Please ensure Javascript is enabled for purposes of website accessibility

What Is Atlassian's Edge?

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In a crowded market, how does this software specialist stand out?

Software companies seem to be popping up all over the place peddling team-oriented productivity applications. It's not surprising either. The status quo has been whiteboards, emails, and sticky notes that haven't scaled well to serve distributed teams working remotely. On a Fool Live episode, recorded on April 14, Fool contributors Brian Stoffel and Brian Feroldi discuss what gives Atlassian's (TEAM 5.39%) software tools an edge over the competition. 

Brian Feroldi: Brian, there is a lot of competition in the work productivity space. Microsoft has been acquiring in there. We've seen companies like Asana come public and get access to capital. What gives Atlassian an edge in the long term?

Brian Stoffel: I think what gives Atlassian an edge are two things. One is that Jira, which is their way to collaboratively work on code, is so popular that developers, I've literally read them say, "You have to pull this out of my cold dead hands, I will not leave it." The company was bootstrapped with $10,000 of credit card debt [when it was first founded]. They had to make a product that was so good that it would sell itself without a sales force, and they did that. That's the first part.

Then the second part is just that they're building a large enough umbrella of good-enough tools that I think that they are becoming the de facto choice for people to use when they just want to have one vendor for all of their collaboration tools. That's why.

Brian Feroldi: There we go. They're adding customers left and right. That's a good metric, too, to look at.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Atlassian Corporation Plc Stock Quote
Atlassian Corporation Plc
TEAM
$197.51 (5.39%) $10.11
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$259.58 (1.07%) $2.75
Asana, Inc. Stock Quote
Asana, Inc.
ASAN
$17.88 (1.71%) $0.30

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.