# Atlassian Hosting: Atlassian Cloud vs. Data Center on AWS or Azure > Atlassian Cloud or Data Center hosting on AWS or Azure: a direct comparison of scalability, security, reliability and cost. Source: https://www.xalt.de/en/blog/atlassian-cloud-vs-data-center-on-aws-or-azure/ TEAM XALT Atlassian Platinum Partner · 5 April 2021 · 7 min The cloud is omnipresent, and new apps are released daily that can be used directly, on-demand and natively on the web. However, this is not always what companies want. There are often security concerns on the part of IT administrators or a lack of flexibility in cloud apps. Atlassian has also decided to migrate its two popular apps, Jira, Confluence, Bitbucket and others to the cloud. As a result, both apps are still offered as a Data Center variant. This raises the question of which solution is best for your business: Atlassian Cloud or hosting on AWS or Azure? ## Atlassian Software Stack on AWS or Azure Cloud solutions on AWS are particularly popular in the enterprise sector. This is not only because you can scale your cloud with AWS as you wish and thus remain flexible. But also due to factors such as performance and availability. Furthermore, on AWS or Azure you have the option to host your own apps in addition to the Atlassian software products. ### Benefits of Atlassian hosting on AWS or Azure #### Scalability and flexibility Similar to the native Atlassian Cloud, Atlassian Data Center solutions grow with your business. However, there are some advantages to note: - **Horizontal scalability** by adding further hardware or upgrades via AWS / Azure - **No user limit**: Even 5,000 or 10,000 and more users are possible with Data Center on AWS or Azure - **No downtime**: Upgrades happen in the background and result in no downtime for your Atlassian software instances. #### Security with hosting on AWS or Azure IT security is ensured through additional measures by your hosting partner and your IT department. These include: - **Secure authentication protocols and advanced auditing**. - SAML SSO 2.0 integration: Secure your web access with an additional layer of protection. - [**AWS / Azure security measures**](https://aws.amazon.com/de/security/): Additional encryption layers, for example for cross-region VPC peering traffic and customer- or service-to-service TLS connections - **Full admin and database access** - **Data centre location selection**: Ensure that your data is stored in your preferred region. #### Reliability and stability - Access to your systems is guaranteed in the event of a server failure through the operation of geographically separated data centres. - System access even during server failure: Geographically separated data centres provide enhanced reliability in the event of server failures - Integrated disaster recovery: Restore your systems easily and minimise downtime #### Infrastructure and operations - Custom domain name (DNS): Connect your own web domain to your Atlassian software solutions. - Outsourcing of operations: Contact an external partner for the management and maintenance of your hosting infrastructure #### Integration and plugins - High availability of plugins: Most Atlassian Marketplace partners already make their plugins available (approx. 3,000). - Atlassian API: Development of applications, customisations and integrations is possible. ### Who is Data Center hosting suitable for? Jira or Confluence Data Center on AWS or Azure is primarily suitable for larger teams with 500 users or more who require flexibility in their infrastructure. Due to the wide variety of available apps, you should also expect some minor disruptions when scaling instances. Additionally, Data Center is suitable for companies that need an extra layer of security and want full control over their infrastructure. [Managed Atlassian hosting: simplify running Confluence, Jira and Bitbucket](https://www.xalt.de/en/hosting-and-operations-for-atlassian-applications/) ### Disadvantages of Atlassian on AWS or Azure Despite some advantages, Atlassian Data Center on AWS also faces several disadvantages: - High costs for operating and setting up the server infrastructure. - Especially unsuitable for smaller teams and quickly leads to high costs due to a higher user tier. - Operating costs increase due to the deployment of multiple infrastructure components. - Increased administrative effort due to a more complex infrastructure. - Not all apps from Marketplace providers are yet available for Data Center. ## Hosting on Atlassian Cloud - Jira and Confluence Furthermore, Jira and Confluence are available directly from Atlassian as SaaS (Software as a Service) and are hosted directly by Atlassian. This allows any company to be integrated quickly and without detours. If you have previously used a Server Data Center license, Atlassian additionally offers [free tools](https://marketplace.atlassian.com/search?query=cloud%20migration) to migrate your Jira or Confluence data to the Atlassian Cloud. Jira and Confluence hosted by Atlassian are available for free for small teams of up to 10 users and already offer a sufficient range of features. ### Advantages of the Atlassian Cloud #### Scalability: Jira and Confluence