Rouven Bergmann: No, no, no. I think, we purposely — the chart that we have on the cloud adoption across our portfolio is more conceptually and as a framework. The 3DEXPERIENCE platform as you know drives the lion’s share of our organic growth in the next plan. And, of course, with this we are building our foundation to the cloud transition of our installed base and our industrial clients through the 3DEXPERIENCE platform who have — were starting to — who are selecting parts to start natively in the cloud and others that will transition at a certain point in time based on their priorities. But now for them it’s important they want to secure with these transactions the next three to five plus or 10 years with us. And therefore they need to have a stable platform.
They need to build their road map, but they want to have a trusted and reliable partner in this. And of course the cloud is — transformation is centered to that. This is why this hybrid flexible model is so essential on this transformation and it gives us the visibility. As it relates to Centric and Medidata, you know, the Medidata performance this is temporary and it will accelerate. We will see that already in 2024. And for Centric, we see very good — very strong performance, and increasingly also with the cloud. So — from the perspective of the 3 billion, I think we are well underway. And we are building the foundation for that to continue to grow, our cloud subscription revenue. And I already expect in Q4 to shape compared to what we reported in Q3.
Michael Briest: Okay. And then just finally on MEDIDATA, the sales force a couple of days ago announced the clinical cloud, including one on operations, and I’ll read it as it helps life sciences set up and execute efficient trials both traditional and decentralized better support participants clinical site studies and sponsors. Obviously, it’s very early, but are you concerned about them as a competitor? Do you know the scope of their ambition?
Pascal Daloz: I can take it if you want Rouven. I spoke with them so to what they are proposing is the infrastructure-as-a-services to give some computing power and storage capacity to us the massive clinical trial. But they are — they have no intentions to move to the clinical trial operations the way we do it, which is equipping all the patients with the systems to collect the data, to manage the record, to do the certifications, to manage the site, the enrollment of the patients, the report for the FDA which is a domain of expertise by itself and they do not have this ability. However, as you may know many of the large pharma are already using Salesforce for the commercial activities. And you remember they — basically they terminate the contract with one of our competitors, who has developed a vertical application on this front, with them on their platform.
And just because they have the common infrastructure-as-a-service, there is certain time benefit to use AWS as an infrastructure for the commercial activities and the clinical trial. But again, not on the application level neither on the platform level much more as an infrastructure.
Michael Briest: Okay. That’s very clear. Thank you, Pascal.
Pascal Daloz: You’re welcome.
Operator: Thank you. Now, we’re going to take our last question for today. And the last question comes from line of Laurent Daure from Kepler Cheuvreux. Your line is open. Please ask the question. Excuse men, Lauren, the line is open. Please ask your question.
Laurent Daure: Yes. Thank you. Thanks for taking my question. A few last ones, if I may. One is on the MEDIDATA business you are kind enough to share with us the bookings the retention rate, I was just wondering how much time it takes to go from bookings to sales growth because between the 120% retention rate, 20% booking growth and only 5% growth would be helpful to understand a bit better the mechanics, and how much time it takes to convert? The second question is very clearly on BIOVIA. When do you expect the transition to subscription to end and to — not to be a drag anymore? And my final question is on the competitive landscape. So basically, you are looking to continue to win market share in clinical trials. But who do you win up against? And who are the losers in that market, do you think? Thank you.
Bernard Charles: Okay. Laurent, I said the first one. So you see the overall fundamentals of the business for MEDIDATA continues to be very healthy. We renew with our existing clients. When we renew, we expand. And of course, these bookings are carried forward into our backlog that we recognized over time. That’s one part of the story. The other part, we addressed earlier today and over the last weeks as well in discussions, and I know you’re familiar with this, but I want — I have to repeat it here, which is the fact that we have some part of our business, which is volume dependent, which goes through our CRO partners and as these volumes are compressing, they are affecting our revenue that we can book. And this is really what right now the counter effective we see on converting overall our bookings to revenue because you have, of course, on one side, you have the growth, which is coming from the new bookings that are growing very, very well.
But at the same point in time, there are certain studies ending, where we stopped the revenue and the net of it has resulted in Q3 of 5% growth. But keep in mind, the baseline in fact, of Q3 2022 was very high with 17% growth, and that will be different in Q4 and then, of course, in 2020, 2024. So as we said, Q4, there’s a number of significant deals in front of us. And once we consolidate our bookings for the full year, then we create a backlog for 2024, and we know the conversion of this into next year and the associate and there’s a citing revenue growth. That’s the model. I don’t know, Pascal, do you want to address the valuable point?
Pascal Daloz: The value, yes, I think we are starting to be close to the end of the transition. So if I have to guess, it’s probably an additional — a little bit less than a year, before to have almost complete the transition. And the last point, which is related to the competitive landscape. As you may know, we are acting in three sub-segments in the clinical trial. One is really the traditional BDC market, where clearly, we are gaining market share still against our hard curve, remember, they are not only being the incumbent, but they used to be the one having the largest market share. In the decentralized clinical trial, I mean, the landscape is much more occupied by startups. And one of them is so-called [indiscernible] and we are getting against them significantly at a point whereby we are rescuing some of their trial right now, being in danger because they have hard time to deliver.
And in the AI space, it’s much more, I would say, embryonic the competition because you remember, you need to have the data set for this. And we are one of the few companies having the large data sets. And the key competitors, even if we cannot call them competitors, how much more co-competitors, the CLOs [ph] because they are the ones also making some analytics using more and more AI in order to leverage the data they have collected also. But we are partnering with them to import them to do it. So that’s how we are continuing to gain market share along the three subsegments of the market.
Laurent Daure: Do you have — a very last point but do you have in this market a lot of clients that are using not just one supplier, or is many of them is concentrated?
Pascal Daloz: No, no, many of them. I mean it’s — Life Sciences is not like aerospace or the transportation and mobility sectors. Many of Life Sciences company, they have a highly fragmented information systems and they are using different point solutions. The platform concept, which is really the one we are pushing in this industry is pretty new. So — but what we can say is on all the three pillars I just mentioned, you will always have one providers, one software providers, which is leading the pack. But it’s very rare when everything is standardized on this. So you have a coexistence on many things. And there is a reason for that, because the trial is nothing more than the project base if you want. You have a starting point and end point, and you can use the system the time of the trial and use another one for another trial.
