Dev Ittycheria: Yes. So I’ll make a couple of points. Karl, you’re absolutely right, there is a lot of focus on data because with AI, data in some ways becomes the new code, you can train your models with your proprietary data that allows you to really drive much more value and build smarter applications. Now, the key thing is that it’s operational data because with applications, this data is always constantly being updated and for many customers, most of those applications are right now running on legacy platforms, so that operational data is trapped in those legacy platforms. And you can really do a batch process of e-tailing all that data into some sort of warehouse and then still be able to leverage the real-time use of that data.
That’s why customers are now much more interested in potentially modernizing legacy platforms than they ever have before. I would say, Karl, to your second part of your question, I would say it’s still very, very early days. We definitely believe that this will be one of the largest long-term opportunities for our business, but we’re in the very early days and as I’ve said in the past, there is a risk of overestimating the impact of the short-term but underestimating the impact long-term, we definitely think this is a long-term impact.
Karl Keirstead: Okay, great. And if I could ask a follow-up to Mike on a different subject. Mike, you had talked on the last call a little bit more about this mix-shift away from multi-year Atlas commits and you were pointing to that as a reason for some of your metrics like DR and I think even cash flow to come under a little pressure. This quarter I see DR is still under pressure, cash flow was a little bit better, can you maybe revisit that phenomenon and describe how it’s impacting some of these metrics?
Michael Gordon: Yes, a couple of things. As we’ve said from the beginning. Some of those like calculated billings are deferred revenue metrics aren’t super helpful or don’t provide a ton of insight in terms of how we run the business. We’ve also talked about how over the last couple of years, one of the things we’ve been trying to do is reduce friction for the sales force. Some of that includes reducing the emphasis around upfront commitments. And so that helps accelerate you know lending new workloads and things like that and that will flow through or does flow through the financial statements as less upfront deferred and things like that. And so — but allows us to sort of synthetically cover more ground from a salesforce perspective.
And so you do see that, continue to go through, we shared the statistics last quarter that Atlas revenue growth last quarter was 38%, but dollars of committed Atlas declined 15% year-over-year, just as one way to try and help dimensionalize it, we also talked, I think, earlier in the year about how roughly 80% of Atlas doesn’t flow-through deferred and so I think all of those data points help kind of lineup to explain the rest of what you’re seeing and why that’s not sort of helpful forward-looking metrics like it might be in other companies. It doesn’t kind of give you the insight that maybe people are used to or hope that it will provide.
Karl Keirstead: Yes. That’s clear. Thanks a lot.
Michael Gordon: Thanks, Karl.
Operator: Thank you. One moment, please. Our next question comes from the line of Brad Reback of Stifel. Your line is open.
Brad Reback: Great, thanks very much, Michael, maybe following up on that last question in your commentary. At what point should DR stop being a headwind from a financial perspective, when should it stabilize or is this a multi-year trend as you kind of bleed it down?
Michael Gordon: So I’d say there are a couple of things, obviously it’s not something we guide to, it’s not a key thing that we focus on, but I think the trends will be. You’ve got sort of two factors, one is overall Atlas mix, right, and so to the extent that Atlas continues to grow, that will provide a headwind on this dynamic. And then similarly, even within the current Atlas footprint, there’s this historic commitments that we need to run-through renewal cycles and everything else and so I think this will take a little while still to play out.
Brad Reback: Great. And then switching gears. Dev, as customers begin to trial — excuse me, some of these Copilot code tools, we’ll say, what type of feedback have you gotten from them as it relates to the pace with which they’ve been able to reduce net new workload time-to-market. How much faster or efficient are customers getting using these tools?
Dev Ittycheria: Yes. We get different answers from different customers, really depends on which tool, they’re using without commenting on who is better or who is worst, we definitely see a difference in the quality of the output between different tools. I think it’s going to take some time for these tools to mature. So I think we’re seeing a lot of customers do a lot of testing and prototyping. I would also tell you that doing a lot of this on internal facing applications, because there’s still lots of questions about IP rights and what is potentially copyright-able then ultimately licensable, they offer this as a shrink-wrap software or service to their end-customers. So, we’re seeing more of this work on internally facing applications.
But the productivity gains, really do vary by tool and also very — do vary by the sophistication of the app being built. So, it’s hard for me to give you a real number. I know there are people out there to toating 30% or 40% improvements. But it really depends on the customer, and the use-case and the tool that they’re trying to use. It’d be hard for me to give you a specific number.
Brad Reback: Okay, thanks very much.
Dev Ittycheria: Thank you.
Michael Gordon: Thanks, Brad.
Operator: Thank you. One moment, please. Our next question comes from the line of Tyler Radke of Citi. Your line is open.
Tyler Radke: Yes, thanks for taking the question. So, earlier this quarter, you hired Mark Porter’s replacement, Jim Scharf from AWS, a lot of experience in the database industry. Can you just talk about some of his priorities, what you’re kind of accelerating in terms of the product roadmap to sell to larger enterprises?
