An Open Letter: Atlassian's Forgotten-Middle re:The Discontinuation of Server Licenses

[ITMAGE]

As many of us have mentioned in other posts, there is simply no time to budget for much of anything at this late date, and so at the very least we need an extension on purchasing server licenses (at the CURRENT prices) through the end of 2021. This will provide time to consider options and to find the funds necessary to move forward with whatever is decided. Also if a lower cost DC option were made available, it would need to be in the same ballpark as the current server licensing cost - at least for the 25 and 50 user options which most small business fall into. In any event, I have asked this before and I'll ask it again: What is the downside to Atlassian in extending server licensing purchases through the end of 2021? Would this not demonstrate that Atlassian listens/respects their customers, as well be a show of good will? If this is not done, then I would genuinely appreciate understanding the reasons why.

[David Willson]

Hey @Cameron Deatsch 

Thanks for checking out our website.

Yep we are in the cloud business and I do think that cloud is the direction that the majority of companies and governments are going.

Professionally, we have strict requirements around where data can live. In the cloud, answering the question 'where does the data live?" becomes much more complicated then with on-prem solutions. Specifically with Atlassian, data can be in Atlassian's cloud, or stored in vendor clouds depending on the apps you buy from the marketplace.

The commitment that Atlassian is moving to cloud is so clear, from the investor letter we know how big the forgotten middle is 30 000, ~16% and the fact that 75% of Atlassian customers have some sort of on prem. The letter also says that Atlassian now has a billion dollar loan, to continue the cloud train. Cloud is the future for Atlassian it has the resources are there to make it happen and underlying all of that is the culture to support the transition. Cloud is where Atlassian is going, and that makes so much sense to me.

I think it would have been a different story if Atlassian had announced that all on prem was going to the cloud; Server + Datacenter. At least then it would make sense. My guess is that the 80/20 rule applies, and that data center customers generate significant revenue so an abrupt shift of DC to the cloud would be financially apocalyptic.

Personally, my main challenge isn't the simple question of what is preventing us to going to the cloud, its the cognitive dissonance that comes with the abrupt decision to discontinue server, mandate cloud, and provide no cost effective data center option.

1) Atlassian has said for years 'can't do it all' that’s why there is a marketplace and a ecosystem of people who can make the features that won't get done by Atlassian. Now the message is 'we have time and we can do it all for you in the cloud'.
2) Atlassian is a large proponent of Agile, and agile isn't about the big bang its about the gradual organic growth. This is a big bang approach feels more like waterfall then Agile to me.
3) Atlassian is now asking for Trust to go to cloud, immediately after breaking it by signaling that they aren’t willing to help the forgotten middle get with an affordable DC option.

It feels like this:

Surely for the 30 000 forgotten middle an affordable data center tier could be created. Doesn't it just make sense to keep customers? Don't the researchers say its something like 5x-7x more expensive to get new customers over keeping existing ones? Atlassian knows that the forgotten middle are some of the most loyal and biggest advocates for Atlassian products. So why forget them?

Would offering the forgotten middle an affordable option, rewarding them for their patronage, loyalty and support that has allowed Atlassian grow to where it is today be so bad?

@Cameron Deatsch  could you send my letter to the founders? I would love them to read it.

Please imagine you are in the forgotten middle, and what this would feel like.

Ref: Shareholder letter - https://s2.q4cdn.com/141359120/files/doc_financials/2021/q1/TEAM-Q1-2021-Shareholder-Letter.pdf

[Nicolas Côté-Nolin]

As a fairly new customer (couple months only) of JIRA Software server, who spent countless hours setting up his team on it, that announcement is a slap in the face. 

[Ali El Banna]

We are now have a 25 license JIRA Software and a 25 license for JIRA Service Desk. We have critical information stored in our JIRA and therefore our company guidelines doesn't allow us to change to JIRA Cloude.

We are now really on the spot to change from JIRA, because of this decision JIRA has made, after I programmed and customized for almost 5 years to implement JIRA in our department.

I am frustrated and going through a crises right now, because of this decision.

[duchun]

I just think, data center is more expensive and would let most user leave atlassian and choose others easily.

atlassian will die because of their short-sighted.

as an atlassian expert, I have to learn new competence.

atlassian will die after stop server license.

atlassian dc and cloud is old technolgies which looks like docker or Kubernete replace EMC cloud and data center.

let the old stupid technologie die faster and earlier. history always repeated.

If I am atlassian CEO, I would move atlassian to free docker and be cheapter or free.

the better service would gain the wealth from the world.

it shouldn't come from license. riches should come for service.

no hand-work no gain.I would provide atlassian new continous innovation after this change.

there are nearly no real innovation for atlassian for long years.

the riches and glory is just belong to the real agile evangelist in the future.

now atlassian is old money and lost the agile evangelist heart.

do you support me to be the new CEO to change atlassian strategy, our great atlassian users?

[Anja Brkljacic]

My company has been using Atlassian products for 3 years now, the Server version. Data privacy limitations on Cloud (HIPAA) are one of the core reasons we have to stay on-prem, but are having a hard time justifying the 500 starting user tier for Jira Software as we currently only need the 100 user tier. Availability of lower starting tiers on DataCenter would make the switch away from Server a much easier decision. As-is, we are likely to stay on Server as long as possible. 

[David Willson]

--Repost

My Atlassian spark and excitement has gone out. As a result I've decided to step down from the role of community leader.

People are important, and any one person, statistically might not be. As just a individual I likely will fall into that category. That doesn't invalidate the sadness and disappointment that I feel, but when you stop caring, and when the thoughtful forward thinking messages sent by Atlassian
about building great teams, now ring hollow, instead of creating inspiration, it's time for change.

I am still gobsmacked by the fact that Atlassian is willing to write off 30 000 customers.

"It will be difficult to forecast how our 30,000 server customers will react to our recently announced end-of-life plans" (page 15)
https://s2.q4cdn.com/141359120/files/doc_financials/2021/q1/TEAM-Q1-2021-Shareholder-Letter.pdf.

For everyone looking for alternatives the best site I have seen is https://bye-bye-server.com/.

C'est la vie. Bonne chance.

[ZhaoChunsheng]

Appropriately increase the price of the server version instead of making it disappear.

[Normann P_ Nielsen _Netic_]

Whats the status of the Atlassian Cloud regading GDPR and the Schrems II ruling?

As I read it, Atlassian Cloud is a no go for EU companies in most cases, and with the Architechture - shown in https://community.atlassian.com/t5/Jira-Core-questions/SLA-for-Addons-in-JIRA-Cloud/qaq-p/1332913 - I belive that we have even less control over where JIRA data are processed by add-ons

[Jan-Niklas Staffa]

Another customer here that thinks the same. Being a small company of 90 employees and operating in the EU, the best solution for us would be to self-host Jira. This possibility is taken away from us.

I can only appeal to offer the same user tiers in data center that were available to server.

[Glen Collins]

Another customer here too. It's too bad Atlassian has decided to get rid of the small customer. My company has been using Confluence for the last 3 years with 100 user licenses. Getting rid of the server tier is just ridiculous because there are many small places who just cannot afford the exorbitant prices the DC version give the customer. Sure, you'll make tons of money from the DC customer but you're forgetting the SMALL companies out there. Plus some of us are not allowed in the cloud for reasons of privacy and securing our data. On premise is all we are allowed. So while I championed your products, maybe I'll find and alternative to replace it. I at least have two more years to replace it was maintenance is still available until 2024. It was good while it lasted but maybe it's time to move on.

-Soon to be former customer.