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Cost savings of Jira Cloud over a self hosted instance

I've noticed many organisations don't really quantify the impact of maintaining physical or cloud infrastructure when looking at software costs.  However, the headline licensing price is only a small percentage of the total cost of ownership.  I have attempted to put together my own rough estimate of how much it would cost to run the smallest possible data centre instance in AWS (500 users) versus the Software as a Service model provided by Jira Cloud.

The example below is based on calculations we did for an existing client- pricing is in USD.

Typical Self Hosted Jira Set up – 500 users:

Hosting Costs*: $48,000
Partner infrastructure approx. costs**: $33,000
Licensing: 500 user data centre license – $42,200 

Total: $123,200 per annum

* This is based on the minimum AWS suggested set up by Atlassian

** This is assuming you will use a cloud partner to look after your AWS/Azure and handle backups, alerting etc. If you have these functions internally, you will need to factor in the cost of those resources.

Running the equivalent in Jira Cloud:

Licensing: 500 users (cloud standard) - $28,500 per annum

Licensing: 500 users (cloud premium) – $46,500 per annum

So in this example of a typical set up the cost savings would be 62% even with the premium product version! And you have just removed the hosting burden.

This is what my research leads me to believe anyway...  anybody else got a take on this?

 

1 comment

Bridget Community Manager Feb 12, 2021

Wow - this is super interesting @Aiden Marriott ! Thanks for sharing this breakdown. 

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