grow with your company A major advantage of the Atlassian Cloud is that both apps grow with your company. This means that the more users you need for the software, the more expensive it becomes. However, this allows you to keep a close eye on your costs and react to changes in your company at any time. Additionally, there is currently a user limit of 35,000. #### Security of the Atlassian Cloud As already mentioned, a critical factor is the security of cloud solutions. After all, sensitive company data should only be viewable by your employees. For this reason, the Atlassian Cloud offers several security measures: - **Create permissions for your users**: Use the integrated role function to control access permissions. - **SSL, SSO**: The cloud is secured and encrypted using TLS or SSL and can be further secured by connecting to a SAML single sign-on provider. - **Server location selection**: To achieve GDPR and EU GDPR compliance and know the exact location of your data, it is possible to choose the server location. - **Password policies**: Define the requirements that your users' passwords must meet. #### Reliability and stability Your team needs uninterrupted access to your instances in the Atlassian software in the cloud. - **Cloud availability**: Depending on the level of development, an availability of up to **99.5%** can be achieved. - **Updates**: All updates are automatically applied as soon as they are available. This prevents any downtime. - **Disaster recovery**: Backups are created every 24 hours and retained for 7 days to be prepared for the worst-case scenario. - **Secure recovery procedures**: Should something go wrong, there are controlled options for data recovery. #### Infrastructure and operations - **Low effort** and operating costs due to the management of the cloud by Atlassian. - **Functionality** is always up to date. You always receive the latest features and do not need to perform independent updates. #### Integrations and plugins The Atlassian Cloud is constantly being expanded. So is the availability of Marketplace apps. - Currently, **approximately 1000 apps** are available in the cloud, and more are added daily. - Not all apps from well-known providers are yet available in the cloud. [What does the Atlassian Cloud cost your company?](https://www.xalt.de/en/atlassian-cloud-migration-from-server-and-data-center/) ### Disadvantages of the Atlassian Cloud Despite its unbeatable advantages, there are several factors to consider when using the Atlassian Cloud that can pose challenges for businesses. - **Number of users**: Without an Enterprise solution, the number of users is limited to 1,000. This means the Cloud may not be an option for large enterprises. - **Restricted admin access**: With the Atlassian Cloud, your IT department does not have direct access to the database. - **Locked into Atlassian Cloud**: You are not given the choice of cloud provider. - **Plugins and integrations**: Currently, only a limited number of apps are available in the Marketplace. ### Who is the Atlassian Cloud suitable for? The Atlassian Cloud is primarily suitable for smaller teams or startups that want to have the necessary flexibility for their Jira or Confluence instances and an on-demand system readily available. In any case, you have a strong partner by your side for migrating to the cloud (Data Center or Atlassian Cloud), who advises you on all relevant questions regarding requirements and issues. You need a strong partner by your side to support you with all questions about migrating to the cloud? [Here you will find](https://www.xalt.de/en/cloud-services/) more information about migrating to the cloud and what a switch from Server to Data Center looks like exactly. ## Not sure which Atlassian hosting fits you? We'll advise you independently on Atlassian Cloud and Data Center on AWS or Azure – and find the right solution for your company. [Talk to us](https://www.xalt.de/en/contact/) ## More articles ### [Personal AI Agents Compared: Rovo, OpenClaw, and Agent SDKs Like Claude or OpenAI](https://www.xalt.de/en/blog/personal-ai-agents-compared-rovo-openclaw-and-agent-sdks/) Rovo, OpenClaw, or Claude/OpenAI: how personal AI agents differ in 2026 and which approach fits your team. *Atlassian* ### [BaFin Compliance for Atlassian Cloud – What Financial Institutions Need to Know Now](https://www.xalt.de/en/blog/bafin-compliance-atlassian-cloud-migration/) New EU FSA rules have been in effect for Atlassian Cloud in financial services since December 2024. We show what has changed and how you can migrate to the cloud in a BaFin-compliant way. *Atlassian* ### [Atlassian Team '26 Recap: The Shift to the AI-Native Organization and the Role of the Teamwork Graph](https://www.xalt.de/en/blog/atlassian-team-26-recap-teamwork-graph/) XALT was on the ground at Atlassian Team '26 in Anaheim. Our recap covers the Teamwork Graph, Rovo, and the new Teamwork, Service, Product, Software, and Strategy Collections – and what it means for enterprises in Germany. *Atlassian* --- *This version is for AI agents. Every page of this site is available as Markdown: append `index.md` to its path. Index of all pages: [llms.txt](https://www.xalt.de/llms.txt)*