Atlassian, an Australian software company, has seen a significant increase in profits despite ceasing direct sales to developers. This unexpected success is attributed to a shift in its business model, focusing on selling to teams rather than individuals. The company’s products, such as Jira and Confluence, are designed to improve collaboration and efficiency within teams.
Atlassian’s growth has been fuelled by the rising demand for remote working tools during the pandemic. The company’s subscription revenue has increased by 36%, reaching $1.61 billion in the fiscal year 2021. The shift away from perpetual licensing to a subscription model has also contributed to this growth.
The company’s strategy of ‘land and expand’ has been effective. It involves selling a single product to a team within a company, then expanding the use of that product to other teams. This approach has helped Atlassian to penetrate larger organisations and increase its customer base.
Atlassian’s success demonstrates the potential of team-based selling in the software industry. It also highlights the importance of adaptability and innovation in business strategy. Despite the challenges posed by the pandemic, Atlassian has managed to thrive by responding to changing market conditions and customer needs.
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