That is not the plan – nor was a larger loss – so investors whacked the Aussie’s share price
Atlassian’s share price has taken a sharp dive after the Australian collaboration corporation revealed decent results, but predicted its on-prem products would grow faster than its cloud.
As The Register recently reported, Atlassian is months away from ending support for its Server products, leaving users with a choice of moving to the A-Cloud or paying for at least 500 seats worth of Datacenter licenses. Atlassian effectively decided to kill off its Server products because it wants to be cloud first.
On Atlassian’s Q1 2024 earnings call, execs acknowledged that some customers won’t move from their Server licenses before the February 2024 end of support milestone. Co-CEO Scott Farquhar even noted that “half of the migrations we’re getting [to cloud] are from Datacenter.”
Even with that shift of emphasis to the cloud, Atlassian’s earnings announcement [PDF], released Thursday, saw it forecast 2024 cloud revenue would grow at between 25 and 30 percent – but its Datacenter products would deliver approximately 31 percent growth.
In Q2 Datacenter licenses were forecast to bring 33 per cent year-over-year growth, compared to a predicted 25.
