And in some cases, there are limits to what they can optimize. Having said that, the way we look at it is if a customer is trying to optimize, at the end of the day, we want to make sure that our consumption-based pricing model makes it possible for them to do that optimization. Because what we’ve seen over and over again is when customers see that we are able to provide that kind of value to them and the fact that we have a platform that is both open and flexible that they can use to do multiple use cases, it incentivizes them to bring additional workloads to use us for additional kinds of use cases. And some of the things that we have seen in terms of customer commitments reflect that, right? Those customer commitments are because customers believe that they can do more with Elastic on our Elastic platform.
And so although there might be for the existing use case, there might be some optimization in the near term, we believe that it makes us not only a better partner but able to take a larger share of their overall spend over time. So that’s how you should think about it, and that’s effectively what we’re seeing.
Ittai Kidron : That’s helpful. And then, Janesh, I want to kind of dig in a little bit into the commentary on the macro and execution. It seems like you’re not calling out execution as an issue. This is purely a macro call. And I’m just trying to tie that into your ’24 guide, meaning, under the assumption that your salespeople are as productive as you expect them to be and under the assumption that their capacity since our revenue is still growing, their capacity to do more is slowly dwindling? I’m just trying to think of the team’s guidance for ’24. Why would that assume a macro environment that’s weak? Why could not that also assume that you’re at a point where you’re underinvesting really in your growth opportunity? Wouldn’t that — I mean clearly, you rationalized headcount.
I would think — I don’t know, but you haven’t mentioned, but where they’re hiring in ’24, I would suspect it will be lower than ’23 from the current point of view. So again, why wouldn’t we think that the ’24 is really just underinvestment rather than macro impacting you?
Janesh Moorjani : Yes, Ittai, it’s a great question, and there’s obviously many moving parts in there. So let me try and unpack that, and I’ll talk about the macro about our sales execution and consumption patterns and also where we’re making investments. So if I think about the macro, to start with, as I mentioned, we’re not assuming any change in the macro. I think it would be hard for us to call that. So we will just see how the macro evolves broadly, and that’s why we provided a relatively wide range at this point that we’ll then formalize into a narrower range on the next call. In terms of sales execution, yes, the team executed really well here in Q3, and we’re actually proud of the way we executed. That said, Q4 is our biggest quarter.
