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Why Co-Terming Atlassian Licenses is Important

June 2, 2023

Do you find yourself renewing your Atlassian licenses every month? Or worse, have you had users who can’t connect to Jira or Confluence because you have too many licenses to manage and their expiration dates slipped through the cracks? 

Whether you are a small start-up or a Fortune 500 company, managing Atlassian licenses can be complex and time-consuming. In addition to navigating licensing terms and conditions, you also need to stay up-to-date with the latest software versions and execute an asset management strategy for your software. It’s a lot to keep up with, especially as your organization grows.

The many challenges of Atlassian license management can be easily addressed by co-terming your licenses. Co-terming your license end dates saves you time and money during procurement cycles and allows you to budget better.  

In this article, we take a look at what co-terming is and how it helps your organization simplify the licensing management lifecycle.

What is co-terming?

Co-terming licenses readjusts the expiration date of the support term to align to one renewal date. Co-terming streamlines the management of multiple licenses and prevents the above-mentioned situation, where your users can’t access their Atlassian tools due to expired licenses. 

How is co-terming beneficial?

Co-terming all your licenses will result in an annual renewal cycle, which helps with budget planning and reduces procurement cycles. Not only does co-terming your Atlassian licenses facilitate the renewal process, but it also makes for easier tracking and management. 

Additionally, purchasing a single renewal for all your tools allows you to negotiate a better deal with a license vendor. If you have a variety of end dates, it is best to co-term everything at once, allowing some licenses to be renewed for less than 12 months. Any new license purchased throughout the year can be co-termed (as long as the term is for 12 months or more). 

What licenses can be co-termed?

  • Atlassian Data Center: All Atlassian Data Center licenses can be co-termed when purchasing new add-ons, upgrades, or at renewal.
  • Services (Premier Support & TAM): If you use Atlassian's services, the service term can be co-termed to align with your other licenses.
  • Atlassian Cloud (Annual contracts): By design, Atlassian's cloud is automatically co-termed. Once the cloud environment is created, any license changes to the current environment (new purchases, upgrades) will be pro-rated to the cloud end date.

When should I co-term licenses?

If keeping track of your renewal cycles is taking up too much time, you should consider co-terming. Once a co-term date is determined, all new purchases, upgrades, and renewals will be on the same date moving forward.

How do I decide on a co-term date?

Some end users already have a date in mind, or you choose to align with a fiscal year-end. If you don't have a specific date, you can determine one after analyzing your list of Atlassian licenses. 

How do I get started with co-terming?

The more your company grows, the more complex your licensing landscape gets. Keeping track of your Atlassian licenses while also evaluating business priorities gets complicated. This is where an experienced Atlassian Solution Partner can step in and take licensing management off your plate so you can focus on the work that matters most

As one of the fastest-growing Atlassian partners, Praecipio makes your software administration stress-free.  From purchasing to renewals, we simplify the entire licensing management lifecycle of your Atlassian products to help your organization reduce overhead, save time and money, and budget for the future.

Contact us and our team of experts will evaluate your Atlassian license footprint and help you manage your licenses in a way that aligns with your growing business.

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