Ash Kulkarni: Yes. So, the deals that actually ran into more approvals and so on weren’t necessarily tied to consolidation per se. So, we are not necessarily seeing a correlation between consolidation and deals taking longer, the fact that certain deals took longer because there were more approvals needed. And by the way, that is something that our sales teams are now actively accounting for. We sort of know that, that’s going to be, like I mentioned, more the norm, so we are sort of accounting for that. But those were in regions and countries where the strengthening U.S. dollar has given those customers reason to just be that much more thoughtful. And several of those deals actually came in into Q3 already. So, these were not deals that got affected in terms of us losing them from a competitive standpoint.
We did very well. It was just the timing of things. So, that was number one. The second is to the point of consolidation, we agree that consolidation is an opportunity. And that’s, like I mentioned, that’s something that we are really leaning into. And the field is actively having those conversations, right, because at this point, we see that the spend is something that’s on everybody’s mind, how do customers be a little more thoughtful about what they are spending on. And there is a natural desire to ask, how can I do more with Elastic, where else can I use you in such a way that my incremental €“ my overall cost of ownership comes down, and those are the conversations that really we are driving as sales plays now throughout our organization.
And that’s €“ I expect that, that’s going to be a greater aspect of what we do going forward. But I am not seeing any correlation between that and deal cycles because the change that we saw in deal cycles, that was somewhat we are talking on.
Matt Swanson: Yes. That’s extremely helpful. I guess the second part, just given that macro and given the cost sensitivity you mentioned, have you guys seen any changes in adoption around the free tier over the last couple of quarters or maybe this quarter, either customers migrating down or additional usage from companies that are in that new to Elastic?
Ash Kulkarni: We have not seen that. Matter of fact, one of the things that we have seen is people who might have been using the free €“ and I actually mentioned one of these customers. I referenced one of these customers, a government agency, in my prepared remarks. I mean what we are seeing is, as the economic environment becomes such that everyone is inspecting their spend, we are seeing customers actually think about the cost of managing things themselves and recognizing that they are better off with a fully managed cloud service as opposed to trying to install and manage everything themselves. So, we did see customers adopting some of our higher tiers, and we haven’t really seen any impact where customers are saying that they want to go to the free tier, simply because the moat is massive.
The difference between our premium tiers and the free tier is very significant. So, if you are using any of our advanced capabilities, giving all of that up is an extremely high hurdle. And we haven’t seen any of that behavior.
Janesh Moorjani: And then, of course, the other thing I would just point out there, Matt, is that on cloud, as you know, there is no free tier. Everything is paid beyond a couple of weeks of the trial period.
Matt Swanson: Appreciate the color.
Operator: The next question will come from Koji Ikeda with Bank of America. Please go ahead.
