Atlassians push to the cloud is complicated by the recession and its impact on customers
Summary
Cloud today represents less than half of Atlassians total revenue, a figure the company wants to push to 90% or higher. The companys cloud services have a lower gross margin than on-premises products, partly because Atlassian pays hosting fees to AWS. While that may not be great for Atlassians financials in the short-term, it means lower operating costs in part by cutting back server expenses. "Customers do not want to be in the business of downloading software, putting it on an operating system, keeping both of them up to date," Farquhar said. " Atlassian shares are up 43% this year, benefiting alongside other subscription software companies like Zoom and Slack, because its products have assumed greater importance with developers working remotely during the pandemic.
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