Nobody (important) wanted that, though. It was done only because the cloud wasn't available, the moment it became available every big company migrated.
Self-hosting JIRA and Confluence was a double edged sword:
Done badly it meant you suffocated the application server with too little resources giving dreaded "super slow JIRA" effect.
Done well it meant you didn't have to deal with Atlassian underprovisioning resources in the cloud or having rigid maintenance times that didn't fit with your company needs.
I’ve never seen or worked with a company using the cloud version of any of their products. I worked at a place with one of the largest bitbucket installs in the world, so they weren’t little shops.
Not true. I‘ve been at several companies that self host Jira. With the amount of critical data and processes in Jira, it can be comforting to have it on-prem with no one else being able to access the server.
Are you sure they're not just "preparing for the migration" and plan to stay on premise? I also worked at many places that had it on premise - all of them planned to migrate ASAP (where asap is sometimes years).
This. Every single Atlassian product I have used has always been painfully slow garbage; and I have been forced to use them at various jobs over a decade.
I don't think it was ever a magically good Australian product that Indian hires from Microsoft suddenly ruined.