Atlassian confronts backlash over plans to stop selling Server product - Business Insider

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Atlassian customers say they're 'pissed' at the decision to cut off the Server product line, as the company promises it has an 'army' working on their concerns

known for popular project tracking tools like Jira and Confluence, told Business Insider at the time that the majority of its 180,000-plus customers were already using its cloud-based products and that 90% of its new customers opt for the cloud, too. The company has, and this move allows its development teams to focus versus splitting efforts across product versions.

He says some companies are evaluating whether to stay on Jira, while others have already made the switch to alternate products. , in turn, says it's working on several initiatives in response to the customer concerns that it's heard so far, and plan to continue the conversations, as well. Then there are customers who can't move to the cloud because they have highly regulated data and need more control over it. Usually, these are customers in the healthcare, government, or finance sector andsays it's working to make sure its cloud product can meet their requirements, through complying with standards like FedRAMP and HIPAA.

Certified Jira administrator Rachel Wright, who is based in Virginia, is one of that cohort. She won't be able to afford the price jump of tens of thousands of dollars to use the Data Center plan and a lack of expertise could make it hard for her to support potential customers. She plans to offer her specialist services in Server products until that's not an option anymore.

"My logical argument why we're committed to Data Center is through this transition, we know we're going to get more Data Center customers," Deatsch said. "We know our largest customers are going to be in the Data Center."For customers that don't need to keep data on private data centers, moving to the cloud will ultimately help them save money, Deatsch adds.

Some Atlassian customers he works with are now looking for different tools to manage their tasks, he said. Customers in Eastern Europe and Germany have been the most vocal about this change because those customers are a large portion of Atlassian's Server base today, Deatsch says. Companies from these countries have to comply with regulations like GDPR and may believe it's safest to keep data on premises because of evolving government guidelines.

In response to European concerns, Atlassian is working on full data residency for German customers, who have to keep their data in their country. Still, customers may see this as an opportunity to move to another product from Microsoft or Google, Klaudíny says.

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