Atlassian (TEAM) Rides on Digital Transformation, Acquisitions
Atlassian TEAM has been benefiting from the strong adoption of its cloud-based products and solutions as customers are undergoing a major digital transformation amid the ongoing hybrid work environment. Moreover, the cloud-based workflow management software provider’s sustained focus on acquisitions and partnerships is helping it enhance its product offerings and expand across newer markets.
Cloud Adoption Driving Atlassian’s Growth
The accelerated digital transformation amid the growing hybrid working trend is spurring demand for Atlassian’s cloud-based solutions. The company’s ability to provide an integrated solution for enterprises’ workflow collaboration and management is the key driver.
With more customers migrating to the cloud amid the ongoing hybrid working trend, Atlassian has been witnessing strong demand for its premium and Enterprise edition cloud solutions.
Growing traction for core products like Jira Software and Confluence Cloud and the rising adoption of new products like Jira Service Management are acting as key catalysts. An improvement in product quality and performance and multiple product launches, along with increased pricing, are boosting the firm’s performance as well.
We believe that Atlassian is poised to grow, given the rising demand for automated and improved communication systems within organizations. Furthermore, TEAM will benefit from ongoing digital transformation initiatives from organizations and the rapid adoption of cloud services.
Per a MarketsAndMarkets report, the global enterprise collaboration market is likely to reach $85.8 billion by 2026 from $47.2 billion in 2021, indicating a CAGR of 12.7%.
Expanding Portfolio Through Acquisitions & Partnerships
Atlassian has been strengthening its core competencies by pursuing strategic collaborations and acquisitions.
Since its inception in 2002, the company has acquired 19 businesses. Recently, the company acquired Percept.AI, an artificial intelligence-powered virtual agent technology provider. The acquisition is believed to enhance the capabilities of its Jira Service Management tools through which IT teams can deliver better services to employees and customers.
In 2021, Atlassian acquired two firms — Charito and ThinkTilt. While Charito provides cloud-based visualization and analytics solutions, ThinkTilt is a maker of ProForma, a no-code/low-code form builder for Jira. These acquisitions have not only expanded Atlassian’s product portfolio but also added to the customer base and incremental revenues.
Additionally, Atlassian's partnership agreements with several tech companies have been helping it expand its international operations. As part of its partnership programs, the company has integrated its solutions with applications, such as Dropbox DBX, Adobe ADBE and Alphabet’s GOOGL Google.
Atlassian has integrated Dropbox’s tools into its Trello, Jira and Confluence solutions. The seamless integrations help teams streamline their work, improve collaboration and better organize projects.
Partnering with Adobe, Atlassian offers easy access to the former’s XD prototypes and design specs to its Jira software users. The integration of the two companies’ tools streamlines designer developer workflows, communication, notifications on every design update and preview comments on viewed designs.
The partnership with Alphabet’s Google helps Atlassian tool users connect applications for Jira, Confluence, Bitbucket and Trello with the G Suite product. This facilitates better work collaboration between teams in real time.
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