Company shift to per-user pricing means price hikes for many.
Many Fortune 500 companies will probably pay more to use Atlassian software starting next month, but it’s sort of hard to tell given the complexity of the new price model outlined in late June.
While these Atlassian team products—like Jira for tracking bugs and Confluence collaboration software—may not be name brands to non-IT pros, they are a big deal to software developers. And because most companies now build and maintain at least some of their own custom software, this price change is worth noting.
An example: Right now, a team of 26 to 50 people pays $3,000 per year for a cloud version of Jira. Starting July 31, 2017, that same team will be on the hook for $3,500 per year. Under the current plan, once a team hits the 51-user mark, it paid $4,500 per year. Now that bill will be $7,000.
With these changes, Atlassian, which went public two years ago, will offer what tech news site The Register called a “mind-muddling” 17 tiers of annual pricing. It is hardly the only software company to offer a dizzying array of price points. As cynics often point out, there is often money to be made in complexity.
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For those paying on a monthly basis, Atlassian is moving to per-user pricing at least after the first 10 users which can use the product for $10 per month flat fee. But once an 11th person is aboard, the price will jump to $77 per month (at $7 per user per month).
In its post, Atlassian characterized that $10 flat fee for up to ten users as its introductory rate. The company’s Jira Service Desk price will still carry a $10 flat fee covering three agents, the people assigned to handle support tickets. Atlassian also offers versions of all these products that can run on a customer’s own servers.
Atlassian became a bit more familiar to workers outside software development early this year when it announced plans to purchase Trello, a popular workforce collaboration application, for $435 million. There were no price changes listed for that product.
Fortune contacted Atlassian for comment and will update this story as needed.
Note: (July 10, 2017 11:11 a.m. ET) This story was updated to note that the Atlassian blog outlining the price changes posted in late June and that the company also offers on-premises versions of these software product. The prices of those on-site products did not change.