Jeremiah Fleming: Those are good questions. Let me address your last question first. Yes, there’s a drop dead date and the dead date is the end of the calendar year. And this time, we understand if they don’t make their date, they’re going to have to pay for the data center, all the data center costs that they do not migrate out of. Now Neil, you’ve been around for a while, so you know that there was a drop date last year, too, right? But I think this year, there’s a bigger onus. But the nice thing now because we have advanced both our UCaaS platform and our CCaaS platform when they migrate these customers from their old data center that they’re shutting down to the new data center, the plan is for them to upgrade to our new platforms and that will represent an incremental revenue opportunity for us.
So it’s not just like-for-like. When they upgrade to our new platforms, they’ll take on the additional functionality that we deliver. So even though I’d rather have them getting a whole bunch of new customers, even converting their existing customers, well, it’s expected, I should say, expected to generate additional incremental revenue for us.
Neil Cataldi: Okay. Great. Just one more. Regarding the AI commentary and the, I guess, the products and development with Fiserv, is it reasonable to expect revenue from these initiatives in, say, the next 12 months?
Jeremiah Fleming: Yes, we fully expect that, Neil, and how fast it depends how fast we can go with this rollout plan. It’s a bit of a crawl walk run. I obviously want to run as fast as I can. But yes, absolutely, that’s the idea to start getting something out — we want to get something out there that people will start nibbling — we get — it’s the Trojan horse. Let’s get them using the basic stuff, and we’ll just keep growing it. So, yes, I mean I can’t say it will be this next quarter, probably it will be some time — it will definitely be — we should see some bases definitely because I can’t control Fiserv’s sales activity, unfortunately. But we should see revenue — incremental revenue kicking in first half of ’24.
Neil Cataldi: Okay. Thanks so much, Jerry. Talk to you soon.
Jeremiah Fleming: Bye. Thanks, Neil.
Operator: [Operator Instructions] The next question comes from Jason Revland, Private Investor. Jason, please proceed.
Jason Revland: Hi, Jerry. Thanks for taking the questions today. Just got two. The first is on the AI revenue opportunity with Fiserv. That incremental revenue, would that be considered very high-margin revenue just for context on the other stuff you have as well.
Jeremiah Fleming: Yes, that’s a good question, Jason. Nice to meet you virtually here. The — our game plan is going to be a little different than as you’re probably aware and I imagine most of the folks on the call have heard of ChatGPT, right? And everybody can build ChatGPT and it does everything, but make your dinner and clean up your room after you’re done. But our focus on financial services, we’re going to leverage integrations with Fiserv. Because we’re dealing with community banks and credit unions, they do not have staff that can manage a product like that. So our incremental — so I’m going to give you a long answer, but the answer is going to be yes, okay? Long answer, right? So our plan is we’re going to build this ChatGPT for the customer, leveraging all the data they have, but things change.
Who is going to manage that and make sure it’s up to date. That’s what we’re going to do. We’re going to offer that as a managed service much like if anyone is familiar with SEO, search engine optimization, where these web companies manage your website and make sure it’s up to date and your search results are what you expect. So we’re going to do the same thing with ChatGPT and yes, that should be very nice. That should be a contributor to our gross margin, not a detractor.
