We are currently using JIRA on Cloud and want to explore options and perform a pilot to move it on-premise. How can we set up the same, with the existing licenses that we have on Cloud?
You will need to download and install a Jira server, export your data from Cloud with the standard backup, and import that into the server (assuming you want to keep your Cloud data).
You cannot use Cloud licences for Server installations, they're not the same thing. You will need to buy new licences for Server (then cancel the Cloud subscription when you've moved)
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