The CEO of the Atlasian Mike Cannon-Brookes
© 2022 Bloomberg Finance LP
Atlassian Corp. announced greater acquisition To date with the $ 1 billion cash and stock agreement for the Developer DX productivity platform. The move comes as businesses are struggling to quantify returns in huge AI software investment, placing the Atlassian to benefit from a critical market need.
The Sydney -based Atlassian, whose Jira and confusion tools are used by more than 300,000 organizations worldwide, bet that companies need better ways to measure if their AI spending really improve software growth.
What does DX bring to the table
Founded five years ago in Salt Lake City, DX It provides a analysis platform that helps businesses monitor the performance of the engineers team and identify the growth congestion points. The company serves more than 350 business customers, such as Dropbox, Pinterest and Bny Mellon. Specifically, 90% of DX’s customers already use Atlassian’s basic products.
Time could not be better. Informatics executives face AI expenses, which often exceed 300-400%of traditional productivity tools. DX’s ability to measure AI investment performance faces a critical gap on business tools, helping organizations justify and optimize AI expenses focused on growth.
Competitive impact
Once the deal is closed, the Atlassian will become the first major platform seller to provide a comprehensive measurement of management, cooperation and productivity productivity in a single ecosystem. This creates immediate competitive pressure on Microsoft, Gitlab and other platform suppliers to develop similar opportunities through acquisition or internal development.
Microsoft has the most important competitive threat with the combination of Github, Azure Devops and teams, providing an integrated environment of growth and cooperation. However, Microsoft platforms do not currently have the specialized productivity of the developers provided by DX. This gives Atlassian clear differentiation in this area.
The acquisition also places the Atlassian before pure playing projects such as Asana and Monday.com, who do not have both the tools that focus on the developer and the capabilities of the productivity that the DX brings to the ecosystem.
More than an extension of a product
Earlier this year, at the recent event of his team at Anaheim, Atlassian presented a vision extending far beyond the roots of growth. The announcements have shown a company with ambition to become the connective tissue that unifies work throughout organizations.
This makes the $ 1 billion dollar of DX’s DX a strategic game that overcomes the expansion of products. The deal is a move by Atlassian to dominate the future of software development driven by AI-Driven Enterprise.
The combination of project management, cooperation and productivity measurement on a comprehensive platform allows the Atlassian to create a competitive ditch that will be difficult for competitors to cross quickly.
For organizations that have already invested in the Atlassian ecosystem, the DX integration offers greater visibility in the performance of the Development Group without additional suppliers or complexity of completion.
However, customers committed to competitive platforms face increased cost of switching as they weigh the value of integrated productivity measurement against their existing tools.
The bottom line for IT leaders
The acquisition validates the market for Insights Productivity Insights and confirms the maturation of these tools by specialized detail platforms in basic business infrastructure. Organizations that evaluate autonomous productivity measuring tools now face a choice between the best breeds solutions and integrated platforms, such as the extended Atlassian ecosystem.
For IT leaders, the Atlassian-DX combination creates the opportunity to turn the development team management from intuition based on data-based decision-making.
The ability of a business to develop effective software is inherently linked to its competitive power. It is at the core of the digital transformation driven by AI. In this arrangement, the ability to measure, optimize and demonstrate the value of development investment is a critical business feature.
The question for IT leaders is how quickly their body can apply these capabilities before allowing competitors to gain an insurmountable advantage. With the acquisition of DX, Atlassian seems ready to help.
Revelation: Steve McDowell is an industry analyst and Nand Research is an industry analyst company that deals or has been involved in research, analysis and consulting with many technology companies, but _not_ every company referring to this article. No company mentioned was involved in writing this article.
