As you may have heard, on July 31, 2017, Atlassian’s monthly pricing is changing from license bucket pricing to progressive license pricing.
With the old model, monthly pricing was based on buckets. Meaning if you had 101 licenses, you would be in the 101-500 licenses bucket and pay $750 a month. With the new model, pricing is per user with progressive pricing. Meaning after July 1st, if you have 101 licenses, the first 100 licenses will cost $7/license and the 101st license will cost $4 bringing you to a total of $704 per month.
How monthly pricing is changing
Here is a graph showing an estimate of cost per user per month with old vs new monthly pricing:
As you can see, monthly pricing is going up for most people, but if you are paying for around 16, 26, 51, or 101 licenses, your bill could actually go down.
How annual pricing is changing
What about annual pricing? Is it progressive license pricing as well now? No. Annual pricing is still license bucket pricing.
Here is a graph showing an estimate of cost per user per month with old vs new annual pricing:
As you can see, annual pricing is going up for almost everyone, but is affecting certain groups more than others. If you’re paying for 500 licenses, you will not notice that much of a difference, but if you’re paying for 400 licenses, your costs will almost double!
What does this mean?
With 101 licenses, the new pricing saves you money. Hooray! But what if you were signed up for the 101-500 license bucket pricing before, had 200 users that actively use their licenses and 47 licensed users who never log in? With the old model, it doesn’t hurt to have these stale licenses hanging around. However, with the new pricing, you have $2,256 under-performing dollars per year that you could be using to buy software that your coworkers would actually use. Ouch!
So, what should I do?
Here is a graph of the new pricing showing an estimate of cost per user per month with monthly pricing vs annual pricing:
As you can see, you may be paying more or less with monthly pricing up until 200 licenses, but after 200 licenses it pretty much always makes sense to get the annual pricing. If you are on annual pricing, make sure you don’t have stale licenses bumping you into the next pricing bucket. If you are on monthly pricing, now is the time to start deactivating stale licenses.
VendorHawk’s Jira integration makes it easy to spot stale licenses.