Ashutosh Kulkarni: Yes. Hi, thanks for the question. So, look, our position in security analytics or SIEM, as you called it, remains very strong. So I talked about the fact that in the prepared remarks that we had a lot of success in the quarter. And we’ve seen this in the past several quarters of getting customers to consolidate onto our platform, displacing incumbents. And we are seeing the benefit of both the capabilities, the scale functionality in our platform, you know, some of the newer GenAI functionality through the assistance that we’ve delivered. And it’s really helping us compete very, very effectively. And just the market dynamics seem to be playing in our favor. So we are very excited about it and I feel very good about the future.
Rob Owens: All right. Thank you.
Operator: The next question is from Andrew Nowinski with Wells Fargo. Please go ahead.
Andrew Nowinski: Okay, thank you. Nice quarter. I just want to ask more specifically about ESRE. I know it’s only available in that platinum and enterprise tiers. So I’m wondering, are you seeing customers already upgrading to those tiers or any sort of uptick in new logos that are landing with those two tiers?
Ashutosh Kulkarni: Hi, Andrew. So we’ve generally seen a steady increase in the adoption of our higher tiers over time, particularly on the enterprise tier, and we continue to expect that this will help drive growth for Elastic cloud looking ahead. You know, as I think about all of the additions to the tiers and what drives customers to the higher tiers, clearly a lot of the generative AI functionality is helpful in that regard. The security and observability AI assistance will only be in the enterprise tier. But as a more general matter, we’ve added features to our higher subscription tiers over time and done that. For example, ML is only in platinum, but even beyond that platform level, features like searchable snapshots is in enterprise.
So that’s consistent with our overall strategy to continue to provide more value and then monetize that value in the higher tiers and that’s been working quite nicely. As I mentioned, we’ve continued to see a steady increase over time in our adoption of higher tiers.
Andrew Nowinski: Okay, thank you. And then I just had a quick question on, as it relates to your vector search. I know you’ve had it for a number of years and I felt like, you know, where customers are actually storing their data in an Elastic data lake. It makes, maybe your vector search more appealing to them, specifically like a security use case. So I’m wondering, are you competing with MongoDB in vector search use cases, where they’re looking specifically for vector search?
Ashutosh Kulkarni: Yes. So look, when you think about what it takes to build generative AI applications, you know, vector search is a component of the overall solution, not really the whole solution. You know, so what we see is, when you’re building generative AI applications, you need effective connectors to build and bring all of this unstructured data into your environment. You need to be able to provide capabilities like semantic search and hybrid search and re-ranking capabilities. There is need for things like filtering, for providing geo-location, and often other kinds of personalization capabilities. All of these things that are all about relevance and context that go way beyond just vector search. And what we have seen is customers increasingly are looking to our platform because we have that complete breadth of capabilities that makes it possible for them to build generative AI applications on one platform.
Now, what I will say is that, you know, fundamentally in that space, we don’t see the database vendors showing up as competition. Now, there might be, you know, if all of your data is in a particular database, if all of your transactional data as an example is in a particular database, and you have some very simple use case, where you just want to search across some of that data and you’re using the native basic vector capabilities in that data store, you know, that’s very likely, and that’s frankly, you know, customers in a much simpler use case that we don’t really play in that space, right? That’s very native to that particular platform. For us, we are going after the much broader market of customers that are trying to build generative AI applications and that requires way more than just a vector data store and that’s what we provide, soup to nuts.
Andrew Nowinski: Thank you.
Operator: The next question is from Shrenik Kothari with Robert Baird. Please go ahead.
Shrenik Kothari: Hi, thanks for taking my question and congrats on the great execution, Ash and Janesh. Welcome back, Anthony. So Ash, you touched upon evolution in Elastics go to market strategy before shift towards more efficient and unified vision for customer engagement and partnerships in light of the recent realignments, including the consolidation under the CRO. And then today, you highlighted generative AI beginning to positively impact the go to market around surge. Of course, you spoke about relationships with major hyperscalers and beyond that, investments into broadening the Global Reach User Conference. Can you talk about which of these factors like the Hyperscaler Partnerships User Conference directly spreading awareness are bigger drivers currently? And in terms of the strategic realignment of go-to-market, how are you positioning effectively in the AI landscape now? Thanks a lot.
Ashutosh Kulkarni: Shrenik, thanks for the question. What I will say is that, look, all of the things that we are doing matter, right? Because at the end of the day, our ability to best satisfy our customers comes from the fact that we are able to provide them unique, differentiated, functionality with the integrations with all the ecosystem partners. And we have relationships with these ecosystem partners like the cloud hyperscalers that allow us to reach and service those customers very, very effectively. And our focus not just on commitments, but also on consumption, you know, all of that is paying off, right? So it’s about having a very cohesive strategy. And I’m very excited about the fact that the team has been executing very well. I’m very proud of the work that they’ve been doing, and we feel really good about both the second half of the year and the future.
