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Comment by jillesvangurp

On premise is apparently not big enough as a market for Atlassian. This does not surprise me: it needs a lot of hand holding; and saas gets you revenue much cheaper because you get economies of scale and much less support headaches. On top of that people get stuck on old versions of your product, which you then need to support as well because they payed you a premium for it. With SAAS you just have one version to worry about: the current one. So I don't expect Slack will be very eager to do on premise installations any time soon. The whole point of Slack is not doing that. In the same way, on site salesforce installations are not a thing, or on site Google docs. Even MS is moving away from on premise with office 365. Seat based, annual license revenue is a nice thing too for them.

Those who really want to do on premise, will find their way to one of several niche products in this space. But I don't think any of these players will grab a lot of market share. Ultimately anything run on site is going to be expensive to support and why bother when you get cloud based offerings. Compliance issues can be addressed in the cloud as well.

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