OpsGenie is an intelligent information and alert management system purchased by Atlassian for 5M with an estimated turnover multiplier of about 20. Atlassian, famous for its corporate business software, has a stock market value exceeding billion and stands out with its recent corporate acquisitions.
In an interview with OpsGenie founder Berkay at the Glocal Podcast, we examined the reasons for this purchase. The great opportunity in this market and the main reasons why Atlassian wants to accelerate his entry into this area (time to market). The right timing for these strategic purchases creates big multipliers, while late or early sales, depending on market maturity, can go below stock market multipliers, even if there is rapid growth in companies.
Instead of focusing its focus on artificial intelligence or predictive models, such as its competitors, opsGenie focused on workflow and communication paths. Focusing on communication with many people and units within a company at warning points, OpsGenie has established a structure parallel to Atlassian’s vision: teams that work together faster and smarter.
Wanting to add these features to the project management tool Jira, Atlassian acquired OpsGenie and launched action-takeaction JiraOps by automatically notifying software interruptions.
OpsGenie has adapted perfectly with Its Atlassian products, enabling its customers to solve downtime problems more quickly, bringing great efficiency to their operations. OpsGenie, which already felt the need to create similar critical products such as Confluence and Jira after an event, did not have this financial resource, so it went into two-way integration with these products from the very beginning. He has already opened the door with atlassian products such as Bitbucket, Statuspage and Bamboo, undergoing strong integration.
OpsGenie has tried to integrate with many software in front and behind it, playing an ecosystem game from its earliest days. OpsGenie, which has made its name in this way to potential buyers, must have attracted the attention of Atlassian, who worked hard to buy Atlassian OpsGenie in a market that was made up of only a handful of companies from scratch.
Instead of growing up taking series investment rounds, Atlassian proceeded for a long time, similar to OpsGenie, by bootstraping with his own resources. At the end of this road, the company, which is an IPO, has found its place in the market with tight customer feedback cycles and product continuous iterations, just as OpsGenie has adopted.
OpsGenie’s product and customer-centric culture and the focus of technological innovations have culturally supported this acquisition. With the strengthening of synergy with the merger, we can instill some Turkish culture in Atlassian and now 🙂
It’s hard to estimate the potential size of the smart information market. Nevertheless, in a technology environment where customer touch points are growing rapidly, it is more important than ever that systems are effective and not interrupted. Aware of this, many of the large companies have begun to adopt the management products that enable it. There is no doubt that this trend will grow towards the lower segments and different geographies.
There are several companies in this market that have established themselves in a certain position. PagerDuty, which is part of these companies, recently went on the stock market and has managed to increase its market value to around billion. Atlassian looks like he’s going to collide with market-leading ServiceNow with this acquisition. Market opportunity is growing rapidly in parallel with the same workflow management or automation software.
As Berkay mentioned in the Glocal publication, OpsGenie does not have an impossible technology to create or a huge customer base that will make itself an attractive purchasing target. However, such a comprehensive product cannot be created in a short time, and the time lost in the meantime can also cause the market opportunities mentioned above to escape. The importance of the product’s launch time, I’m sure, was also an important factor in Atlassian’s rapid movement, and the company was very enthusiastic about the opportunities.
OpsGenie has an excellent team of infrastructure software that has been working together for almost 20 years. It’s certainly very, very difficult to bring a break from scratch to a team like this, if not impossible.
At a time when robotic automation and process automation companies were rapidly adapting, it was inevitable that a collaborative and workflow-oriented enterprise software company like Atlassian would concentrate its investments in this field. Both vertical functionality like OpsGenie and focusing on a specific sector and more horizontal workflow automation companies will continue to buy I think.
Finally, let’s note that episodes of Glocal can be listened to on Spotify, Apple Podcasts, Google Podcasts, Anchor.fm, Overcast, Radio Public.