There is a certain level of overhang of the SAP majority share. I believe that Qualtrics and SAP are not at the moment set up to optimally crystallize the value that is behind the company. And therefore, exploring that sale could be a way to unlock more of this value the benefit of the Qualtrics shareholders and SAP at the same time. But it means at the same time, that we absolutely expect this value to crystallize in order to ultimately then consider to consummate a transaction. So we will absolutely prioritize getting optimal value for a premier pristine cloud company that Qualtrics is. And we will prioritize this over timing and will certainly also be prepared to ultimately not consummate a transaction in the unlikely event that we would not generate the value that is fair for all stakeholders of Qualtrics, including also the SAP shareholders.
And that’s why we cannot, at this point in time, tell you with precision when this process would be over. We wanted to give you early insights and transparency around it. But that, of course, remains to be seen. And that means, at the same time, that also the use of proceeds is a question that is understandable, but perhaps a little bit premature. But to say, generally, of course, assuming that we are able to strike a deal at a strong valuation, we would have a range of options with any proceeds, which could range all the way from reinvestment in some interesting assets around our core that are closely associated with our strengths, all the way to enhance capital returns to shareholders. We will determine this when we have greater visibility in the process, but it gives us great optionality, of course, to crystallize more value also for the SAP shareholders.
Anthony Coletta: Thank you. Thank you, James.
James Goodman: Thank you very much.
Anthony Coletta: And we’ll take the next question, please.
Operator: The next question is from the line of Michael Briest from UBS. Please go ahead.
Michael Briest: Yes. Thank you. Good afternoon. Luka, I can’t let you get away without a question on cloud margins. Could you say a little bit about the convergence costs for 2022 and 2023? And how much of those went into the cost of sales rather than R&D? And then obviously, you’ve now got several thousand customers on RISE, do you have a better view on where cloud margins are going to mature to in the next few years or certainly the end of this year as well, given that those investments will fade in the second half? Thank you.
Luka Mucic: Yeah. And you’re always very welcome to post your cloud margin questions. That allows me to be the only one in the room who can answer them and that always makes the feel €“ kind of seriously speaking. In terms of the convergence costs, it was significant in 2022 as we accelerated in order to be ready in time to finalize the program. So we had around about €450 million in total costs associated with the harmonized cloud delivery program. That’s significantly more double, more than double, actually more than what we had in 2021. And approximately €200 million of those with roughly €50 million per quarter were actually spent on the cost of cloud line. This cost will, as I said, for a couple of quarters, fade away in 2023.
