Atlassian Achieves FedRAMP(R) Moderate Authorization for Atlassian Government Cloud

Rhea-AI Summary

Atlassian (NASDAQ: TEAM) has achieved FedRAMP Moderate Authorization for its Atlassian Government Cloud, marking a significant milestone in serving U.S. government customers. This authorization enables federal, state, and local government entities to adopt Atlassian's cloud solutions with confidence.

The authorization covers Jira, Confluence, and Jira Service Management, allowing government agencies currently using Atlassian Data Center to migrate to the Government Cloud platform. This transition offers access to the latest cloud innovations while maintaining high security, privacy, and compliance standards.

The company plans further investments in federal compliance, including pursuing FedRAMP High and U.S. Department of Defense Impact Level 5 (IL5) compliance. Atlassian has been serving government customers since 2002 and currently serves over 300,000 customers worldwide on its cloud platform.

Positive

• Achieved FedRAMP Moderate Authorization, enabling access to government market
• Potential for increased revenue through government agency cloud migrations
• Platform covers key products: Jira, Confluence, and Jira Service Management
• Strong existing customer base of 300,000 worldwide cloud users

Negative

• Additional investment required for higher security certifications (FedRAMP High, IL5)
• Early Access Program status indicates service not yet fully available

Insights

Financial Analyst

Atlassian's achievement of FedRAMP Moderate Authorization represents a significant expansion of its addressable market within the U.S. public sector. This regulatory milestone enables the company to convert existing government Data Center customers to its higher-margin cloud offerings while simultaneously unlocking new customer acquisition opportunities across federal, state, and local agencies.

The authorization creates a compelling migration path for government customers currently using Atlassian's Data Center products to transition to subscription-based cloud services. This shift will likely accelerate Atlassian's cloud revenue growth while improving gross margins, as cloud deployments typically generate higher lifetime customer value compared to on-premises solutions.

Additionally, the certification removes a critical barrier to entry in the public sector market. Government IT purchasing decisions often require FedRAMP authorization as a prerequisite, making this certification essential for competing effectively in this space. With over 300,000 customers already using Atlassian's cloud platform globally, the company has demonstrated the scalability needed to support large government deployments.

The company's commitment to pursuing even higher security certifications (FedRAMP High and DoD IL5) indicates a strategic focus on capturing market share in highly regulated industries. This positions Atlassian to compete more effectively against enterprise software rivals like Microsoft and ServiceNow in sensitive government workloads, potentially driving sustainable long-term revenue growth in this relatively recession-resistant customer segment.

Technology Strategist

Atlassian's FedRAMP Moderate Authorization represents a technical validation of their cloud infrastructure security and compliance capabilities. The certification process is notoriously rigorous, requiring extensive documentation, security controls implementation, and third-party assessment of the company's cloud environment.

From a product strategy perspective, this authorization enables Atlassian to offer a consistent feature set across both commercial and government customers. This architectural unification should improve development efficiency by eliminating the need to maintain separate codebases for government clients. The certification specifically covers their core collaboration tools—Jira, Confluence, and Jira Service Management—which form the foundation of their product suite.

The migration opportunity from Data Center to Government Cloud offers substantial operational benefits for government agencies. By offloading infrastructure management to Atlassian, agencies can reduce their technical debt and reallocate IT resources from maintenance to innovation. This aligns with the federal government's broader "Cloud First" policy direction.

Looking forward, Atlassian's pursuit of FedRAMP High and IL5 certifications suggests they're building a comprehensive security compliance framework that will eventually enable them to serve even the most sensitive government workloads. This layered compliance strategy creates a competitive moat, as these certifications require substantial investment and expertise that smaller competitors may struggle to match, potentially creating switching costs that lock in government customers for the long term.

This Milestone Reflects the Company's Commitment to be a Strategic Partner for U.S. Government Customers

TEAM Anywhere/SAN FRANCISCO--(BUSINESS WIRE)-- Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced that Atlassian Government Cloud has received Federal Risk and Authorization Management Program (FedRAMP) authorization at the Moderate level. FedRAMP is a U.S. government program that promotes the adoption of cloud technologies across the federal government by providing a standardized approach to validating security and risk controls for cloud-based products and services.

With this authorization, U.S. federal, state, and local government entities, as well as their industry partners, can confidently adopt Atlassian Government Cloud, benefiting from seamless agency-wide collaboration, enhanced access to data-driven insights, and streamlined administrative processes. This also enables government agencies currently using Atlassian Data Center to migrate to Atlassian Government Cloud, accessing the latest innovations in cloud technology underpinned by world-class security, privacy, compliance, and reliability while also offloading server maintenance costs. Atlassian Government Cloud is available for Jira, Confluence, and Jira Service Management.

This significant milestone underscores Atlassian's investments to meet the stringent security and compliance needs of U.S. government customers and other organizations in highly regulated industries. Atlassian remains committed to meeting federal compliance and security standards with future investments such as FedRAMP High and U.S. Department of Defense Impact Level 5 (IL5) compliance.

"Achieving FedRAMP authorization is a major milestone on our mission to unleash the potential of every team, including the ones in highly regulated industries,” said Rajeev Rajan, Chief Technology Officer at Atlassian. “This authorization validates Atlassian cloud’s readiness for mission-critical government applications and allows us to introduce cutting-edge cloud solutions to accelerate productivity and innovation across U.S. government agencies.”

“Our private sector customers have been reaping the benefits of greater productivity, reduced context switching, and better, insight-driven decisions with Atlassian cloud products,” said Matthew Graviss, U.S. Public Sector CTO at Atlassian. “After spending the better part of my career in government, I can tell you that moments like these are watersheds in our ability to be a true strategic partner to our public sector customers so they can do the same.”

Atlassian has been serving US government customers since 2002, the year of its founding. Today, over 300,000 customers worldwide trust Atlassian’s cloud platform. Read more about the investments Atlassian has made in enterprise-grade resilience, data protection, and administration controls here: https://www.atlassian.com/trust.

Join the Early Access Program

Government customers interested in Atlassian Government Cloud can join the waitlist for the Early Access Program here: https://www.atlassian.com/government/cloud

About Atlassian

Atlassian unleashes the potential of every team. Our software development, service management, and work management software helps teams organize, discuss, and complete shared work. The majority of the Fortune 500 and over 300,000 companies of all sizes worldwide - including U.S. government agencies like NASA, the U.S. Space Force, and the CA Department of Healthcare Services - rely on our solutions to help their teams work better together and deliver quality results on time. Learn more about our products, including Jira, Confluence, and Jira Service Management, at https://atlassian.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250317008810/en/

For further information, please contact Atlassian at press@atlassian.com

Source: Atlassian Corporation

FAQ

What does Atlassian's FedRAMP Moderate Authorization mean for TEAM stock?

It allows Atlassian to expand into the government sector market, potentially increasing revenue through new customer acquisition and existing customer migration to cloud services.

Which Atlassian (TEAM) products are available in the Government Cloud?

Jira, Confluence, and Jira Service Management are available in Atlassian Government Cloud.

How many customers use Atlassian's cloud platform in 2023?

Over 300,000 customers worldwide use Atlassian's cloud platform.

What additional security certifications is Atlassian (TEAM) pursuing for government clients?

Atlassian is pursuing FedRAMP High and U.S. Department of Defense Impact Level 5 (IL5) compliance.

When did Atlassian start serving U.S. government customers?

Atlassian has been serving U.S. government customers since 2002, the year of its founding.