Why is it more expensive to move to an annual account vs staying on a month account?

[Jason Burds]

I'm curious about why annual billing is more expensive than monthly billing.

Does anyone know why?

[Trudy Claspill]

Hello @Jason Burds 

Welcome to the Atlassian community.

We would need to see the specific pricing quotes you are viewing.

One reason it might be more expensive is because on a monthly billing cycle you pay for only the actual number of users that you have licensed. With an annual billing cycle you have to select a user tier specifying the maximum number of licensed users you expect to have at any point during that billing cycle.

Let's say you expect to a maximum of 60 users at any given point over the annual billing cycle. In that case you have to select the user tier for 51-100 users at an annual cost of $8150 (for Standard).

Now let us say you had actually 60 users each month and were on a monthly billing cycle. For twelve months that would be

60 * 8.15 * 12 = $5868

But if you suddenly bumped up to 100 users in the first month and stayed at 100 users for all twelve months then the cost for the year would be

100 * 8.15 * 12 = $9780

That is more than paying annually for the 51-100 user tier.

[Dave Rosenlund _Trundl_]

Great example, @Trudy Claspill! I would add... 

Remember that the community is a peer network of (mostly) Atlassian customers. So, in the end, we can not speak for Atlassian regarding pricing and billing.

Contact the Atlassian Cloud customer advocate team if you feel a mistake has been made (if Trudy's example doesn't apply to you).

Please do come back and update this thread though. Let us know how you make out.

Good luck,

-dave

[Jason Burds]

We have 70 users at the moment and no plans to grow for the next 12 months.

Thanks for your answer.