We need to look at the catalog to see maybe the customer changed from one plan to the other and what was the history of this customer. So, you need to aggregate this data, apply telco taxonomy and teach the model in a way that it can give a real answer, which is correct, in a very short time. So it’s not that you can sit and wait 40 seconds to see until you will get an answer. Building this infrastructure to be what we call a telco grade or carrier grade, efficient, correct environment, which is highly secure and have all the relevant data, it’s very complex. And this is exactly what we say that we could be the real enabler, because we know all the data, we build the right platform and made it can do this, and we know exactly what needs to be done to bring all this information from different sources in a way, but also in an affordable way.
I mean, it costs a lot of money to access the different LLMs, to do it also in an affordable way. This is a very, very heavy lifting. So, it’s not just you do like a simple API and this is exactly where we say that Amdocs is perfectly located or positioned to do this. Now, this is going to be eventually a relatively big project to put this environment in place and we believe that we have a lot of opportunities in this domain to be the main enabler of this technology.
Ashwin Shirvaikar: Understood. Understood. Thank you for that. The other question is with regards to that sort of look at the split of revenues by geography and there is the deceleration that you observe a little bit more so in EU versus North America. Do you mind going back and kind of reminding us with regards to kind of the specific thing that was leading you to the higher growth rate and is it — whether this is purely cyclical or was it kind of because of specific contracts?
Tamar Rapaport-Dagim: So, Europe for us for many years in the past was an underpenetrated region and in the last several years, as part of our intentional — international expansion, we focused on Europe, including let’s call it the classic part of Europe, as well as East Europe, in terms of penetrating into new logos and also solidifying our presence with some of our longer term European customers and moving to managed services. It was quite a challenge for us historically to convince European customers, giving different social demographic aspects to moving to managed services. And we kind of cracked the formula there, as well as the fact that they have a stronger focus on building their margin, which helped us move also some European customers to managed services.
I would say it’s both the fact that we are doing significant amount of modernization projects in the European market. Remember, most of the European carriers established their systems in the 90s and we see a modernization wave with the shift to the cloud, with a lot of drivers that are moving that, as well as shift to managed services of some existing customers that we have. So I would say it’s broad based. It’s not coming from one customer in particular. We are expanding into more countries. For example, several years back, we didn’t have almost any business in Italy. Now we are serving the three leading carriers in Italy. We are running a large scale transformation project for Vodafone Germany. We’re expanding into new logos in East Europe.
So it’s quite broad based in terms of the customers that are driving that. Amazing success in penetrating and expanding our relationship with the Hatchison Group in Europe. We talked last quarter about expanding there even farther, the managed services engagement. We are making progress on the modernization there. So it’s actually a very healthy and diversified growth story that we see in Europe.
Shuky Sheffer: Ashwin, with your permission, I want to go back to your first question.
Ashwin Shirvaikar: Yeah.
Shuky Sheffer: I think a way to explain it is similar. Remember that for some time, several years ago, we were talking about Amdocs’ position in the cloud and we are — we believe that we are going to be the leaders of taking the industry to the cloud. We are in the best position to do this. We have the technology, the consulting, the system to do it. I think in a way it’s similar to where we are in generative AI. It’s early days. Everyone is looking around to see what is the right thing to do. Everyone is experiencing different use cases, et cetera. But if you really need it to carry a great, heavy, mission-critical system that supports your monetization, your care, this is where Amdocs strength. I think it’s very similar to when we talked several years ago about we say we are perfectly positioned to take the industry to the cloud. So I think right now we are really in a good position actually to enable this technology to our customers.
Ashwin Shirvaikar: Understood. No. It translates to multi-across. We get it. Thanks.
Operator: Thank you. [Operator Instructions] And this does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Matt Smith for any further remarks.
Matt Smith: Yeah. Thanks, John, and thanks everyone for joining, excuse me, the call this evening. As always, if you do have any additional questions, just reach out to us here in the IR Group and we look forward to speaking with you soon. Have a great evening.
Operator: Thank you, ladies and gentlemen, for your participation at today’s conference. This does conclude the program. You may now disconnect. Good day.
