Atlassian tools still offer on-prem, but you need a data center license now and they doubled the price of that. Unfortunate, but they'd be losing some huge customers that cannot run in the cloud not just as a matter of policy but technology. The entire IC developer platform is using the Atlassian suite, for instance, but on JWICS, a classified network with no connectivity to Atlassian's cloud.

What's going to end up happening if more vendors decide you can only use their service from their cloud is the largest enterprises and governments are going to exclusively use Microsoft and AWS since they're more than willing to just build you your own cloud that meets whatever security and disconnection requirements you have, no matter how stringent. Already no new government projects that still have a choice are going with Atlassian tooling.

We'll see how it goes for them, I guess. Maybe they don't need governments and Fortune 500s and can get by selling exclusively to startups with no real security or lock-in avoidance requirements.