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Mahmood Belozerov
Mahmood Belozerov

Atlassian’s Two-year Cloud Journey



This is Cameron, and I'll take that one. So as you know, this migration journey has been going on for a couple of years now. We announced the server end of life, over 18 months ago and gave customers more than three years heads up, to make a decision on migrating to the cloud. So none of this is a surprise.




Atlassian’s two-year cloud journey


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Gotcha. I think I can address that. So overall data center demand, I'll hit that first and then we can talk about the server to cloud or data center to cloud journey. So as we've already mentioned this server end-of-life message we give customers more than three years, heads up.


However, when those customers jump the data center and we see this again and again, they're seeing that as just a stepping stone to that cloud journey. But it gives them more optionality down the time and of course data center is a fantastic product. So we've historically said, it's roughly 30% of our cloud migrations come from data center customers, which proves that stepping stone statement. And I don't, specifically know how much that drives into the overall 10% growth that we've shown that drives our overall cost growth but you can see roughly a third of our customers are coming from data center.


They have been a data center customer for many years. And we've been speaking about the cloud opportunity and journey with them for quite some time. But it shows, I think, you nailed it right there, its German bank highly regulated, massive scale like you name it from a requirements perspective they had it for our cloud. And it's a testament to the investments we've made over the last couple of years and performance and scale in regulated things like band fees, specific financial services regulation requirements in Germany that allowed us to open up that door and have that serious conversation about getting them to the cloud.


To answer your question no, we have just started the cloud journey. We've largely -- they checked all the boxes to get them to adopt our cloud and we've started our migration planning so just begin moving their users and data. And that will be a multi-month or multi-quarter journey the size of deployment and complexity that they have, as well as how mission-critical applications are for the bank. I mean they literally are running on us every single day.


There's a few things I would point to there. So a reminder for anyone listening. With a single instance of Jira Software in the case that you mentioned there we started our cloud journey at about, I think 1,000 or 2,000 seat range. We expanded to five then to 10.


In addition to that, we do publish all of our future-looking roadmap in this area, up on our public cloud roadmap. And that gives just increasing confidence for our customers, so that they can plan ahead, as well as engage with our teams on when they should actually start their migration journey. And that's been a critical part of our overall conversation going forward. So we've done in the last just 12 months, HIPAA, Banfi, we have all of our SOI compliance and we continue to have additional requirements across the board, and we are continuing to our work on FedRAMP.


Side-by-Side Feature Comparison of Cloud, Server and Data Center: Comparison between Server and Cloud: -atlassian-cloud-vs-server-744721664.htmlComparison between Server and Data Center: -software/server-vs-data-center-whats-right


"All that said, migrating our server customers is a multi-year journey, with much of it still ahead of us. To help smooth the way, we consolidated all our migration content in our updated Atlassian migration centre this quarter. This hub serves as customers' one-stop shop, providing clear steps for progressing through each phase. Our original migration centre generated thousands of cloud migration trials in FY21, and we're excited to watch the updated version build on that success."


"While our cloud migration progress is tracking to plan, we continue to believe we have a multiyear migration journey ahead of us. As a result, we continue to expect variability in our revenue growth as customers choose the timing of when to migrate to our cloud or data centre offerings. We believe this variability will be transitory as we work through our cloud-first transformation," the company said.


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