# Plugin Costs After Migrating to the Atlassian Cloud

> How plugin costs for Jira and Confluence change after migrating to the Atlassian Cloud: licensing models, billing cycles, and tips for cost planning.

Source: https://www.xalt.de/en/blog/plugin-costs-after-migrating-to-atlassian-cloud/

TEAM XALT Atlassian Platinum Partner · 15 October 2024 · 6 min

The switch from Atlassian Server or Data Center to the Cloud brings many changes with it – particularly with regard to the cost structure of your plugins. A frequently asked question is: How do the plugin costs for our Jira or Confluence change after the [Atlassian Cloud Migration](https://www.xalt.de/en/blog/atlassian-cloud-migration-from-server-and-data-center-to-the-cloud/)?

## Different licensing models

A key difference between on-premises and cloud solutions lies in the licensing model. While server or data centre versions often incur a one-time licence fee based on a fixed user tier, the cloud operates on a subscription model. This means you pay regularly – monthly or annually – for the use of the software and its associated apps.

## Billing for cloud apps

### How are cloud apps billed?

Cloud apps from the [Atlassian Marketplace](https://marketplace.atlassian.com/) are billed based on the number of users of your Atlassian product. For example, if you use Confluence Cloud with 100 users, you pay the price for 100 users for each installed app.

### Billing cycle

The billing cycle of the apps must match that of the main product. For example, if your Jira Cloud subscription is billed monthly, all installed apps are also billed monthly. Monthly billing offers the advantage of planned scalability; if your site has more or fewer users in a given month than in the previous month, the app costs increase or decrease accordingly.

### Specific example for Jira Cloud apps

For Jira Cloud apps, pricing is based on the maximum number of users of the Jira products on your site. For example, if you have Jira Software with 500 users on-premises (Data Center), you pay an annual fee for each extension, even if you do not have 500 active users.

In the cloud, you can also pay an annual fee for the apps, but only if Jira Cloud is also billed annually. With monthly billing in the cloud, you pay for the app per active user, allowing you to save costs. This flexibility is not available for Data Center versions, where payment must always be made annually.

### Who can buy and install apps?

To maintain control over the Atlassian environment, most Marketplace apps can only be installed by site or organisation administrators. End users can search for apps in the Marketplace and inform their administrators about desired extensions by selecting “Free trial” \> “Request this app” on the app page.

### Tips for planning plugin costs in the Atlassian Cloud

- Consider total costs: In addition to the licence costs for the apps, you should also consider savings from reduced maintenance effort and eliminated infrastructure costs.
- Understand user-based pricing: Since app costs are based on the number of users, you can control your spending by adjusting user licences.
- Review alternative solutions: The cloud versions of Atlassian products often offer features that were previously only available through additional plugins. This can help you avoid certain apps and save costs.
- Contact providers: Some app providers offer special migration offers or discounts for existing customers. It is worth asking directly.

### Long-term perspective

Although the monthly or annual plugin costs in the cloud may appear higher at first glance, you benefit from:

- Automatic updates: You always receive the latest (security) updates without any additional effort.
- Reduced maintenance effort: No own servers and less administrative work.
- Scalability: Flexibly adjust the number of users and apps to your needs.

These benefits can lead to long-term savings that offset or even exceed the higher licence costs.

**Do you need an assessment of the costs that will arise for you when migrating to the Atlassian Cloud?**

Speak to our Atlassian Cloud experts

[**Migrate now**](https://www.xalt.de/en/contact/)

## Conclusion: Change in Atlassian plugin costs

Migrating to the cloud significantly changes the cost structure of your plugins. With the user-based billing model and regular billing cycles, you receive a transparent and predictable cost overview. It is important to incorporate these changes into your budget planning early on and make any necessary adjustments to accurately assess the plugin costs.

## Unsure what your apps will cost in the cloud?

We calculate your plugin costs before the migration and find ways to avoid unnecessary spend.

[Talk to us](https://www.xalt.de/en/contact/)

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