Especially in this environment, people need to know what it’s for. And then we’re coupling that with this — we’ve really gotten very good in the last year, and I think getting better still at the kind of TCO and ROI story. What is it that you’re getting out of this? I think all of that helps you kind of continue to expand in an account in a way that the customer feels good about and wants to accelerate rather than something that they see as a problem that has to be solved.
Eric Heath: Okay. Thanks Jay.
Shane Xie: All right. Our last question goes to Fred Lee with Credit Suisse. Fred?
Fred Lee: Hi Jay, Steffan. Thanks for taking my questions. And Shane, thanks for fixing my Zoom just now. Listen, my question is also on the pull forward of profitability. And big picture, considering how early we are in streaming you have the confidence that you’re addressing the market as completely as possible, not compromising any growth prospects? I know you’ve touched on this a little bit, but it sounds like you’re reducing some sales and marketing coverage. Is this — because if you think back to the GFC and you ask software companies then back coming out of 2008, the most they talk about the fact that they slowed down their investment. So again, the question is just around your confidence level that this is the right thing to do.
Jay Kreps: Yes. What gave us confidence was just looking at it project by project and investment by investment in a very thorough way. And having, I think, a very clear picture of what we want the company to be in a year, but also in three years and five years and making sure we can solve for that we have enough people to go do it. I think you could look at this the other way. Companies that have been on this very fast growth trajectory, there is some opportunity for optimization. If we were cutting 20%, I think we would be giving up quite a lot, right? Cutting a little bit, I think, makes sense given the environment. It’s a hard thing to do. It’s hard to have people leave the company, but I think it makes sense given the larger environment. And I think it’s possible to do that without making big sacrifices in terms of what we need to build and the product that we want to have and also in terms of how we want to go to market and where we want to be set up to expand.
Fred Lee: I see. And then just on the product side, I know it’s new. But can you talk a little bit about some of the early adoption trends of Stream Design and Stream Governance?
Jay Kreps: Yes. Yes. Yes, we’ve seen great results. They’re a little different, right? So Stream Governance is a paid offering, the Stream Governance Advance that we just announced. And Stream Designer is free. So customers just use it, it accelerates their usage of ksql, of connector, of Kafka itself. And so — yes, we’ve seen a ton of early adoption of Stream Designer. That’s been very exciting for us to get — to see people playing with this. We think that, that kind of easy to use interface is one of the keys to really stream processing go broad, whether it’s with ksql or Flink or whatever. That interface on top is a really critical investment for us that makes this stuff really easy to deploy within customers and kind of take the stream processing area beyond these apex companies that have already really gone big with it.
