Tyler Radke: Thank you.
Operator: Thank you. Our next question is from James Fish with Piper Sandler. Please proceed with your question.
James Fish : Hey guys. Thanks for the questions here. Barak for you, obviously, Samad already kind of brought up AI, but I was kind of wondering how you guys are thinking about how AI can actually accelerate or change cloud conversions in the next few years? Are you starting to see kind of that acceleration interest in the pipeline already because of AI versus kind of what you’re seeing over the last, I don’t know, 12, 18 months. And what’s going to differentiate NICE’s AI kind of moving forward? Thanks.
Barak Eilam : Sure. So, the answer is yes. We believe that, a) it is yet another driver for customers that sit on a legacy on-premise platform, AI is definitely one more driver to move to the Cloud. It is almost impossible to have an effective conversational AI solution using your on-prem or legacy hosted solution due to the three assets that I have mentioned, which is the flexibility of a cloud platform and, of course, using the historical data in real time, which can be achieved only in the Cloud. So Cloud is almost, if you would like, a prerequisite in order to really enjoy the full benefit of AI and yes, it’s another reason why customers move. And we see more and more customer understand that, and I understand that it’s not just about moving the contact center to the Cloud, and they are no longer interested in kind of just like-for-like.
They won’t have like for better and looking more and more on this shift of the transformational move in order to, on one hand, improving the service they can provide to the customer, move to a digital and at the same time, starting to offer as a force multiplier, if you would like, of a very effective AI in their environment. And we believe that the investments, massive investments that we’ve done in the past five years, including some very important technological acquisitions we’ve done back in 2020 and 2021 putting us today in the best position to capture on this opportunity.
James Fish : That’s helpful. And then Beth for you. I mean, what are you guys seeing on the expansion rates on cloud relative to the last few quarters? And can you remind us how much you get relative on the cross-sell side versus the upsell? And how you’re kind of expecting expansion rates to change in 2023 versus what you saw in 2022 just given kind of the macro environment.
Beth Gaspich: Yes. Thanks, James. Yes, when we look at the expansion we see of our customers, given the fact that CXone is really the most comprehensive suite €“ platform in the industry, it has a significant amount of opportunity for us to go back into the existing base of our CXone customers and continue to sell more and more of the platform. Of course, as Barak just talked about one of those great opportunities for us is around the use of AI and ENLIGHTEN that is embedded in CXone as well as all of our digital capabilities. So we see that continued expansion of CXone and what the ARPU would look like for our customers. In addition to that, of course, we still have our legacy maintenance space that we also have converting over time to the Cloud.
And of course, that gives us additional expansion opportunities as well because we typically see a very nice uplift when those customers shift over to using CXone and that can look anywhere from two to three times upward to nine to ten times. So it’s a combination of expansion both from the existing CXone users as well as the conversion of our existing legacy customer base.
