When an application link is made from JIRA OnDemand to Bamboo Server the Development panel only 3 Legged OAuth is available.

However when this is configured properly JIRA will show an error in the Development panel, as 2 legged OAuth is needed for the full functionality. However 2 Legged OAuth is not available in OnDemand.

JIRA is having difficulty contacting Atlassian Bamboo. If this condition persists, please contact your JIRA administrators.

The Logs will show the following error with no further information about the error:

TP-Processor6 WARN sysadmin 1053x3357x5 1tl7c0a 46.243.25.78,165.254.226.130 /rest/dev-status/1.0/issue/summary [plugin.devstatus.provider.DefaultCoordinator] Requests failed: Atlassian Bamboo (java.lang.NullPointerException)

This will happen even if the Application Link is properly configured, and the panel at the bottom asking for the login-dance will complete correctly. No Build information will be displayed in the Development Panel however.

Workaround
The Bamboo JIRA plugin can be enabled in JIRA to display the classic Builds Tab, which will properly show linked Builds. However the Development Panel will always show the error message.
Please contact Atlassian Support if the Builds tab is not enabled in your instance.