Atlassian Cloud vs. Atlassian Data Center

Going forward, enterprises working with Atlassian tools (Jira, Confluence, Bitbucket, etc.) must make a crucial decision: Choosing between Atlassian Cloud and Atlassian Data Center. Atlassian tools are vital for managing projects, collaborating, and driving development, and with Atlassian Server support ending in 2024, picking a path forward is crucial.

As an Atlassian Platinum Solution Partner, we’re excited to share clear, practical insights on how each option benefits large organizations.

Let’s dive in and explore together!

Atlassian Cloud and Data Center

Atlassian’s tools power enterprises worldwide, streamlining workflows and boosting productivity. But with support for Server having ended back in February 2024, you now have two alternative options to choose from:

• Atlassian Cloud: Hosted for you on AWS infrastructure. It’s quick to set up, easy to manage, and ideal for enterprises wanting flexibility and low maintenance.
• Atlassian Data Center: You manage this on your own servers or cloud platforms like AWS or Azure. It’s built for large teams needing control, customization, and scalability.

Both options can propel your enterprise forward. But the best fit depends on your needs—whether it’s compliance, user scale, or IT resources.

Deployment and management

Atlassian Cloud

With Atlassian Cloud, deployment is a breeze. Atlassian hosts it, so setup is simple—sign up, log in, and your enterprise is ready to roll. Atlassian handles the infrastructure, updates, and backups, freeing your IT team for strategic priorities. This is a game-changer for enterprises with limited IT resources or those aiming to simplify operations.

Atlassian Data Center

Data Center puts you in the driver’s seat. You deploy it on your servers or cloud platforms like AWS or Azure. It takes more setup but offers full control over your environment. Enterprises with dedicated IT teams find Data Center to be a solid pick.

Why it matters: Cloud saves effort; Data Center delivers authority.

Cost considerations

Atlassian Cloud

Cloud uses a subscription model—pay monthly or annually based on users. It’s scalable, with tiers like Free (up to 10 users), Standard (up to 50,000 users), Premium (up to 50,000 users), and Enterprise (up to 150 instances and 50,000 users).

Atlassian Data Center

Data Center requires a higher initial investment for licenses and infrastructure. However for enterprises with over 5,000 users, it can be more cost-effective long-term. You manage the budget, making it a strategic pick for scale.

Cloud has user limits per tool (e.g.,50,000 for Jira Software), while Data Center has no cap, which is perfect for larger enterprises.

Why it matters: Cloud offers clarity; Data Center optimizes for volume.

Scalability

Atlassian Cloud

Atlassian Cloud scales automatically as your enterprise grows. Add users or teams, and they adjust capacity—no extra effort required. This is beneficial for enterprises with fast-changing needs and ambitious plans.

Atlassian Data Center

Data Center scales on your terms. Add servers or upgrade resources to match your growth. Enterprises with big goals can fine-tune performance to keep tools humming.

Why it matters: Cloud adjusts instantly; Data Center scales strategically.

Security and compliance

Atlassian Cloud

Atlassian secures the Cloud with robust encryption and access controls, complying with standards like GDPR, SOC2, and 14 certifications (e.g., ISO 27001, ISO 27018). Your data is protected without extra work—great for enterprises with lean security teams. Data lives with AWS data centers, so check out your local laws. Under the Shared Responsibility Model, you’ll still manage data protection and training.

Atlassian Data Center

Data Center gives you security control. Customize it for strict sectors like finance, healthcare, or the public sector, and pick where data resides. Enterprises needing compliance precision thrive here, owning their security strategy.

Why it matters: Cloud simplifies protection; Data Center ensures compliance.

Performance

Atlassian Cloud

Optimized for steady online performance. Speed depends on internet quality, but it’s reliable globally. Enterprises with distributed teams gain consistent access, regardless if your connection to the internet is slow and/or drops.

