LAS VEGAS — Atlassian Corp. and Amazon.com Inc.’s AWS on Wednesday announced a multi-year agreement to fast-track cloud transformation projects and deliver advanced artificial intelligence (AI) and security capabilities to enterprises.

The accord, announced at the re:invent conference here, is expected to accelerate the transition of enterprise customers from Atlassian’s Data Center business to Atlassian Cloud, powered by AWS. It should also aid enterprises in developing applications on Atlassian’s Forge platform using AWS technologies, which include generative AI tools like Amazon Bedrock.

“The new strategic collaboration agreement with AWS represents a significant opportunity to drive cloud transformation and deliver advanced AI capabilities to our enterprise customers, all backed by world-class infrastructure, security, and privacy of cloud,” Asha Thurthi, head of product strategy and operations at Atlassian, said in a statement.

For now, Atlassian predominately runs software for large enterprises in on-premises data centers: The company says more than $1 billion of its $4.6 billion in trailing-12-month revenue comes from Atlassian Data Center.

The collaboration — which builds on more than a decade partnership between the companies — addresses the cost, time and security challenges of migrating large and complicated enterprise workloads within on-premises data centers to the cloud. Atlassian Cloud has some capabilities that Atlassian Data Center doesn’t, including AI, automation, analytics and unified search capabilities like Atlassian Intelligence to help enhance productivity.

Analysts expect the new arrangement between AWS and Atlassian to streamline the migration process through the establishment of a joint Cloud Center for Excellence. The center is equipped to smooth large enterprises’ path to complex workloads, enabling the largest Atlassian customers to take advantage of cutting-edge cloud tools.

Atlassian hopes to further benefit from the digitalization of work from organizations and the rapid adoption of cloud services via its strategic collaboration with AWS. The worldwide enterprise collaboration market is forecast to hit $90.6 billion by 2028 from $54.5 billion in 2023, according to market researcher Mordor Intelligence.

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