“On paper, three years may look workable, but in reality, this is compressed for global enterprises used to five- to seven-year lifecycles,” said Sanchit Vir Gogia, chief analyst at Greyhound Research. “Microsoft and Oracle typically softened such transitions with extended support tails and hybrid options. Atlassian has been more uncompromising.”
Gogia said the strategy reflects operational priorities as much as innovation. “Atlassian no longer wants to split engineering across three delivery models,” he said. “The company’s cloud business is richer in margin, simpler to support, and easier to modernise.”
However, the economics tilt differently for customers. “Average cloud licensing costs 28% higher than data center equivalents, without accounting for add-ons like Atlassian Access,” Gogia said.
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