Atlassian's push to the cloud is complicated by the recession and its impact on customers

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Atlassian's push to the cloud is complicated by the recession and its impact on customers
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Atlassian is offering discounts to persuade customers to to make the transition to its cloud products.

Cloud services come with a lower gross margin than on-premises software, but Atlassian sees benefits for itself and customers.

Cloud today represents less than half of Atlassian's total revenue, a figure the company wants to push to 90% or higher. Delivering its tools over the web, withWeb Services hosting the technology, could translate into a higher-quality experience for more clients, because Atlassian will be able to make more rapid enhancements, taking into account customer feedback, co-CEO Scott Farquhar told CNBC this week.

"Customers do not want to be in the business of downloading software, putting it on an operating system, keeping both of them up to date," Farquhar said.

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