Atlassian Is Going All-In on Cloud

Atlassian (NASDAQ: TEAM) is riding the trend of digital transformation, with its team-productivity software driving its stock up more than 60% this year. Given this momentum, some may have been surprised when the company made an announcement that would disrupt a large set of its important customers: It is ending support for its server products that customers have installed in their own data centers.

Let's take a closer look at what's actually happening here and what it might mean for investors.

Customers have three ways they can install Atlassian's software for users. The most popular option is its cloud-based offerings, which 95% of new customers choose because of the easy start-up, automatic upgrades, and scalability. A second option is a server version that allows customers to install the software in their own data centers and control when software upgrades happen. The company will be ending its support for this version in the coming years. Management estimates that 30,000 customers (out of 182,000-plus) and 75% of the user base will be affected.

Source Fool.com