Brad Sills: Understood. No, that’s great. And then one on Confluent Cloud please. Exiting the year at 50%, just a tremendous trajectory. I think in fiscal ’20, you exited the year at 15%. So just a remarkable result there on the Cloud. If you could just articulate for us why have you seen such success in the Cloud? What is it about Confluent Cloud versus, say, other categories where we’ve seen perhaps a slower ramp in public cloud infrastructure and these types of mission-critical workloads that you guys are supporting?
Jay Kreps: Yes. One of the things that’s easy to miss is how high the bar is for a cloud product. And so if you look at our investment, you would have seen a pattern where you’re like, they’re putting a lot of work into this thing, and it’s driving some small — we were doing that for many, many years. And the reason for that is that this kind of cloud infrastructure, like a lot of the iceberg is below the water. And until you kind of meet certain minimum criteria in terms of security and scalability and operations and availability in different clouds around the world, it’s just very hard to capture the market. And so coming into an area that’s a big wall to climb, once you’re on the other side of the wall, then it protects you, I think, from competition to make them up and want to do the same thing.
So I think it’s been a great thing for us. But — yes it was I think just kind of reaching that critical threshold. And then in terms of how we operated that led to that, I would say it was mostly just full commitment, like we myself, some of the other people who founded the company or joined earlier had a background in running kind of data systems internally as a service. And we just kind of knew that, that was going to be the model in the public cloud that there was no future for licensed software as the delivery model once people have access to these kind of cloud services. So we knew it was kind of do-or-die on the conversion. And so we leaned in early on in a very significant way where really the whole engineering team moved to that. Every cloud metric was kind of elevated in importance to match a much larger number on the software side of the business and really kind of held to that internally, even though we’re really pushing one part of the business up.
And I think that was necessary early on. It’s very hard to get what’s effectively a very different product going in an early company because you have to effectively build two successful products. So I think that helped us kind of get it to that whatever escape velocity where it could then kind of grow and capture a lot of the opportunity that was, I think, always there for folks operating in the cloud.
Brad Sills: Makes a lot of sense. Great to see. Thanks Jay.
Shane Xie: All right. We’ll take our next question from Rob Owens with Piper Sandler, followed by Guggenheim.
Rob Owens: Thanks Shane, and good afternoon, everybody. Obviously, seeing pressure worldwide here, but just curious if there was anything unique to call out positive or negative from the various theaters that you’re participating in?
