We’re learning a lot. Obviously, the demand is incredibly strong. And we’re seeing what our — where we’re playing in that market and how we’re going to grow it and how we’re going to need to add to the capacity footprint to support that growth, not just in terms of buying servers, but the physical imprint and are looking to make decisions on that as we get into next year.
Patrick Walravens: All right, great. Thank you.
Operator: Our next question comes from the line of Jim Fish from Piper Sandler. Jim, please go ahead.
Unidentified Analyst: Hey, thanks. This is Quinton [ph] on for Jim Fish. Thanks for taking our questions. First, we’ve seen significant product launches in the, call it noncore compute side of DigitalOcean with storage with and Managed Kafka kind of the most recent ones. Can you talk about how the team is thinking about bundling or potentially packaging those noncore compute with maybe compute and Paperspace coming on and how we kind of can adapt to some of the go-to-market motions with that?
Yancey Spruill: Well, we’ve incorporated some of the — for combined customers, some of the feature functionality, security and other tools that make it easy and seamless across the board to use the AI and the standard products. I think bundling some of the items that I highlighted, scalable storage, the premium droplets reflect this concept of bundling, which we’ve been talking about for a year to two years with investors that is a real opportunity for us to — as we learn more about customer use cases in industry verticals, the decoupling of compute from network bandwidth and storage is a key theme that we keep hearing and security and other attributes of the product set. And so I think having a strong foundation now with standard and AI compute strong foundation in bandwidth and security and other capabilities in storage, it’s giving us the building blocks to be able to do bundling and unbundling to better meet our customers’ needs as we highlighted today with the recent launch of scalable storage.
If the use case needs more storage, but doesn’t need more compute, let’s give them that option, and that’s a more efficient growth path for customers. So I think that’s going to be a continuing theme. And as we get into next year, we’ll have more to say about sort of more integrated product bundling as it relates to both AI and standard compute. But that’s certainly the process of bundling in packaging is a pretty significant opportunity for us.
Unidentified Analyst: Makes sense. And then, obviously, you talked a little bit about wanting in the search for a new CEO, you’re wanting a leader that has the kind of core cloud experience. But as you think about kind of the skills of the background, are you looking for someone with more technical background or are you looking for an operational or sales kind of leader? Maybe any sort of color you can give on the fact like underlying skills would be helpful.
Yancey Spruill: Yes. The Board is very engaged right now in finding a CEO. As we’ve described in the prepared remarks. It’s an active process. It’s a little bit a process, but it’s moving with as fast as possible without sacrificing the screens needed to canvass the market. There’s not a time line to announce anything and we sort of spoke to — we’re clearly looking for somebody with cloud experience, but I’m not going to speak any more to the process or to the candidate pool beyond that.
Unidentified Analyst: Got it. Thank you.
Operator: Our next question comes from the line of Kingsley Crane from Canaccord Genuity. Kingsley, please go ahead.
Kingsley Crane: Hi, thanks for taking the question. We noticed on Cloudways website that no longer offers infrastructure services from SMB cloud competitors like Volt [ph] only including options for public clouds like AWS and GCP. So are you actively converting customers over DigitalOcean infrastructure? Is this primarily a new business dynamic?
Matt Steinfort: It’s mostly a new business dynamic. We still have such to support customers on each of those platforms. But from a go-forward basis, we still offer the options to go multi-cloud through the hyperscalers or through our platform. But we continue to support partners that drive opportunities through some of those other providers. And clearly, we have a healthy installed base of customers that are leveraging other providers as well.
Yancey Spruill: That’s a change that was made earlier this year in Q2.
Kingsley Crane: Okay. Very helpful. And the second one would be, how is the momentum behind the Hatch Accelerator program? How important of the customer ramping mechanism has it become for you? And is there an opportunity to include Paperspace as part of the program?
Yancey Spruill: There’s certainly an opportunity to include Paperspace as part of the program and the Hatch program is something that’s been a part of the company for a long time, and – and as we look for ways to accelerate the business and drive more adoption through the self-serve funnel and it’s certainly one of the areas that we continue to invest in. But it’s certainly an opportunity to bring in both Cloudways and Paperspace into that kind of a program.
Kingsley Crane: Great. Thank you.
Operator: Our next question comes from the line of Jason Ader from William Blair. Jason, please go ahead.
Jason Ader: Yes. Thank you. I just wanted to ask about the go-to-market strategy.
Rob Bradley: Jason, we can’t really hear you. Can you speak a little louder?
Jason Ader: Is that any better?
Rob Bradley: Much.
Jason Ader: Okay. Sorry. I was asking about the go-to-market strategy and just as you look out, especially over the next couple of years, how would you frame sort of where you’ve been, what you’re doing now in terms of maybe some changes and then where you want to go just from an overall go-to-market standpoint? Because I know you’ve been very much sort of kind of bottom-up driven historically.
Yancey Spruill: That’s a good question, Jason. The self-serve funnel has been the primary vehicle for adding new customers as you think about net new logos. Clearly, the NDR drives revenue growth from the cohort. But in terms of driving new go-to-market around acquiring new customers, it’s been primarily through the self-serve funnel. And as we said, it delivers a very healthy, kind of, call it, in the $33 million to $35 million range of new revenue. We’ve invested over the past, call it, several years to try to expand the go-to-market channels to include more of a direct sales motion where we would target customers that are on some of the larger clouds and maybe at the smaller end of their customer base that where the improved customer service and more of a direct exposure to the company and ability to talk with customer service people would be attractive, also the economic it would be a cost savings and where the simplicity is valuable to them.
