Cloud shift is Altium’s ‘Netflix moment’, says Aram Mirkazemi

Pivoting to the cloud, ASX-listed software maker Altium is hoping to emulate Netflix’s global success.

L to R. Richard White, WiseTech Global, Anthony Eisen, Afterpay, Chris Vonwiller, Appen, Aram Mirkazemi, Altium and Kirsty Godfrey- Billy from Xero at the ASX New Technology Index Launch. Picture: John Feder.

Listed design software maker Altium is shaking up its business model and executive team, with chief executive Aram Mirkazemi declaring that this is his company’s “Netflix moment”.

Altium, one of the ASX’s glamorous so-called “WAAAX” tech stocks, told investors in a note on Monday that strong early adoption of its Altium 365 product had led its decision to shift the company more strongly towards cloud-based systems and processes.

A leadership shake-up will accompany the structural shift.

Executive director Sergey Kotinsky has been promoted to the role of company president, while chief financial officer Joe Bedewi has stepped down to become executive vice-president for corporate development and external affairs.

Martin Ive will become Altium‘s new chief financial officer, joining from professional services outfit Grant Thornton.

Altium had been hit hard by COVID-19, due in part to small businesses preserving cash.

Altium chief executive Aram Mirkazemi

“The launch of Altium 365 marks a significant turning point in Altium’s journey,” Mr Mirkazemi said in a statement. “We are deep in execution mode toward our dominance and transformation goals. This has led to the creation of a new organisational structure to support us on this journey and to drive the high performance required to achieve our goals.

“I refer to this as Altium’s ‘Netflix moment’, which is commonly referred to in the hi-tech industry as a hard pivot to the cloud.”

He said Altium would split its structure between cloud and software, with each getting its own leadership and organisational structure.

The company is maintaining its goal of 100,000 subscribers by 2025 and dominance of the Printed circuit board (PCB) design industry.

“We are excited to see Sergey appointed to the new role of president at Altium,” chairman Sam Weiss said in a statement.

“Sergey has been the driving force behind Altium’s technology development that underpins the company’s bid for market dominance and to transform the electronics industry. Under Sergey’s leadership, Altium’s PCB design tools have become world class and Altium 365 is set to revolutionise the way that electronic products are designed and manufactured.”

Shares in Altium closed up 0.4 per cent on Monday, at $35.23, giving the company a market valuation of about $4.6bn.