Frederic Boulan: Hi, good evening. If I can ask a question around the cloud margin, so a big follow-up on the previous one. So we saw some slight improvement in SaaS. The PaaS, actually in Infrastructure Service improved quite strongly. If you can discuss what’s been driving that and some further benefits to expect from the optimization program. I think, Dominik, you seem to say that we’ve kind of done the work now so it’s going to be smoother going forward. And if I may ask a follow-up around S/4. So could we get a bit of an update on where you are on the momentum in migration of those large complex customers? I mean, you mentioned some of those, but if you could share a bit of an update on where you are on S/4, S/4 cloud adoption and in particular, for those large contracts and large migrations, that would be great. Thank you.
Christian Klein: On PaaS and the cloud gross margin, let me take that first. And then, Scott, you can take the question around the ERP and the S/4 momentum on the conversion of our LE customers. I mean, on PaaS, I mean, BTP is an extremely scalable platform. It’s a native cloud platform. And of course, we are continuously working and this is not only since we did the cloud conversion program. We actually also continuously work on TCO. For example, HANA Cloud, so a new cloud database, which gives us enormous scale-out capabilities, which is extremely important, not only for our TCO by the way, but also for our large customers who actually can enjoy this new database in the cloud. Second, we’re also innovating with AWS on ARM.
Yeah, so we also embed further new technology. We are constantly also updating the capabilities within the database. And you know that we still have a few ideas also for the year to come, and the platform is now the underlying platform for all of our business application. So it’s the foundation. So it’s really important for us to also have a scalable platform there. Scott, over to you for the ERP question.
Scott Russell: Yeah. So I guess the — I mentioned it before, but let me give you a bit more color. Customers aren’t just moving to ERP cloud, and I mentioned this, but it’s really important to understand in terms of the future for us, but also for our customers. They’re not just going to S/4HANA cloud. They’re transforming their business. They’re making it lean. They’re getting a clean core. They’re able to optimize the way they run their process. That allows them then to then build and expand and then use that capability, including Generative AI optimize. So these are on the large end customers, multiyear programs, multiyear initiatives, which we see from a financial point of view in our total cloud backlog and that and what you see in the ramp that Christian mentioned in his opening.
But then even on our midsized customers, doing these big changes to their business is the foundation for them the innovation in the future. So I guess what you will see there with a large end, and Dominik also mentioned opening this call that we had a large proportion of customers of 5 million plus in booking, value in ACV contributing to the overall performance. That gives us the platform for customers to do a multiyear transformation of their business, leveraging our innovation, and they will weave in generate AI into that as we go forward because it’s embedded, including our recent announcement of the premium offering that we launched a couple of days ago.
Christian Klein: And maybe one further example. I mean, take for example, Exxon. Exxon also decided to go with RISE for SAP. I mean, for Exxon, it’s actually not differentiating to, one, the ERP landscape further on prem and invest into really commodity IT activities. What is way more differentiating is to say, let’s move our system landscape into the hands of SAP and a hyper scaler and then build with our IT budget, more differentiating capabilities for commodity and trade for the new renewables business to also build a more resilient supply chain. And so the IT budget creates way more value if you can focus more on build and less on run. And the BTP is now their platform of choice to also extend the core because all of these capabilities, what I just mentioned, they need to be, of course, seamlessly integrated into the core.
And here we go again, this is the BTP. The BTP is the integration and the extension layer. The same is true for BMW and for many others LE customers in the meantime as they have selected to go with RISE with SAP.
Frederic Boulan: Thank you.
Anthony Coletta: Thank you. And we’ll take the next question please.
Operator: The next question comes from the line of Kirk Materne with Evercore Partners. Please go ahead.
Kirk Materne: Hi, thanks very much. Congrats on the quarter. Thanks for taking the question. I was wondering — maybe this one might be for Scott. But I was just kind of curious what you’re seeing in the Americas market. Obviously, really strong orders and acceleration in Europe and Asia Pac on a constant currency basis. America was down slightly Q-over-Q. But I was just kind of curious, is that just market dynamics, macro? Is there anything sort of more competitive there going on? I was just kind of curious if you could add a little bit more color on what’s going on in that particular region. Thanks.
Scott Russell: Yeah, no problem. I’ll answer this and, Christian, if you would want to add anything, please do so. So look, as you saw in the performance, we had a very balanced performance across the world. There is no doubt that the Americas and North America is our largest cloud market and also where a lot of the innovation that we’re seeing around the world. And it is definitely a market that has the macroeconomic pressure. But I wouldn’t reflect it as unique against other economies around the world. We see the same macroeconomic pressure points. I think what we are seeing in North America, though, is the combination of GROW and RISE. Those two become really important. The mid-market in North America looking where the smaller companies that are wanting to expand, but they need to do so really fast.
