Cristopher Kennedy: Great, thank you.
Operator: [Operator Instructions] Our next question will come from Ken Suchoski with Autonomous Research. You may now go ahead.
Ken Suchoski: Hi, good morning. Thanks for taking the questions. Maybe just a follow-up on some of the questions from earlier around free cash flow and margin expansion. Can you guys just comment on how the shift to the cloud impacts your overall cost structure from an OpEx versus CapEx perspective? I guess said differently, where should we expect to see the increase in cloud vendor and cyber security cost flow through and what are some of the offsetting factors to that as you continue moving away from the on-prem offering?
Mimi Carsley: Thanks, Ken, for the question. So I would say at a high level, as people can migrate from on-prem to cloud, they do so at essentially like a net neutral to the FI institution, but a much higher revenue to Jack Henry. And you might say why are they paying us more of that on that, it’s because they are now saving from having to support their whole – own infrastructure, their own security, their own staffing. And so it’s a way for the FI to focus on their core value of engaging and serving their account holders and members and allowing us to help them with this element. When that happens, it’s a very minimal infrastructure additive infrastructure and people-related costs. Yes, every once in a while you’ll need a new rack or new server, but more so that it have comes at a very healthy margin.
So that’s been a tailwind, that’s been occurring for many years, we expect it to still have probably a seven-year to eight-year runway. And then on top of that, we’ll see how the pace of moving to the public cloud and continues to improve that or leapfrog that as I said previously. So that helps from a margin perspective, you will continue to see us invest in maintaining and upgrading our own data centers – potential data center we have with partners. You’ll see some of that cap spend, kind of, for example, next year, that’s part of our free cash flow. There should be roughly probably $20 million in data center-related infrastructure that we’re doing. So you’ll see that probably in chunkiness of times when we’re doing a big overhaul or move of a data center, but the year-in year-out is a modest investment.
Ken Suchoski: Okay, great, that’s helpful, Mimi. And then, I just had a question on the early retirement program that you’re pursuing. Can you just talk about your headcount growth plans over the coming years? Is this of program that’s more of a one-and-done type of deal? I mean overall headcount growth – overall headcount actually go down after this program is completed. Any thoughts there would be great.
Mimi Carsley: Yes. So it’s only pertains to people who meet that criteria and I noticed no one said the full name, everyone loved the short name. I love saying Voluntary Early Incentive Program because it’s a great name. But only a small percentage of our population is eligible. It ties both the age and tenure of the company. So roughly, we probably have around 160 employees out of our over 7,000 employee population that are going to participate in it. So it doesn’t create any significant changes from a headcount perspective. And then next year, we’re going to continue to invest in our people and hiring where it’s needed in the business, but you won’t see huge growth numbers next year. Greg?
