Traditionally, the sales cycle for business software has been long. And it often requires the support of a salesforce, which can certainly be expensive (such as with commissions and travel/entertainment).
But there is a company that has found a way to scale its software business without any salespeople:
Atlassian. Founded in 2002, it now has more than 24,000 customers across 138 countries. Some of the brands include American Express (NYSE:AXP), eBay (Nasdaq:EBAY) and IKEA.
In fact, Atlassian was profitable from the start. Then again, it had no choice. The company had to rely on a $10,000 credit card loan.
“Our goal was to build a great product,” said Scott Farquhar, who is the co-founder and CEO. The first offering was JIRA, which helped with tracking software bugs. “We wanted to make it extremely easy to install and use. It was about applying the consumer model to business software. From there, we benefited from word-of-mouth marketing.”
Scott realized that to get adoption, the software had to also be inexpensive. This meant there was often no need to get approval from the C-suite.
Another key was the simplicity of the sales process. “We have a standard contract and there are no discounts,” said Scott. “We do not want to waste time and money on legal.”
Over the years, Atlassian has leveraged its growing footprint. The result has been more products, such as Confluence, Bamboo and Crowd.
Interestingly enough, about a year ago Atlassian received a $60 million investment from Accel Partners, which is a tier-1 venture capitalist. It was actually the firm’s largest investment in a software company.
“We want to have a company that’s built to last,” said Scott.
Atlassian
From Wikipedia, the free encyclopedia
Atlassian
Type PrivateIndustry
SoftwareFounded 2002
Headquarters
Sydney,
AustraliaKey people Mike Cannon-Brookes
Scott Farquhar
Products
JIRAConfluenceStash
BitbucketHipChatCrowd
BambooGreenHopper (now JIRA Agile)
SourceTree
FishEyeCloverCrucibleBonfire (now JIRA Capture)
Confluence Team Calendars
Revenue $102 million (2011)
Employees 600+
[1]Website
AtlassianAtlassian
/ˈætlæsiʌn/ is an Australian
enterprise software company that develops products geared towards
software developers and
project managers.
[2][3][4] It is best known for its issue tracking application, JIRA, and its team collaboration product, Confluence.
[3][5]Atlassian serves over 25,000 customers globally, and its clients include Audi, NASA, Twitter, Infor, and Cisco.
[2][3][6][7][1]Atlassian is headquartered in
Sydney, Australia.
[2] It also has offices in
Amsterdam and
San Francisco. As of May 2013, the company has over 600 employees.
[1]On Valentines Day of 2014, Atlassian president Jay Simons announced the opening of an Austin office that will eventually employ 600.
Contents [
hide]
1 History2 Revenue Model3 Products and Services4 Motivation5 Awards and Recognition6 External links7 ReferencesHistory[
edit]
Atlassian was founded in 2002 by Mike Cannon-Brookes and Scott Farquhar.
[2][1] The pair met while studying at the
University of New South Wales in Sydney.
[8] They
bootstrappedthe company for several years, financing the startup with a $10,000 credit card debt.
[5] In July 2010, Atlassian raised $60 million in
venture capital from
Accel Partners.
[6]In 2006, Cannon-Brookes and Farquhar were named Ernst & Young’s Entrepreneurs of the Year.
[9] The two also maintain a 100% GlassDoor rating.
[10]In March 2011, the company raised $1 million for the charity
Room to Read from sales of its $10 “Starter” licenses.
[11]Revenue Model[
edit]
Atlassian does not have a traditional sales team. Instead, it lists all prices, information about products, documentation, support requests, and training materials on its website.
[12] The company does not offer discounts, with the exception of academic and charity organizations.
[13] All products are available as hosted or installed versions, starting at $10 for 10 licenses, but pricing does not scale up linearly. In 2011, Atlassian announced bookings of $102 million, up 35% from the year before.
[14]Products and Services[
edit]
Atlassian provides developers and project managers with hosted or installed software falling into six categories: Project and Issue Tracking Software, Collaboration and Content Sharing, DVCS Solutions, Code Quality, AddOns, and Training Products.
Atlassian’s flagship product is
JIRA, a project and issue tracker, which was released in 2002. The following year it released Confluence, a team collaboration platform that lets users work together on projects, co-create content, and share documents and other media assets.
[15]In 2010, Atlassian acquired
Bitbucket, a
hosted service for code collaboration.
[16] In May 2012, the company launched a Marketplace website where customers can download
plug-ins for various Atlassian products.
[17][18] That year, Atlassian also released Stash, a Git repository for enterprises.
Additional products include Crucible, FishEye, Bamboo, and Clover, which are targeted at programmers working with a code base. FishEye, Crucible and Clover were added to Atlassian's portfolio through the acquisition of another Australian software company, Cenqua in 2007.
[19] In 2012, Atlassian acquired HipChat, an instant messenger for workplace environments. In 2013 they announced the launch of JIRA Service Desk, a service desk product with full SLA support.
Motivation[
edit]
Atlassian also began a now-popular tradition at software companies where software developers can spend 24 hours tackling any problem they like. Atlassian calls these ShipIt Days, though for years they were known as FedEx Days until FedEx asked for its name to be disassociated with the process.
[20]Author Daniel Pink devoted a chapter to Atlassian's FedEx Days in his bestselling business motivation book, Drive, and the concept has been adopted elsewhere, Pink noted.
[21]Awards and Recognition[
edit]
Company Awards
[22]Annual Computerworld Honors Program Names 2012 Laureates
[23]Best Places to Work finalists revealed
[24]Atlassian Wins Deloitte Technology Fast 50 Award
[25]Technology Pioneers
[26]External links[
edit]
Official WebsiteReferences[
edit]
^
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^
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^
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^
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^
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Influencers in the Startup Space Australia 2013