By Jim Lundy
Atlassian Buys Loom as Demand for Micro Video Surges
Today, Atlassian announced its intent, via a definitive agreement, to acquire Micro Video provider Loom. This is both an endorsement of Loom as well as recognition that the Micro Video market is surging. This blog discusses why this deal came to be.
What is Atlassian Buying Loom?
Atlassian is buying Loom because demand for video in the enterprise is surging. Part of this is because consumer Micro Video is surging in usage – led by TikTok. At work, the feeling is that just like TikTok and Instagram it is easier to share information via video than via traditional ways – such as written documentation.
Atlassian is paying $975 Million in Cash for Loom. Based on estimates of Loom revenue around $35 Million, this deal is about 27x multiple of Looms estimated revenues. In a hot market, there is demand. We do expect demand to grow in this market as employees and customers continue to seek out this medium.
Analysis – This is Good for Atlassian
Atlassian has led in Collaboration – particularly with Jira – which ushered in a new way of doing product engineering and development by sharing stories about what a product should do. With Loom, we expect story telling to become more visual – and this can only be good for speeding up product development. Imagine seeing a demo after an engineering sprint!
Video vs. Micro Video
There are billions of views a day of Youtube Shorts – and MicroVideo is basically short videos – between 30 seconds and 3 minutes. Of course, there is more to MicroVideo than just the length of the video – ComputerVision plays a role as well. All of that is in our Research Note titled the Rise of MicroVideo.
Bottom Line
More providers should jump into Micro Video – but the good news is that Atlassian just did. With other offerins such as Zoom Clips just starting to ship – expect to see more providers jump in. The Video based enterprise is here – and when it comes to information sharing, there is no content medium that is better for sharing information than video. Aragon recommends that enterprises should invest in Micro Video platforms and now Atlassian just became a major supplier of this capability. Developing.
Hear From VP of Research, Betsy Burton, LIVE on Monday, October 23rd at 10 AM PT | 1 PM ET
Decoding the Role: AI Architect vs. Solution & Application Architects
Adopting AI-enabled technologies is as much a people, process, organization, and strategy issue as it is about technology. The best AI-enabled solution will go nowhere if it doesn’t address a future-state business need and is accepted by users. Adopting AI-based solutions requires outside-in customer, user, and business thinking; not inside-out technology first thinking. Adopting AI requires a business and future-focused architect to help guide the integration of people, process, information, solutions and AI.
- Why is an AI Architect Needed?
- What are the needed Skills and Responsibilities of An AI Architect
- How is an AI Architect Different from a Solution or Application Architect?
