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Atlassian makes cloud migration a top priority for customers, reflecting the current paradigm: hybrid cloud is the norm for large enterprises. Atlassian is abandoning its cloud-first mantra. The
Atlassian makes cloud migration a top priority for customers, reflecting the current paradigm: hybrid cloud is the norm for large enterprises.
Atlassian is abandoning its cloud-first mantra. The collaboration expert saw the cloud as a boon for collaboration tools such as Jira and Confluence, but now finds that many organizations cannot or do not want to migrate fully to the cloud. While “cloud first” is an option for modern SMEs, not all companies have the ambition to move their entire environment to the cloud in the near future. On the contrary: hybrid environments with partly (multi)cloud and partly in-house management are gradually becoming the norm.
Atlassian has made migrating customers to the cloud a priority in recent years. Now, the company says in its quarterly report that those plans mainly involved smaller customers “who could make the move to the cloud within a day.”
For larger and more complex companies, the cards are shuffled differently. “Our customers with a data center license have more complex and more integrated instances,” they say. “When we shift our focus to these customers, our mindset changes from cloud first to enterprise first.”
Atlassian itself notes that cloud migration for such customers will take years, if that is even their end goal. “You will hear us talk more about enterprise as a top strategic growth priority in the coming years,” says Atlassian.
Large customers should therefore not fear that Atlassian is forcing them to adopt an inadequate cloud strategy. The company is aware that hybrid solutions could be the future for many companies and plans to align its strategy accordingly.
Atlassian points out that companies have their own needs and require their own ways of working. For example, due to the complexity of enterprise customers, the company missed revenue growth by one percentage point (31 percent instead of 21 percent in the quarter). Closing collaboration agreements took longer than planned and required more complex approvals, so no more deals could be considered this quarter.
This complexity is in the DNA of many organizations, from deals and permits to IT infrastructure. Atlassian now plans to embrace this reality.
Source: IT Daily
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