I don’t know if I’m prepared at this moment to give you any specific statistics, but it’s something that we could maybe look at adding down the line, just to give you a sense. But we’re happy with it. I think partners for us are also excited to deepen the relationship with us and work with us to make sure that the offerings are certified to work effectively with our cloud and our cloud update process, and that helps create confidence with our customers that these applications can be deployed efficiently and manage efficiently and maintained. And just as I said in the prepared remarks, adds to the overall value of the implementation. So overall, this has been a real focus for us as we shifted to cloud just because this is not unique to Guidewire, but sort of cloud-based platforms like this are easier to integrate to and it makes it easier for the partner ecosystem to augment the value of the core application.
We’re excited to see that continue to grow.
Kevin Kumar: Yes. That’s great. And maybe one for Jeff on the services or I understand kind of the revenue impact as you shift more towards your SIs and maybe some near-term margin pressure as you’re making progress there. But I guess how are you thinking about some of the sustainable margin profile of that or maybe longer term, I think you’ve talked about mid-teens in the past, but is that still kind of how you’re thinking about it, perhaps with the smaller internal services team?
Jeffrey Cooper: I mean, absolutely. I think this is going to look like a reversion almost to where we were pre-cloud as we focus more on targeted services that are done by our personnel and delivered at an attractive margin. Early in the cloud transition, we very much leaned into leading programs in a much more active role than was traditional for us. And I think that’s to be expected when there’s new capabilities that we’re releasing to the marketplace as the overall ecosystem is still learning those capabilities and how to implement and run those programs. And now we’re turning back to the orientation we had free Cloud, where the SI ecosystem will take the lead in most of those engagements. And the overall different revenue components of that means less subcontracted revenue, where we’re priming deals and subcontracting out the work.
There was also some discounting that was happening in the early days of the cloud transition that created cars from license revenue that flowed through services, and that’s becoming less and less noise in the financial model, which will make it easier to forecast and predict going forward, but we’re very much kind of working through that transition this year. I think the net result is a really positive outcome where we have a robust ecosystem that can help us deliver on the cloud demand that we’re all excited to see.
Kevin Kumar: Great. Thank you.
Operator: Thank you. Our next question comes from the line of Ken Wong with Oppenheimer. Please proceed with your question.
Ken Wong: Great. Fantastic. Jeff, you mentioned earlier some kind of DWP true-ups. Just wanted to understand what drove that. I mean I think we all see the sort of big increases in insurance premiums across a range of states. Is that something that could potentially trigger that type of an action. And then, Mike, on that same point, as you think about these big step-up in premiums, I guess, would you characterize that as healthy for your customer end market, for Guidewire, would love any thoughts in terms of how to think about those moving pieces?
Jeffrey Cooper: Yeah. So absolutely. As premiums grow in the industry, we price on basis points of direct written premium, so that will create a bit of a tailwind for us. When we can enforce those true-ups can vary contract to contract. So that’s something we spend a lot of time modeling out and assessing. But absolutely, that is a tailwind for us.
Mike Rosenbaum: Yeah, I appreciate the question. I would say absolutely, this is healthy. I think it may be sort of perceived as unfortunate, if you’re a consumer. But understanding the actual risks and the actual amount of risk that you are taking in whatever particular endeavor you are looking to ensure is very important. And there was an imbalance in the industry for a period of time. And as we’ve said on these calls a number of times, the industry is designed to assess that imbalance, work through that imbalance, change rates increased premiums so that it can get back into a healthy state. And I think we are seeing that unfold. And that is a healthy thing. Like, I said, it’s probably not, it’s certainly not enjoyable if you’re the premium on if the risk associated with your home or your car is deemed to be more than it was, but that’s just a fact of life.
And I think you can see that in the data. You see that in the risk characteristics that we help the industry assess with our products like HazardHub. And I think that it will help all of us make better decisions about the risks we’re taking with a truer more accurate sense of how much it costs to ensure that risk. And so yes, it’s nice to see that process unfold. Guidewire participates that, as Jeff described. But I do think, in general, it’s a healthy thing for the industry and for each of the state regulatory agencies to work through with industry partners and get to a more balanced insurance market.
Ken Wong: Got it. I appreciate the really thoughtful response. And if I can just sneak a quick one in on just the partner side. I think you mentioned partners leading services at a faster pace than expected. How much of that is just the — their ability to take the baton from you, guys, earlier than anticipated versus — I know Diego has been working to streamline the whole deployment process. How much of it might be just they’re able to kind of — you, guys, are able to kind of ramp your customers up a lot quicker?
