Soaring in the Cloud

As many of you know, Atlassian is committed to making our cloud products our best customer experience. And as you intimately know, no conversation about Atlassian products is complete without our ecosystem. With this in mind, I wanted to take some time to share some of the exciting growth and momentum we’re seeing in cloud, across both our products and our ecosystem.

Customers landing on cloud

Our cloud offerings aren’t new. They’ve been available for a decade and in that time we’ve added more than 125,000 unique cloud customers and over 10 million cloud monthly active users. Over 90% of new customers in Q3 FY20 chose one or more of our cloud products.

Teams at Fugro have been relying on Atlassian cloud products since 2011 to automate and manage the logistics of their work so they can focus on innovating their products and expanding their services, with the ultimate goal of enabling energy companies to temper the risk of devastating accidents and prepare for an uncertain future.

Fugro has more 8,000 users on Atlassian products.

What is new, however, are the choices we now offer customers with cloud plans designed to meet the needs of a variety of customer use cases - free, standard, premium, and soon enterprise. Since launching our new cloud free plans, sign-ups have increased approximately 125% in recent weeks. Now that we’ve opened up to the top of the funnel to bring new customers in, our priority will be to convert them into paying customers. We’re actively running upsell motions and evaluating how apps may be a critical lever for monetization.

Customers migrating to cloud

Server and Data Center to cloud migrations are up 60% YoY with organizations large and small making the switch. Over the past 6 months more than 10,000 server starter tier customers have activated a free cloud license; we expect to continue to see momentum from this segment of our base now that we’ve eliminated cost as a barrier to cloud.

We’re not only seeing smaller sized customers migrating, but larger companies as well. Like Homegate, a Swiss real estate company, who is experiencing positive ROI on their move to cloud. Homegate uses at least four cloud apps across their Atlassian portfolio: Issue Checklist Free, Simple Cloud Files Jira, draw.io, and Queues for Jira Service Desk.

Since completing the server-to-cloud migration with beecom’s support, Homegate AG has reduced costs by 15 percent, optimized user access and onboarding, and gained more time and energy to focus on innovation.

As well as Redfin, who recently migrated from Data Center to Cloud Premium.

Since going agile and implementing Atlassian cloud with the help of Atlassian’s migration services, the company has not only captured $60,000 in immediate savings, but also freed up valuable engineering time – once spent maintaining servers – to increase their speed to market.

While we only recently announced our newest cloud offering, Enterprise Cloud, many large organizations were already realizing the benefits of Atlassian’s cloud products and platform to power their collaboration and productivity needs. In fact, 80% of Fortune 500 companies have an Atlassian Cloud license.

Thank you to the following partners who have been instrumental in helping us define the scope of work required to include Marketplace apps as part of this launch. This partnership allows us to more confidently bring customers a complete enterprise cloud solution.

Ecosystem cloud growth

Since at least 60% of Atlassian customers use an app or integration from the Marketplace, we should expect to see them grow alongside our core products. In fact, Q3 FY20 was the highest quarter for cloud app evaluations to-date. Overall cloud app installs are up 60% YoY, driven primarily by our new cloud free plan.

To accelerate this demand, the Atlassian Ecosystem Marketing team recently launched a customer-focused campaign to drive greater awareness of Marketplace apps for various team types. While this is a top of funnel campaign, we do expect to see a long tail lift on installs, evaluations, and purchases of apps. Find out more about the campaign and how you can get involved here.

On the supply side, Q3 FY20 was one of our strongest quarters for cloud app listings. A whopping 117 cloud apps were added to Marketplace; that’s 2 apps every business day! Check out our customer community recap here. Thank you to each of our partners who worked tirelessly to ship a new cloud this past quarter. The value these apps brings not only new customers, but those looking to make the switch to cloud (many of whom have told us that a lack of cloud app availability has been prohibiting them from migration) cannot be overstated.

Codegeist is back

Codegeist, Atlassian’s a developer-focused hackathon, is back this year and bigger than ever. Codegeist 2020 is the largest app developer contest we’ve run, featuring more than $300,000 in prizes. Stay tuned for more details coming in the next couple of weeks!

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