We’re excited to announce that as of April 16, 2020 (US), 2 Year Annual Cloud Pricing is available for Atlassian cloud customers!
Previously, cloud customers were limited to purchasing and renewing annual plans in intervals of one year. This is a sticking point for many of our large customers who want to purchase multi-year subscriptions in advance, and on a single transaction, to better manage their budgets.
Allowing for multi-year payment brings flexibility to our customers’ payment term options and mitigates long-term pricing risk when it comes to budgeting. This also brings our cloud offering in line with our Server and Data Center business, making our offerings simpler to evaluate and surfacing multiple options that suit their organizations’ needs.
What does this mean for customers?
The 2 year subscription option will be available to all Atlassian customers (both new and existing) as of April 16, 2020 (US).
New customers - Opting in to a 2 year subscription will be available self-service, on the Atlassian admin hub (see above screenshot).
Existing customers on monthly plans - Existing customers who are on a monthly billing plan will be able to opt-in to 2 year annual subscriptions on the Atlassian admin hub (see above screenshot).
Existing customers on annual plans - Existing customers who are on an annual billing plan will need to contact our Customer Advocate team to switch their payment terms.
- Customers will not be able to subscribe to more than 2 years.
- Renewals by default will return to a 1 year subscription. If customers want to extend their renewal for another 2 years, they will need to contact our Customer Advocate team.
What does this mean for Marketplace Partners?
We’re excited to bring this pricing flexibility to the entire ecosystem of our customers’ tools. All PVA (paid via Atlassian) cloud apps that a customer decides to purchase will also be applied to the 2 year annual pricing contract should a customer choose such.
For customers who purchase annual subscriptions of Marketplace apps, the existing pricing structure will remain the same, locked in for the next 2 years. No additional discount will be applied outside of the annual discount:
- 1 Year Annual Price = 10*(monthly price @ user tier)
- 2 Year Annual Price = 10*(monthly price @ user tier) x 2
At this time, all payment and billing mechanisms should behave the same way as they do today. We will let you know should something else change.
|Why are the multi-year quotes limited to two-years?||We want to keep the procurement options consistent across our Server, Data Center, and cloud offerings. We may consider increasing the maximum term to 3 years in the future though, based on customer demand.|
|What is the payment / billing cycle expected for the two-year plan?||Customers will be billed up front for the duration of their contract (2 years).|
|What is the duration for which this two-year Annual Cloud pricing offer is available? Or is it a permanent option added to the pricing plans going forward?||This is a permanent pricing option available going forward.|
|Can customers upgrade their tier mid-contract?||Yes, there is no change to the upgrade process that exists today. If a customer wants to upgrade their tier before their renewal date, they can reach out to our Customer Advocate team.|
|Which products are available for two-year cloud contracts?||All cloud products and services that are currently eligible for one-year cloud annual subscriptions (Jira Software, Jira Core, Jira Service Desk, and Confluence).|
|Which apps are available for two-year cloud contracts?||All cloud apps that are paid via Atlassian are eligible for two-year cloud subscriptions.|
|What about apps that are PVV (paid via vendor)?||This does not impact apps that are PVV.|
|How will the remittances be sent out to Marketplace Partners?||Remittances will be paid as one lump sum after the customer purchases the two-year subscription.|
|How will this show up on my monthly invoice from Atlassian?||Each year of the annual subscription will show up as a separate line item.|
If you have any questions, reply in thread to this post and we will answer them for you!