Re:Inside the longest Atlassian outage
by a4isms on Wednesday April 13, 2022 @06:31PM
(#31021120)
The dynamics of the Enterprise market are such that there are features where having just one customer that will make a buy/no-buy decision based on just one feature will deliver enough incremental ARR to justify the opportunity cost of doing that feature instead of a bunch of others.
Typically you do the most popular features first, but most Enterprise vendors end up working on a long tail of niche features that nevertheless are profitable.
There's a long conversation to be had about how this ends up being a trap where Enterprise software gets bloated and shitty and eventually gets disrupted by a small vendor that does "less," but in a powerful, transformative way that obsoletes the Enterprise "standard," which leads us back to discussing Atlassian :-)
They're a good example of this dynamic, because they have a "constellation" of products to sell. So if they build a niche feature that gets a new customer to buy Jira seats, having "landed" in the account, their salespeople can "expand" by selling OpsGenie and other related products very profitably.
Typically you do the most popular features first, but most Enterprise vendors end up working on a long tail of niche features that nevertheless are profitable.
There's a long conversation to be had about how this ends up being a trap where Enterprise software gets bloated and shitty and eventually gets disrupted by a small vendor that does "less," but in a powerful, transformative way that obsoletes the Enterprise "standard," which leads us back to discussing Atlassian :-)
They're a good example of this dynamic, because they have a "constellation" of products to sell. So if they build a niche feature that gets a new customer to buy Jira seats, having "landed" in the account, their salespeople can "expand" by selling OpsGenie and other related products very profitably.