In the ever-evolving realm of cloud technology and platform services, few industry experts stand as prominently as Maryanne Baines. With an extensive background in evaluating cloud providers and their product applications across various sectors, her insights are invaluable. Today, we delve into Atlassian’s fresh “maximum quantity billing” initiative—a scheme designed to incentivize increased usage of its products, while also ensuring predictability for its user base.
Can you explain Atlassian’s new “maximum quantity billing” scheme?
Atlassian’s “maximum quantity billing” initiative is particularly interesting because it introduces both incentives and predictability. Essentially, the scheme benefits customers purchasing more of Atlassian’s products by potentially consolidating their spending into a more manageable, predictable expense. While this may favor larger clients significantly, smaller clients might feel left behind if their usage doesn’t justify the transition to this billing model. It’s a balancing act between encouraging growth and maintaining existing customer satisfaction.
Could you clarify how the pro-rating for additional seats works under this new billing model?
Under this model, Atlassian first had an error in their support document, miscalculating costs for adding new seats. They initially set the pro-rated cost of new seats at the full price rather than a reduced rate based on the remaining days in the month. Once corrected, it showed that when a customer adds new seats partway through a month, the costs are pro-rated based on the days these new seats are active.
How has Atlassian corrected its initial error in calculating costs for additional seats?
Atlassian’s correction clarified the confusion, ensuring that the pro-rated cost reflects the actual days of usage. For instance, if you add three additional seats five days into a month, you will be charged based on the remaining portion of the month’s usage rather than the full monthly fee. This adjustment from Atlassian makes the billing more fair and transparent.
What was Atlassian’s reasoning for charging for retired seats for the full month?
The decision to charge for retired seats for the entire month is rooted in flexibility. The company argues that this policy allows customers to reassign seats without facing penalties or billing complexities mid-cycle. Atlassian believes this is in line with standard industry practice and offers predictability and operational ease for their customers.
When is Atlassian planning to roll out the new billing plan?
Atlassian has scheduled the implementation of this new billing plan to begin in July with a staggered rollout, ensuring a smooth transition for its users. They anticipate that by October, all users will be integrated into this updated billing schema. This phased approach should help customers adjust gradually, minimizing potential disruptions.
Which Atlassian products and services are covered under the maximum quantity billing scheme?
This billing scheme covers a wide range of Atlassian products, including Compass, Confluence, Guard, Jira, and several others. Additionally, it’s applicable to apps sold on the Atlassian Marketplace and even to products like Atlassian’s Loom, which already use this billing arrangement. By expanding this plan across various services, Atlassian aims to maintain consistency in their billing practices.
Are there specific goals Atlassian hopes to achieve with this new billing approach?
Atlassian’s primary goal with this billing model is to enhance the overall customer experience, offering a more straightforward, predictable pricing structure. They believe that by reducing the complexities involved in billing, customers can focus more on leveraging their products for productivity, rather than on the nuances of their subscription costs.
As a company, how does Atlassian ensure accuracy in its billing system?
Despite the initial error, Atlassian strives to implement stringent safeguards to prevent such mistakes. While we don’t know the specifics, it’s clear they value transparent communication with their customers. Moving forward, it’s essential for them to increase quality checks and possibly introduce more automated systems to double-check calculation logic.
How is Atlassian addressing concerns or feedback regarding the new billing policy?
Atlassian appears committed to listening to customer feedback, which has been mixed. Some praise the clarity the new model introduces, while others are concerned about potential cost changes. Atlassian seems focused on adjusting their approach as needed, addressing concerns proactively to ensure customer satisfaction remains high.
Do you have any advice for our readers?
For those navigating cloud service billing systems, my advice is to stay informed about terms and changes in subscription models. Don’t hesitate to reach out to service providers with any concerns and make sure to continually assess whether their offerings still meet your organizational needs.
