Saturday, April 27, 2024

NSW taxpayer helping to fund Atlassian’s new office – but, will anyone be there?

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Kookaburra, ARR.News
Kookaburra, ARR.News
Kookaburra is a debonair master of the treeverse whose flights of fancy cover topics ranging from the highs of art and film to the lows of politics and the law. Kookaburra's ever watchful beady eyes seek out even the smallest worms of insight for your intellectual degustation!

Back in those dreary days of 2021 when we were still being locked down, Atlassian announced that its workers would need to attend at the office just four (yes, 4) times per annum. The remainder of the time they could work from home, a moving vehicle, a Tibetan monastery, a mystery island, a yacht, wherever, as long as wherever that wherever was had an internet connection and that they were in around about the same time zone as their fellow team members – so insomniacs could be anywhere really.

To quote from a SmartMoney article dated April 30, 2021 :

“Team Anywhere” is a new policy that will see the $80 billion tech giant’s 5,700 global staff work from any location in a country where Atlassian has a corporate entity.

The story went on to say that Scott Farquhar, one of the co-founders and joint CEO of Atlassian, had attended the office only three times in the preceding year.

More details on ‘Team Anywhere’ can be found on the Atlassian website here.

In the same SmartMoney story reference was made to Atlassian’s plans to progress with its planned new headquarters in Sydney.

What was not mentioned in the story was the involvement of the taxpayers of New South Wales in the project.

So, it came as some surprise to Kookaburra when a media release came from Alister Henskens – who appears to be minister for many things – Minister for Enterprise, Investment and Trade, Minister for Sport, Minister for Skills and Training, and Minister for Science, Innovation and Technology – announcing “Construction Commences on World-Leading Atlassian HQ at Sydney’s Tech Central”. Minister Henskens is quoted as saying:

In a fierce global skills market, on its completion the building will boost our market competitiveness and welcome 5,000 future technology and supporting industry jobs, in addition to creating over 800 construction jobs.”

The media release stated also :

Atlassian Co-Founder and Co-CEO Scott Farquhar said the company was adapting to a new way of work since COVID-19, with the new office to play a unique role as the company reimagines traditional office spaces and how work gets done.

Presumably most of that work gets done by members of Team Anywhere who are… well, anywhere else but Tech Central most of the time it would appear. Maybe we just have to reimagine that they are there?

Kookaburra then took a look at the NSW Government’s Tech Central website billed as “Australia’s largest technology and innovation hub [which] will provide 250,000 square metres of space for technology companies and affordable rates for startups and scaleups”, and which then goes on to reveal its vision (one always needs a vision):

Vision

Tech Central will provide up to 250,000 square metres of space for technology companies, including 50,000 square metres at affordable rates for startups and scaleups, in a connected location brimming with heritage, culture and activity.

A NSW Government funding package of $48.2 million has kick-started development and tech giant Atlassian is confirmed as anchor tenant. It will locate its headquarters in the precinct, bringing over 4000 employees.”

Hold on – didn’t the Smart Money article tell us that Atlassian has 5,700 staff globally? That is not many more than the 4,000 number quoted and close to the Minister’s figure of 5,000. Somewhat confusingly, Atlassian’s ‘Corporate Overview’ refers to a “team of 8,800+ Atlassians”.

Back in March it was announced that Atlassian had formalised its construction deal with ASX-listed property developer Dexus, which will have a 60-65 per cent ownership stake in the building. Atlassian would hold the rest and had agreed to lease the office accommodation for at least 15 years. At that time we were told that the building, to be known as ‘Atlassian Central’, would feature 33 commercial office floors predominantly occupied by Atlassian with at least 1,400 staff from across three Sydney offices. So, is it 1,400 staff? That is a long way from 5,000. Does anyone know the real number?

But then, Kookaburra has pretty well given up trying to make much sense of Atlassian’s computations.

In the latest Letter to Shareholders, Atlassian management states,

“We’ve hired over 2,300 Atlassians globally (over a quarter of our team) over the past year, 50% of whom live more than two hours from an office location”.

Also,

“After previously opening up New Zealand, as well as expanding within Canada and Europe, Atlassians can now work from anywhere within India.”

Could be a long daily commute to Ultimo.

In any event, no matter how many ‘Atlassians’ (or the ‘Humans of Atlassian’ as they are sometimes known) there might be, those same staff may well be in an ashram for 361 days of a year (362 in a leap year) as they need to attend at the office just four times a year.

So why has the New South Wales Government kicked-in $48.2 million to assist in providing an office for… people who won’t be there? Especially when, as Atlassian management states in their latest Shareholder Letter, they are “Running a software company with nearly $3 billion in revenue”. Should not Atlassian “kick-start development” at Tech Central (or is it ‘Atlassian Central’?) entirely with its own funds rather than be provided with support from the New South Wales taxpayer?

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