Atlassian Data Center

By hosting Data Center locally, you’ll quickly find that performance shines—with low latency and high efficiency. You choose the hardware, tailoring speed to your needs.

Why it matters: Cloud performs steadily; Data Center accelerates locally.

Customization and integration

Atlassian Cloud

Cloud offers tons of Marketplace apps for quick integrations. Customization has limits, but it’s fast to deploy. Enterprises needing efficient add-ons find this option practical.

Atlassian Data Center

Data Center unlocks deep customization. Tweak code, link to internal systems, and tap a wide app ecosystem. Enterprises with complex workflows or legacy tech can build precise solutions.

Why it matters: Cloud connects simply; Data Center shapes fully.

User experience

Atlassian Cloud

Cloud updates are rolled out fast, keeping your teams informed about the latest features. It’s a smooth, modern experience that boosts collaboration, and enterprises love this forward momentum.

Atlassian Data Center

With Data Center, you control updates and deploy them when you’re ready, helping enterprises plan training and avoid disruptions for large teams.

Why it matters: Cloud refreshes fast; Data Center steadies the pace.

Support and maintenance

Atlassian Cloud

Atlassian handles cloud support while we handle updates, fixes, and maintenance. This means your IT team can focus on the work that matters.

Atlassian Data Center

You manage Data Center maintenance, with our basic support included. Premium options are available.

Why it matters: Cloud supports effortlessly; Data Center supports your way.

Tool-specific benefits for enterprises

Your tool mix may tip the scales:

• Bitbucket: Cloud offers ease and updates, ideal for smaller enterprise teams. Data Center provides control and customization, great for large organizations needing compliance.
• Confluence: Cloud sets up fast with real-time collaboration, perfect for distributed enterprise teams. Data Center offers customization and security, suited for large enterprises with specific needs.
• Jira: Cloud speeds deployment and teamwork, boosting enterprise productivity. Data Center delivers customization and compliance, which is ideal for complex projects.

Quick comparison table

Here’s a snapshot for enterprises:

Find the solution that fits you

The choice between Atlassian Cloud and Atlassian Data Center isn’t one between right and wrong—it depends on what your business really needs. Both approaches have their strengths, and we want to help you weigh the pros and cons.

Atlassian Cloud offers several benefits that appeal to organizations of all sizes. Easy deployment means you can get up and running quickly without worrying about servers or complex infrastructure. Atlassian takes care of maintenance, updates, and backups, saving your team time and resources-a big plus when you want to focus on your business; not IT management. Then there's automatic scalability: As your business grows, the cloud adapts without you lifting a finger. The security measures are state of the art, meeting standards such as GDPR and SOC2, which builds trust even when data is stored with Atlassian. 

Cloud is often the natural choice for globally distributed teams because it's stable and accessible from anywhere, as long as there's an internet connection. New features arrive regularly and automatically, keeping teams productive and up-to-date. In short, the cloud offers flexibility, predictable costs, the latest features, and a simple experience ideal for organizations that want to stay Agile.

Atlassian Data Center, however, remains an option that shouldn’t be overlooked. It gives you complete control over your tools, which can sometimes be crucial. You can build the infrastructure exactly how you want and store the data where you want. This can be an advantage in the public sector where strict data sovereignty rules may apply, such as in government or public organizations. Here, Atlassian Data Center can be a viable option if you are willing to bear the setup and maintenance costs.

But let's face it: The belief that everything is automatically safer behind your own firewall doesn't hold up to scrutiny. Security depends on how well you configure and maintain your systems, not just where they are located. So, Atlassian Data Center can be useful, but it also comes with responsibilities and work.

What does that mean to you? Think about what drives your business: Do you need speed, simplicity, and less IT overhead? If so, then the cloud might be the way to go. Are you focused on specific controls, such as government regulations, and do you have the resources? Data Center remains an option. Consider your team size, budget, technical capacity, and compliance requirements. Both options can work if they meet your goals.

Still not sure? Let's talk: We can help you decide!