👉 Background: Atlassian is the Australian-founded tech company that's listed on the Nasdaq. It's the company behind tech and collaboration tools like Jira, Trello, Confluence, and Bitbucket. They also recently acquired video recording software Loom for $1.5 billion.

👉 What happened: Now, Atlassian has released its quarterly results, which shows that growth has slowed down for the fifth quarter in a row. And, its net loss grew to nearly $32 million USD for the past 3 months.

👉 What else: But that's not Atlassian's only challenge. They're in the process of trying to migrate thousands of its customers into the cloud from its old-school servers. But investors are worried that these customers might actually just leave the company altogether. So after this announcement, Atlassian's shares dropped more than 10%.

What's the key learning?

💡As companies phase out older products, the challenge isn't just technological — it's about keeping loyal customers on board.

💡Atlassian flagged this migration process to its customers for the past 3 years, but many customers still haven't made the big switch. For many companies, the migration is expensive, time consuming, and potentially pretty risk if not managed right.

💡But Atlassian isn't the only one that faced this migration challenge:

• Adobe shifted from its perpetual licenses in 2013 to its subscription-based service.
• Microsoft also shifted from its one-off CD Roms to its subscription-based Office Suite.

So Atlassian is hoping it can succeed in the same way as those that have made the migration before them.

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