There’s a lot of work to be done, a lot of deals to be closed. And one quarter of great execution in a tough macro environment, we obviously need to continue to build on that foundation and continue to deliver strong results in Q4 and then obviously through all the 4 quarters of fiscal ’24 as well. So we’re very thoughtful and realistic about — and focused on the need to continue to drive sustained execution over time. With respect to hiring patterns, before I talk about consumption trends, with respect to hiring patterns, we are investing in sales. When we took the actions that we did at the end of the second quarter or in the early part of the third quarter here, we were clear at that time as well that we see a long-term market opportunity, and we’re going to continue to invest in enterprise selling capacity, and that’s what we’ve continued to do.
But it is about driving thoughtful investments and not making investments with lots of experiments and high-risk investments, but investing diligently and investing in areas where we know we can drive growth and where we are best positioned to drive that growth. So we’ll ensure that we have the right selling capacity entering fiscal ’24. We don’t want to compromise on the top line growth, but it is about ensuring balanced growth and profitability, particularly again, against the backdrop of the environment in which we are right now. And then finally, with respect to consumption patterns, that’s obviously something that’s hard for us to directly control in the near term. But what gives us comfort there is the strength of the commitments that customers are making on Elastic Cloud, which as I mentioned earlier, will eventually translate into revenue over time.
Operator: The next question comes from Raimo Lenschow with Barclays.
Raimo Lenschow : A quick question on cloud versus on-premise. What are you seeing there in terms of behavior from customers at the moment in terms of like — obviously you’ve seen the cloud numbers and decelerating a little bit. But like what are you seeing in terms of willingness to stay longer on-premise utilize? What the assets people have with cloud? Is that something that is a theme for you as it was pointed out by some of your competitors? Is that something we should kind of pay attention to?
Ash Kulkarni: Yes. I think it’s important to recognize that we’ve never forced our customers to migrate from on-prem, self-managed to cloud, right? We’ve always given it as an option. Obviously, we believe that Elastic Cloud is the best way to experience our offerings. But at the end of the day, customers have that choice. We’ve seen strong commitments, as Janesh called out, both in self-managed and in Elastic Cloud. In Elastic Cloud, obviously, that translates into revenue as consumption ramps up. And typically, when we sell a contract, it takes some time for customers to start bringing data onto the cloud platform. And since we recognize revenue only on consumption, that just takes a little bit of time to show up. But fundamentally, we’ve been seeing good traction.
And in our annual cloud or our sales-driven motion, we are definitely seeing good momentum in cloud. So the things that you mentioned, we haven’t explicitly seen that in any meaningful way, and it might just be because of the fact that we’ve never forced people to move in one direction or the other anyways.
