It's not. We've just received a new project which forced us to redo our whole company IT and go back to Selfhosted Solutions in a ISO 27001 Datacenter. (luckily the company that datacenter belongs to is in our building and provides our internet, so we have direct network access to the servers)
Atlassian is so successful in a big part due to their self-hosting option.
I agree, we self host Jira and Confluence for all our sensitive stuff. We'd love to self host our HipChat but the price is just a bit rich right now, so we make sure the teams don't post sensitive stuff there.
Atlassian is so successful in a big part due to their self-hosting option.