Atlassian begins cloud infrastructure expansion in Europe

Atlassian announced on Tuesday that it is kicking off its cloud infrastructure expansion in Ireland to cater to its European customers who bring in 40 percent of its total revenue.

Atlassian announced on Tuesday that it is going global with its cloud infrastructure, starting with Europe, one of its strongest markets accounting for nearly 40 percent of its total revenue.

The Australian-founded productivity software giant, whose product portfolio includes JIRA, Bitbucket, HipChat and Trello, said it will kick off its expansion in Ireland and will rely on Amazon Web Services (AWS) to deliver improved performance and reduced latency for its European customers, which include Babbel, BMW, Flixbus, RyanAir, and Spotify.

"We know data privacy, security, and compliance are extremely important to our customers and we're investing heavily in these areas. As part of this effort, we've made a foundational change in our cloud platform over the last year and are now using AWS to host our services," Atlassian co-founder and co-CEO Scott Farquhar wrote in a blog post.

"This enables us to offer increased variety of cloud deployment regions with strong performance and local failover options."

Atlassian revealed earlier in the year that it was in the process of migrating to the public cloud with AWS, with Farquhar saying in April that the company was seeing three big benefits in doing so.

The first is removing the need to redeploy staff around the world to set up datacentres -- which included setting up everything from air conditioning to racking servers -- and redeploying them to higher-value activities within the company.

Using AWS also allows Atlassian to have datacentres right near its customers, and internally allows the company to take advantage of the services offered by AWS that previously had to be built from within the organisation.

"We believe if you want to build a long-term company, you need to build strong foundations," Farquhar said at the AWS Summit in Sydney in April.

Farquhar said on Tuesday that Europe is a "crucial market" for Atlassian, accounting for nearly 40 percent of the company's total revenue, which reached $159.9 million in the third quarter of the 2016-17 financial year. The company said it gained 16,000 customers during that quarter, which includes the impact of its $425 million acquisition of Trello.

Atlassian has also revealed that its marketplace generated $250 million in sales since its inception in 2012, $100 million of which was raked in over the last 12 months. Atlassian Marketplace now features 3,000 add-ons.

Additionally, the company has announced enhancements to some of its enterprise developer solutions to address compliance and control. Enhancements to Bitbucket include a new committer verification hook, smart mirror authentication caching, and the ability for Bamboo build plans to be configured in code.

The company has also made available "Data Center editions" of all its major platforms including HipChat and Crowd for customers who want greater control over their infrastructure.

A significant user interface update also sees streamlined navigation, better "search" and "create" functionality, and better experiences across devices.

Atlassian undertook the biggest ever float from an Australian company in the United States in December 2015. Prior to its Nasdaq listing, Atlassian was valued at AU$5.6 billion, but the heavily oversubscribed IPO saw it reach a AU$6.01 billion valuation.

Atlassian's filing with the US Securities Exchange Commission a month prior to its IPO revealed that the company had maintained profitability for the previous 10 years.