back to article Atlassian predicts its on-prem products will grow faster than cloud

Atlassian's share price has taken a sharp dive after the Australian collaboration corporation revealed decent results, but predicted its on-prem products would grow faster than its cloud. As The Register recently reported, Atlassian is months away from ending support for its Server products, leaving users with a choice of …

  1. Dan 55 Silver badge

    Don't think Atlassian will be hiring for much longer

    Server is growing due to changing the licencing structure.

    Cloud is growing slower than server and its growth comes from what seems like reluctant conversions from server, few customers start with cloud.

    The rest are trying to get the hell out of Dodge?

    Atlassian appears to have fundamentally misunderstood their customers, their customers want on prem and those software businesses that are silly enough to put their crown jewels in a vice would just put them on a private github instance and let copilot have at it.

    1. Anonymous Coward
      Anonymous Coward

      Re: Don't think Atlassian will be hiring for much longer

      I'm in the process of downsizing stuff for the company and I'm astonished at how much SaaS/cloud many companies seem to have. This quickly adds up and can be difficult to control. Yes, installing and running software isn't always easy but the costs don't tend to spiral like they do in the cloud. Wouldn't want to draw too many conclusions from our single case but I can imagine that SaaS vendors may soon see revenues dip noticeably.

    2. blackcat Silver badge

      Re: Don't think Atlassian will be hiring for much longer

      This is a proper catalogue of fail.

      I believe they still don't have any UK located cloud which makes some transitions problematic.

      Not all plugins are available on the cloud platform so if you've invested time and money customising your setup you either have to lose that customisation or redo it.

      And supposedly the migration is far from easy.

    3. Snake Silver badge

      Re: Don't think Atlassian will be hiring for much longer

      Wait for it: the EOY 'performance' bonuses for the C-suite, while the rest of their plan for world domination explodes around them...

    4. Anonymous Coward
      Anonymous Coward

      Re: Don't think Atlassian will be hiring for much longer

      Does this current process of stiffing on-prem customers loosely classify as "enshitification"?

  2. ChoHag Silver badge
    Holmes

    > "half of the migrations we're getting [to cloud] are from Datacenter."

    Did the customers who opted for the more expensive and difficult option of hosting on their computers on their site under their control do so for a reason?

  3. mpi Silver badge

    No!? Yes! Ohhh!

    So are you saying engineers like having critical infrastructre (And yes, I'd say the thingamajig that entire teams of very expensive people rely on for organising their work is pretty critical, yeah) on a server they fully have under control unless there is a really, really, really, REALLY good reason not to?

    I'm shocked! I'd say even flabbergasted isn't off the table at this point!

    1. nintendoeats

      Re: No!? Yes! Ohhh!

      On average, how much I trust a computer is proportional to how quickly I can unplug it.

      1. Bebu Silver badge
        Windows

        Re: No!? Yes! Ohhh!

        "On average, how much I trust a computer is proportional to how quickly I can unplug it."

        There has to be the germ of an el Rego unit of "Trust" in this. :)

        1. nintendoeats

          Re: No!? Yes! Ohhh!

          I have 3 plugseconds of trust :p

  4. phuzz Silver badge

    And there was me thinking that Atlassian had pushed customers into the cloud, by making their on-prem solutions horrible Java lumps that are a pita to administer, backup, update, etc. so that any solution where someone else has to deal with it was a better option.

    The cloud is someone else's computer, which means it's someone else's problem.

    1. Anonymous Coward
      Anonymous Coward

      If the on-prem solutions are such shitty Java lumps and a pita to administer they should lend themselves to containerisation - that is normally how we deal with such shite. I'm guessing they don't provide that as an on-prem option but likely do use it in the cloud.

  5. FlamingDeath Silver badge

    Javascript from 3rd party domains

    I notice that there is a lot of javascript being pulled from 3rd party domains on their platform, I suspect Atlassian doesn’t control them all.

    1. Anonymous Coward
      Anonymous Coward

      Re: Javascript from 3rd party domains

      I've never understood the logic behind referencing JS resources from another site rather than your own CDN (in the case of Atlassian) or a local copy to the web product (on-prem). You really are asking for shit to go wrong.

  6. Anonymous Coward
    Anonymous Coward

    Statutory and Customer requirements

    Means we can't use the cloud for many projects.

    Any cloud services we are allowed to use have to be hosted within the UK (not EU).

    Majority of our customers require us to control the servers and access too because they have the same requirement imposed on them.

    Some projects are so locked down we struggle to support development environments.

  7. George Costanza

    What a surprise!

    Customers continue to buy the on prem server product, rather than being forced onto the inferior cloud product that doesn't even have feature parity with the server product.

  8. Sahmee

    Depends on use case

    While many of the old hands on here will grumble about "somebody else's computer" etc. whenever a cloud service is mentioned, for customers that are small and looking for a Jira/Confluence type product for the first time the entry cost for cloud is far more attractive than on-prem and will stay that way until they get pretty large.

    For many orgs the cloud version of Jira does everything they need if they started out there. Migrating anything heavily-integrated from on-prem is going to be a pain, especially if it's been allowed to sprawl, and the supplier often can't do the heavy lifting in getting you there.

    For Confluence I can't understand why anyone would want it on-prem, especially with its security history.

    1. amacater

      Re: Depends on use case

      For Confluence I can't understand why anyone would want it

      There, FTFY

      if you are a large organisation (say > 1000 employees) or constrained by regulatory pressure, how can you EVER migrate to cloud successfully?

      For an individual, yes - having a small website / Wordpress instance hosted in cloud may cost less than running a machine at home - but not at scale.

    2. Anonymous Coward
      Anonymous Coward

      Re: Depends on use case

      "While many of the old hands on here will grumble about "somebody else's computer" etc. whenever a cloud service is mentioned, for customers that are small and looking for a Jira/Confluence type product for the first time the entry cost for cloud is far more attractive than on-prem and will stay that way until they get pretty large."

      FYI, just before the big push to force customers to the cloud, Atlassian did offer small teams licenses (up to 25 users IIRC) of Jira and Confluence for some $50 per year.

      Cloud became cheaper only after they killed that option.

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