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Atlassian Cloud vs Data center: Which one is right for your business?


Table of Contents


Upon starting your journey with Atlassian, there are a lot of things to take into consideration ranging from the obvious to the more specific. As a start, you might want to check whether Atlassian products fit your needs in the first place, are they good value for money, do they offer flexibility with add-ons, and the list goes on. 

But one of the most important decisions you need to carefully consider is choosing between the three -and soon to be two- available hosting options: Cloud, data center and server.

Ever since Atlassians’ announcement to retire its self-managed server offerings by 2024, both Atlassian clients and marketplace partners began to focus more on cloud. On the one hand, marketplace partners have been enhancing their cloud offerings in an attempt to reach feature parity and guarantee a smooth migration. On the other hand, clients have been migrating to the cloud at an unprecedented rate.

As a result, we have been receiving a host of questions regarding the benefits of each hosting option, what differentiates them, and which option is the right fit for various types of businesses.

We will try and answer these questions in this blog post, which is the first of a blog series dedicated to cloud migration. The series will be divided into four main parts:

  • The differences between Atlassian hosting options
  • The things to consider before migrating to Cloud
  • Common myths and misconceptions about cloud migration 
  • Best practices for a successful migration

In this blog post we will mainly cover cloud and data center because they are about to be the only two hosting options for Atlassian.

1. Atlassian Cloud

Purchasing Atlassian cloud means that all of your instances are hosted within Atlassian servers. Cloud hosting has gained more popularity thanks to its convenience, scalability and reduced cost of ownership.

Cloud hosting has its fair share of skepticism. Concerns over compliance and security remain in highly regulated industries, which is not necessarily due to vulnerabilities but rather to the way things are for these industries.

An article published by Atlassian in 2021 details the reasons why many of its customers have opted to migrate from server and data center to the cloud.

The study found that 65% of the surveyed customers stated opertaional and maintenance costs as the main reason for their switch. A further 62% leaned towards cloud hosting as it eliminates manual upgrades and guarantees optimal performance. Last but not least, 31% of Atlassian customers obviously favors the cloud as it helps them swiftly navigate between remote and office working.

2. Atlassian Data Center

Referred to as the “Self managed” option by Atlassian, hosting on  data center gives you the freedom to host Atlassian products either on your own infrastructure or third party cloud providers such as AWS or Azure.

Obviously, this can be perceieved as the old way of doing things. Having a bunch of servers that need constant maintenance and eventually high costs screams “BAD IDEA” for start-ups. However, for big companies or governmental agencies -with the necessary resources to deploy and maintain their infrastrcure, data center is likely the best solution, if not the only one.

A data center deployment means IT teams have greater control over their Atlassian products in terms of both security and data privacy. This is extremely crucial for customers who need to protect user data and comply with strcit regulations.

3. Which hosting option is right for your business?

Deciding on a hosting option depends entirely on your business objectives, IT bduget, industry, among a host of other factors. Each hosting option be it cloud, data center or -the soon to be discontinued- server comes with its fair share of pros and cons.

For example, cloud deployment is ideal for small and medium size businesses who don’t necessarily have neither the time or resources to sel-manage their Atlassian products. As we have mentioned earlier, Atlassian cloud helps customers eliminate manual upgrades and costs associated with hardware and maintenance. Choosing cloud also means customers will have a team of Atlassian experts at their disposal to help them keep their data secure through real-time updates. Additionally, cloud deployment guarantees a faster deployment, more felxibility with regards to remote working, and of course, scalibility.

However, with all this being said, and despite the obvious benefits of cloud, some businesses and organizations tend to (or perhaps need to) consider other alternatives due to strict regulations and various data privacy laws. Thnik of government agencies, healthcare instituitions and the list goes on.

For these industries data center or server deployments are viable options to remain compliant and guarantee more security and control, although cloud is progressivly starting to gain ground in some countries recently.

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Atlassian Cloud vs Data center: Which one is right for your business?