27,500.00 x 197/365 = 14,842.47) = $9,715.07 rough cost of upgrade

Any help appreciated.

Michael

[David Friedrich · Accepted solution]

Hi @Michael Wheatstone ,

first of all: you are correct! This is the way Atlassian calculates the upgrade price. So the longer you wait, the cheaper it gets ;-)

I understand you want to find out the cost of upgrading during your subscription period.
Just in case you and whoever reads this isn't aware, Atlassian has a pricing calculator:
https://www.atlassian.com/software/pricing-calculator
But of course this doesn't help with the cost for upgrading, just to know what you will be paying (at least) for the then upcoming period.

Here is how to calculate upgrades:

Since cloud and data center subscriptions are sold as term licenses, upgrades are prorated to the days remaining in the current annual term.

For cloud, this formula applies to upgrades for both user tier and plan (Standard → Premium).

Upgrade Price = New Subscription Price × (days left in subscription term / 365) minus Old Subscription Price × (days left in subscription term / 365)

Example

You paid $28,500 for an annual subscription of Jira Software Standard for 500 users, spanning the period of 25-Nov-2020 through 25-Nov-2021. 

On 2-Jan-2021, you want to upgrade to the 1,000 user tier (which costs $53,500) and asks to be walked through the upgrade price calculation:

$53,500 × (327 / 365) = $47,930.14

minus

$28,500 × (327 / 365) = $25,532.88

Upgrade Price = $22,397.27

[Michael Wheatstone]

Thank you, this confirmed what I thought it was but couldn't find anything to corroborate online.