James Fish : That’s really helpful color from both of you. Maybe Barak, just to follow up. What are you seeing competitively in the CCaaS and WEM space, particularly any change around pricing and acceptance for more of that interactions-based pricing? And any color commentary for how you’re thinking about the second half pipeline for some of these 7, 8-figure sized deals, particularly in your financial services vertical that you guys are historically very strong with?
Barak Eilam : Thank you. So what we see in the competitive landscape is somewhat similar to things I’ve hinted or talked about in previous conversations. For years, we’ve been preparing ourselves and going in the market from the bottom up in order to get to the point where the enterprises, the large enterprises are going to cloudify their CX environment. And this is exactly the point that it’s starting to happen in a more meaningful way. In this situation, a lot of the small players are having hard time to either compete or to deliver. And we see ourselves both winning those deals. And in some cases, we see them when we are not winning the deal, those deals come back to the table 6 months or 8 months later after the customer realized that they selected someone that cannot scale or not provide the level of complexity at scale that the other competitors provide.
We also see some of our competitors struggling to take or taking decisions based on their debt liabilities; and as a result of that, not doing necessarily the right thing for the long term of their success or the market success. And we, of course, enjoy that situation. And last but not least, I think we’re enjoying very much the fact that, as both Beth and I said before, we have built CXone as a native cloud platform. We invested a lot in that north of many, many thousands of many years that are invested in the platform with a lot of applications. And now we have expanded into digital and AI, the great convergence — doing the great convergence, if you would like, of this market. And as a result of that, the competitive landscape for the potential TAM is much bigger because we are taking a share out of the legacy digital engagement space and the new AI space.
So in that regard, CCaaS, the definition of CCaaS is much broader right now. And it allows us to compete better vis-a-vis the competitive landscape.
Operator: Our next question comes from the line of Patrick Walravens with JMP Securities.
Patrick Walravens : Great. Barak, do you expect over time to see pressure on your seat count as people adopt your AI solutions?
Barak Eilam : We don’t see it yet. The — only 20-some percent of the CX market is in the cloud. So for us, unlike some other companies that used to be the incumbent in the routing or the on-premise ACD paradigm for us, every time we win a new cloud ACD or CCaaS, it’s a brand-new upside. It’s not a conversion of an historical revenue. So if I look in the next few years, the runway is very significant. With respect to general agent or seat count, if you would like, within the customer base, we don’t see it shrinking as customers are adopting self-service solutions. Maybe not yet, maybe not ever just because the demand, the general demand for service is growing so fast with more digital channels being introduced by both consumers and enterprises.
So a lot of the self-service effort is actually being used in order to avoid new agents to be added to the labor market and do that through self-service. So I don’t expect it to happen anytime soon. And if and when it will happen several years down the road, I believe that our business is going to be so robust on the self-service business that it’s actually going to be accretive to us because when we go and we migrate an agent, a label [TAM] into technology, the potential revenue opportunity for us is way more than just the technology that supports an agent.
