Operator: Your next question comes from Michael Turits from KeyBanc. Please go ahead.
Michael Turits: Hey, guys. Maybe we can talk about JSM. One of the things that I thought was interesting at Team ’23 was that movement to templates as a way of taking JSM beyond just the IT department in the other areas of enterprise. Perhaps you can talk a little bit about the success there and how much non-IT take rate you’re starting to get with JSM?
Scott Farquhar: This is Scott here. That’s something we’re very excited by is the fact that we get really excited thinking about how health happens across an organization. It’s typically a frustrating experience for sort of a matter where you sit in the organization, getting help from another team can be quite a frustrating experience. It’s often mediated in slack or e-mails and you have to search for that information to actually get something done. And while we see IT teams being sort of the forefront of making that a better experience. The more forward of our customers are saying, why is that not the case also for our legal department to get a contract reviewed? Why is that not the case and I want something to my HR department?
And, so as a result of that and building the features there, as you mentioned, with temples, 60% of our JSM customers now use JSM outside of IT. And I think you can see more and more of that. We’re particularly excited because at a price point and with our usability, I think we have a better opportunity than any other vendors in this space to go beyond the traditional IT help desk. And so yes, we’re really excited about that, and I’m glad you’ve recognized it.
Operator: Your next question comes from Ittai Kidron from Oppenheimer. Please go ahead.
Ittai Kidron: Thanks. A couple of questions for me. First, can you give us an update on work management and your progress there in the field? And whether that part of the business is affected more by slower freight to paid conversions. And the second question relates to the migration. It seemed like as part of your prepared remarks, you suggested maybe I got this wrong, that you expect some customers not to migrate? Can you give a little bit more color on that, have you already heard from customers that they intend to not migrate at all and just move elsewhere or leave without support? If you can give us more color on the magnitude of that cohort? Will be greatly appreciated. Thanks.
Cameron Deatsch: This is Cameron. I’ll speak to the work management side of this and slightly to the migration piece, then hand off to Joe. So yes, listen, work management is a key part of our overall offerings. And just remember, the products that we put in there our Confluence, our second largest product, and we have massive adoption across our customer base, and massive usage and has been a key part of our SMB, as well as our enterprise business. And many of the new functionalities we drive in Confluence, whether that’s the whiteboarding capabilities, automation capabilities, you name it, have been key compelling drivers for migrations themselves. Adding our other offerings like Jira Work Management, which allows for much simpler business-friendly projects tied to your Jira usage is a great way to extend from those technical development and IT teams into these other business use cases and projects, and we’ve seen significant adoption of those Jira Work Management project templates.
We have a new product called Atlas allowing you to basically communicate the status and updates on who is working on projects and the status of those projects and the goals and OTRs associated with them, regardless of where the work is happening. And as we already mentioned, Atlassian together, bringing all those products together in a single offering at a competitive price, allowing customers who are looking to consolidate their work management tools onto a single platform for Atlassian. So absolutely a critical part of our go-to-market going forward and part of our overall financial picture over the last year. As far as the migrations themselves, the server customers, there is a significant portion of server customers who have yet to decide to move to data center or cloud.
And we are working with, every single one, I’ll tell you right now is definitely aware of this February date. And we will hopefully ensure that we guide them to either a cloud or data center decision post February. As far as going to alternatives or so on, really, we haven’t had many of those conversations or see any spike. The migrations process has been very much in line with our plans and continues to be month-on-month. Joe, Mike, do you have anything to add?
Joe Binz: Yes. Thanks, Cam. In terms of the question on guidance, there is, as Cam mentioned, a server cohort that will not migrate to data center or server in FY ’24. And we factored that into our guidance. We based that on an analysis of our server customer base, the trends we’re seeing, the customer profile, the surveys that Cam mentioned. So we have accounted for that. We have a prudent assumption to account for that, and that is in the guidance itself.
Mike Cannon-Brookes: I can just add one or two more points on work management. Ittai. Firstly, I think we continue to see value in being quite unique in the market in bridging technical and non-technical teams across the work management space. It’s important to note that our three markets don’t exist in isolation. They each have unique sales motions and unique target personas, but they are intimately connected in a lot of different ways. For example, you might have marketing teams in Trello that need to connect to engineering teams and operations teams that live in Jira Software, for example, that uniqueness is a really good, a differentiator for us at the moment in the market. Secondly, with things like Atlassian Together, has been mentioned earlier in the call, consolidation on those spaces is a big part of things, and you’ve seen that with execution so far, but also with the Loom and with the other things that we are delivering and adding to that space.
Again, Loom will sit in the work management area as far as Atlassian is concerned. So just wanted to be clear that we are pretty steadfast in our commitment to work management. We think it’s a huge opportunity for us, and we’re not waffling around at all.
Operator: Your next question comes from DJ Hynes from Canaccord Genuity. Please go ahead.
Lucas Morison: Hey, this is Luke on for DJ. Thank for taking the question. So I’m going to dovetail off of the other questions around migrations after end of life. I’m wondering if you can comment just sort of how much flexibility do your customers have to extend beyond that deadline? How difficult is it for them to continue using those products once they’re no longer supported. And then how long could it take for those remaining migrations to actually play out?
Cameron Deatsch: This is Cameron here. A couple of different dynamics of that question. But first off, will customers, will we extend support to server customers post the server end of life? And the answer there is no. Those customers that gave those customers basically 3.5 years heads up to make this decision, and we’re definitely holding by that. That said, if a server customer comes by, just so you know the server licenses are perpetual licenses. So their software will continue to work. They just simply will not be able to get maintenance patch updates, new functionality or any support from Atlassian support teams. So we’ll continue to function just fine. But once again, those customers eventually are going to want to have new capabilities or had something that they need support from and they’ll call us up.
