Joe Binz: Yeah. And other
Arjun Bhatia: Go ahead. Sorry.
Joe Binz: I will just add a couple of other items just from our go-to-market side of the house, because obviously, we have espoused the benefits in share expansion for some time. But even the last month, we have taken advantage actually of like, listen, there is macroeconomic uncertainty. People are trying to save money. In Jira Service Management, we actually increased the entry level from three agents for free to 10 agents for free, which actually is for, like, if you think about it, a company of 200 people will largely have 10 agents at most. So we are helping really get many, many, many of our existing customers or new customers coming in the door to start using Jira Service Management in anger at no cost whatsoever. And of course, over time, we will continue to get them to upgrade the paid plans or move to premium versions of our products.
So, once again, in this downturn, we are taking advantage to capture market share. And then on the larger side of the house, like, in — while we absolutely go into, hey, how do we start at a team or in a department, where can we basically help companies be a little bit more nimble, a little bit more fast and not have to think about it ripping to replace the entire IT platform, that’s been our primary strategy. However, there are many companies out there that are trying to save money, trying to consolidate spend and Jira Service Management is a massive savings compared to many of the alternatives in the industry and we give a great compelling offering for customers to move to. So we have seen other strategies across the Board pay off in the recent quarters.
Arjun Bhatia: Perfect. Thank you very much. Very helpful.
Operator: Your next question comes from Ryan MacWilliams from Barclays. Please go ahead.
Ryan MacWilliams: Thanks for taking the question. So data center continues to gain share as a percentage of your sales. Are you seeing stronger than expected migrations to data center instead of cloud at this point and what is driving the commentary for moderating data center growth in the second half? Thanks.
Cameron Deatsch: Yeah. This is Cameron again. And yeah, data center is a fantastic offering. I just have to say that. Like, there’s a reason people use data center, it’s provides the scale, mission criticality performance that many of our customers demand, especially in many of our largest enterprise customers. As I mentioned prior, this is all about a multiyear journey away from server and to cloud and data center, and we have been making cloud the primary destination for these customers and we have been seeing those migration rates to cloud, hitting very much in line with our expectations. However, many of the customers that potentially we might have seen say on server longer or potentially go to alternative solutions are choosing data centers.
So we have seen data center continue to be an increasing space of demand for many of our server customers in the interim. But I also need to call out that the path from server to data center is not a dead end. We treat — continue to see many people moving from data center to cloud. In fact, half of our migrated paid seats that go from on-premises come from data center customers to the cloud. So we see this as just a — moving to data center is a great thing. The future investment in Atlassian, it’s more commitment to our products and absolutely sets us up for future cloud migrations in the years to come.
