As organizations continue to explore the benefits of cloud migration, many still encounter significant obstacles preventing a full transition to Atlassian Cloud. While Atlassian Cloud offers scalability, flexibility, and enhanced collaboration features, certain blockers—primarily related to security and compliance—remain in place. These blockers can make it challenging for organizations to migrate their data and workflows seamlessly. This article outlines the primary blockers to Atlassian Cloud adoption in 2025 and provides insight into when these barriers might be addressed.
Atlassian Cloud vs. Data Center
Atlassian Cloud and Data Center provide different hosting solutions tailored to organizational needs. While Cloud is designed for ease of use, automatic updates, and lower infrastructure management, Data Center remains a preferred option for enterprises requiring extensive customization, data residency control, and compliance with strict regulatory standards.
Companies that operate in highly regulated industries or manage sensitive information may find that the Data Center continues to meet their needs more effectively. However, Atlassian has been expanding its Cloud compliance capabilities, making it important for organizations to stay informed about upcoming changes to determine whether Cloud will soon meet their requirements.
Choosing between Atlassian Cloud and Data Center depends on your organization’s needs in terms of product availability, security, compliance, scalability, maintenance, and cost structure. For instance, your organization may opt for Atlassian Cloud, as it provides a broader range of products — such as Jira Product Discovery, Statuspage, and Halp — compared to what is available in the Data Center.
Cloud (Software as a Service – SaaS)
Atlassian Cloud is an always-on, continuously updated, and highly secure service that eliminates the need for manual maintenance. Built on best-in-class cloud technologies, Cloud provides:
- Built-in security, privacy, compliance, and reliability
- Reduced operational, IT maintenance, and hardware costs
- Continuous feature updates and faster innovation
- Flexible pricing plans (Free, Standard, Premium, Enterprise)
- Seamless integrations with third-party SaaS tools and Atlassian products
When to Choose Cloud:
- You want to eliminate manual software upgrades and maintenance
- You require real-time security updates with 24/7 monitoring
- You need globally accessible tools without requiring VPN access
- You aim to enhance business agility and digital transformation
Data Center (Self-Managed Deployment)
Atlassian Data Center is a self-managed solution that allows you to host Atlassian products on your own infrastructure or through cloud providers like AWS and Azure. This is ideal for organizations with strict regulatory requirements or internal hosting mandates.
Key Features:
- Greater administrative control over security, compliance, and data residency
- Flexible deployment options (single-node or clustered)
- Self-managed upgrades and maintenance
- Optimized performance for large-scale enterprises
- Data cleanup features for migration planning
When to Choose Data Center:
- Your industry requires compliance with regulations that are not yet supported in Cloud
- You must keep product data within your own infrastructure
- You need more customization, control, and dedicated resources
Security & Compliance: Cloud vs. Data Center
Atlassian Cloud:
- Data Encryption: Managed encryption in transit and at rest
- Data Residency: Available in 11 countries across paid plans
- Audit Logging: Organization-wide via Atlassian Guard
- Advanced Security: API token controls, mobile device management
- Compliance Standards: Supports GDPR, PCI DSS, SOC 2 Type II, ISO/IEC 27001, HIPAA-ready
Atlassian Data Center:
- Data Encryption: Managed by your organization
- Data Residency: Fully controlled by your organization
- Audit Logging: Product-level logging only
- Advanced Security: Managed by your organization
- Compliance Standards: Compliance is organization’s responsibility
Performance & Availability: Cloud vs. Data Center
Atlassian Cloud:
- High Availability: 99.9% uptime SLA (Premium)
- Scalability: Elastic scaling, multi-level redundancy
- Disaster Recovery: Handled by Atlassian
- Data Storage Limits: Up to unlimited (Enterprise)
- Performance Optimization: Continuous improvements
Atlassian Data Center:
- High Availability: Requires dedicated HA deployment
- Scalability: Requires infrastructure scaling
- Disaster Recovery: Managed by organization
- Data Storage Limits: Managed by organization
- Performance Optimization: Custom optimization required
Cost Considerations: Cloud vs. Data Center
Atlassian Cloud:
- Pricing Model: Per-user or tiered subscription
- Total Cost of Ownership (TCO): Lower (no hardware or IT maintenance costs)
- Billing: Monthly or annual
- Support: Varies by plan (Free to Enterprise Support)
Atlassian Data Center:
- Pricing Model: Tiered pricing, annual commitment
- Total Cost of Ownership (TCO): Higher (includes hardware, IT staffing, infrastructure costs)
- Billing: Annual only
- Support: Priority or Premier Support (separate purchase)
For most organizations, Cloud is the recommended choice due to its lower maintenance burden, built-in security, and continuous feature updates. However, Data Center remains a strong option for enterprises requiring strict data control, compliance with regulations, or extensive customization.
Cloud Blockers
Your Product Must Comply with a Regulatory Standard That’s Not on Our Cloud Roadmap
One of the most common blockers for cloud migration is compliance with specific regulatory standards. Organizations in industries such as finance, healthcare, and government are required to adhere to strict data governance and security frameworks. Some regulatory standards are not yet supported in Atlassian Cloud, preventing companies from making the switch.
For example, if your business requires compliance with regulations like FedRAMP, HIPAA, or specific regional data protection laws, you may need to remain in the Data Center until these standards are fully supported in the Cloud environment.
Your Product Data Is Mandated to Remain in a Self-Managed Environment
Certain organizations are legally required to keep their product data within a self-managed environment due to industry-specific regulations or internal policies. This is particularly common in government agencies, financial institutions, and companies handling classified information.
While Atlassian has introduced enhanced data residency controls, some companies still find that Cloud does not meet their strict on-premise data security requirements. Until further advancements in data residency and encryption options become available, these organizations may need to continue using Atlassian Data Center.
Cloud Roadmap
Despite these blockers, Atlassian is actively working to address compliance and security concerns within its Cloud platform. Many regulatory standards are scheduled for implementation in upcoming updates. To stay informed on when specific compliance features will be released, organizations can refer to Atlassian’s Cloud Roadmap:
- Atlassian Cloud Compliance Roadmap (Source: Atlassian)
By keeping track of Atlassian’s roadmap, organizations can plan for future migration opportunities once their compliance requirements are met. Additionally, it is also important to know that there are tools available to assist in the migration process.
Get Started with Cloud Migration
Navigating cloud migration challenges can be complex, especially when dealing with compliance and security concerns. If your organization is facing blockers to moving to Atlassian Cloud, Seibert Solutions can help assess your needs and develop a strategic migration plan. Get in touch with Seibert to help your organization get started with your cloud migration.