If you’ve ever wondered how to save on Jira licenses, you’re not alone.Many companies unknowingly overspend on licenses, not realizing that with a bit of insider knowledge, they could be saving significant amounts. In this guide, we’ll unravel those insider tactics that can help you save efficiently on Jira licenses.

Understanding Jira’s Pricing Model

How Jira Pricing Works

For those new to Jira or anyone looking for a refresher, Jira’s Licensing and pricing is primarily based on:

  • Number of Users: The more users you have, the higher the cost. But, crucially, once you hit certain user thresholds, the cost jumps to the next tier. For instance, a company with 480 users pays the same as one with 100 users, because the next pricing tier only starts at 501 users.
  • Hosting Type: Jira offers three main hosting variants – Server, Data Center, and Cloud. Each has its own pricing structure.

The Hidden Jumps in Costs

Often, the jumps in licensing costs can catch companies off-guard. For example, Jira Data Center’s price starts at $42,000 annually, but jumps to $72,000 if you have just one user over 501. Knowing these thresholds is half the battle.

Tactics to Minimize Jira License Costs

1. Choose the Right Hosting Option

Your first decision point is choosing between Jira Software Server, Data Center, or Cloud. Here’s what you need to know:

  • Jira Software Server: This will only be supported by Atlassian until February 15, 2024. With an average server lifespan of 3-5 years and additional space costs, this might not be the most economical choice for the long run.
  • Jira Software Data Center: This is where you host on your own infrastructure or through a Cloud provider. It demands internal resources and technical expertise.
  • Jira Software Cloud: This is often the most cost-effective for many organizations, offering reduced operational costs, the latest features, and 24/7 support.

2. Monitor User Tiers

With Jira, it’s not just about how many users you have, but which user tier you fall into. Tactics include:

  • Regularly checking how many active users you have.
  • Maintaining a buffer between your active users and the next pricing tier.
  • Deleting or deactivating dormant user accounts, especially those of former employees.

Make the Most of Discounts

Atlassian offers significant discounts for non-profit organizations, educational institutions, and open-source projects. You could save up to 75% off the Cloud subscription if you fall into one of these categories.

Additionally, partnering with Atlassian Solution Partners can lead to exclusive discounts and invaluable advice.

Utilize the Atlassian Cloud Savings Calculator

What is the Atlassian Cloud Savings Calculator?

The Atlassian Cloud Savings Calculator is a tool designed by Atlassian to provide organizations with a clear picture of potential savings when considering a migration from their current hosting method to the Cloud. It’s not just about license costs; the calculator also factors in operational costs, maintenance, and potential downtimes.

How Does it Work?

  1. Input Current Data: Begin by entering your current setup details. This includes the hosting method you’re using (like Server or Data Center), the number of users, and any additional costs like server maintenance, energy costs, and personnel costs for managing the infrastructure.
  2. Review Projections: Once your data is entered, the calculator provides a detailed breakdown of costs associated with your current setup and contrasts it with the projected costs of moving to the Cloud. This includes both immediate and long-term savings.
  3. Visual Representation: The tool often represents the comparison visually, making it easier to grasp the scale of potential savings. For instance, a company using the Server version for 501 users might discover that migrating to the Cloud could lead to savings of $122,802 over a certain period.

Why Should You Use It?

  • Informed Decision Making: While the idea of migrating might seem daunting, having clear, tangible figures can aid in decision-making processes. Knowing the potential savings can provide the financial justification needed to make the switch.
  • Uncover Hidden Costs: Many organizations underestimate the hidden costs associated with maintaining their own servers or data centers. These can include energy bills, space rental, hardware maintenance, and even the man-hours spent on managing and troubleshooting issues. The calculator helps bring these costs to light.
  • Future-Proofing: With Jira Software Server support ending in 2024, the calculator can provide insights into the long-term benefits and savings of migrating sooner rather than later.

Real-World Application

Consider a mid-sized company, ‘TechFlow’, currently running Jira on a Server version with 450 users. Their IT department spends considerable time maintaining the server, ensuring uptime, and addressing any issues. Using the Atlassian Cloud Savings Calculator, TechFlow realizes that not only would they save on licensing costs by moving to the Cloud, but they’d also save on operational costs, reduce the burden on their IT team, and gain access to real-time software maintenance and 24/7 support from Atlassian. Over a span of three years, these savings could be substantial, allowing them to allocate resources to other crucial areas of their business.


Learning how to effectively save on Jira licenses doesn’t have to be a maze. The Atlassian Cloud Savings Calculator isn’t just a tool; it’s a roadmap to smarter, more efficient, and cost-effective Jira usage. By understanding and utilizing it, organizations can make strategic decisions that benefit their operations and their bottom line.

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