Atlassian Makes Significant Moves into the Enterprise Market

I have covered Atlassian several times on the AppGap blog (see for example – Atlassian Implementing OpenSocial within Enterprise Applications). Recently I spoke with Atlassian’s Matt Hodges, Confluence Product Marketing Manager, and Bill Arconati, Confluence Product Manager to catch up on their latest moves. We covered several topics, beginning with their increased support for large enterprises.

Matt said that with the release of JIRA 5.0 they have launched a multi-pronged effort to expand their support for the increasing number of enterprises that are adopting Altassian products on a larger scale.  First, there is now a dedicated 24/7 telephone support team to address enterprise issues.

Matt Hodges, Confluence Group Product Marketing Manager, Atlassian

This is a great move that I wish more software providers offered.  Also, included with your Enterprise Atlassian JIRA license, there is free administrator training that focuses on how to handle large instances. An Enterprise-customer-only online-support community is also now in place with quarterly input and support meetings. In addition, there are developers on the Atlassian product teams that focus only on ”Enterprise” issues. They are addressing issues like scalability (for both users and content), as well as performance.

While this increased enterprise effort started with JIRA, plans are in place to also address Enterprise-level issues with Confluence. One move to make Confluence more accessible for enterprise users was the rebuilding of the editor that was launched with Confluence 4.0, making it easier for the non-technical user. There continues to be focused ongoing improvements in this area. I can attest to this as I have been using Confluence a lot recently and I find it quite intuitive.

See screen and explanations below.

Bill pointed out that Confluence has always been aimed at the enterprise and the business user since it first started in 2004. That was one of its distinguishing features versus the open source wikis available at the time.

Bill Arconati, Confluence Group Product Manager, Atlassian

This focus has driven usage by an ever-increasing number of business users in large organizations. Logically, they have now added new layers of support and product development to accommodate them.

We next talked about adoption. Matt said that Atlassian focuses on tools for teams that build products. Its initial clients were in IT and product development groups.  But product development goes beyond IT to such areas as marketing and support, which of course subsequently expose Confluence to larger numbers of users.

Atlassian continues to add features to increase adoption by these newer audiences. The complete rebuilding of the editor is one example. Bill added that they have continued to make the design intuitive and also provide more on-boarding support. Among much others, Atlassian are working on a new solution for providing templates out-of-the-box, including business process ones to help new users see value faster.

I asked about Atlassian’s expanding customer base, as their list is quite impressive. They said from the beginning the business model has been bottoms-up adoption. They have made the product and the price points attractive to teams so that senior executive budget approvals are not required. Then the product spreads through the organizations as people find that it is easy to use and it helps them get their jobs done better.

Atlassian has focused on what their users tell them, rather than what analysts prescribe. This has been very successful. For example, when someone moves to a new role or a new job, they take Confluence with them.

I think this bottoms-up approach to sales is even more relevant today in the world of BYOD and self-provisioning, as users no longer rely completely on IT to furnish apps – users are taking matters into their own hands.

One important move for Atlassian in this direction was the release of their software as a service (SaaS) offering – an on-demand version of Confluence. Users can more easily self-provision and you can also start with a 30-day free trial of the on-demand version.

This combination of On-Demand and instant trials has significantly increased the number of trials to more than 50 a day and has lead to many new users. It has also increased the sales of the on-premise version, or still opt that direction.

We next covered their enterprise integration strategy. I think this is key since without integration across other apps that customers use daily, more silos are created and proper workflow does not occur. Matt said that they have built a platform in all their products that accepts add-on integrations and opening the door to third-party developers, like AppFusions among others, to build integrated  solutions.

The recent released of the Atlassian Marketplace at the end of May 2012 was a major move in this direction. Third-party developers can place their add-ons in the marketplace and Atlassian handles all the business issues, including payments. This is a win for all parties as customers only have to deal with one source at the procurement level: Atlassian vs. third-party developer “shops” spread across the globe. Some third-party developers report that their evaluations have more than tripled.

Bill pointed out that the integration requirements are not limited to legacy Enterprise apps. They are getting demand for integration add-ons for other cloud-based tools like Google Docs, Box and Dropbox, all of which are being met in the Marketplace.

He added that plug-ins go well-beyond simple connectivity integration issues, including also allowing for increased functionality. And these cloud-tools are not just used by consumers or SMBs these days. More and more large customers are starting to also adopt these tools, for both cost advantages and IT convenience.

I like the flexibility of their business model and the creation of the marketplace where everyone wins.

All of the moves to support the enterprise that we discussed make a lot of sense and I can see why sales have grown significantly. I look forward to seeing what happens next.

We closed with the idea of covering the release of Confluence 4.3 in early September that will have major new capabilities. You can try it now though; the early access release is available now.

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Updated 8/17/2012: Just released Open Webinar on JIRA Enterprise offering (and mentions abt upcoming Confluence Enterprise). Another valuable presentation: JIRA State of the Union, Atlassian Summit 2012

Interview by Bill Ives of the Merced Group, and who also blogs at Portals and KM.

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