That’s been the Snowflake story from day one because of what’s now possible. We don’t have the capacity constraints and people can run unlimited numbers of workloads. And now with all the new technologies in terms of programmability, AI and sky is the limit. I mean, in our conversation with customers, I was telling us is that your problem is no longer the technology. Your problem is your imagination and your budget, right? Not that those are easy things, but technology is not holding us back anymore. It’s our ability to harness the technology. And then, of course, you have to pay for it as well.
Mike Scarpelli: Yes. I’ll just add to that, Derrick, too, on your question about Global 2000. Yes, we added two Global 2000 last quarter. And as I’ve said many times before, selling into a Global 2000 as a campaign, it’s a one to two, sometimes three year sales cycle. With that said, we have a number of Global 2000 in our pipeline for Q4. And what I also want to see, too, is not every Global 2000 starts with an on-prem migration. Many of them start with a first-gen cloud solution they had purchased to migrate to Snowflake. Yes, almost all of them have an on-prem estate, but that doesn’t always happen at first. It really varies by customer. But with that said, we still see a lot of on-prem migration to be done over the coming years, and it’s going to be for many, many years.
Derrick Wood: Got it. And Mike, a follow-on for you, really around RPO. And we’ve heard of more companies looking to take a pay-as-you-go approach. So could you speak to what extent customers are shifting to that approach versus annual or multiyear commits and how that may play into your RPO growth trends looking forward?
Mike Scarpelli: No. I don’t see that, that much. The only time you see pay-as-you-go are ones who had signed a 3-year contract and then they run out of capacity. And then they just pay as they go. Actually, one of our top 10 customers is like that. They have until April to continue before they have to do another contract, if they want to get the same pricing that they have. I actually expect Q4 is going to be a pretty significant bookings quarter with a number of renewals that are up or customers are going to do something. And we continue to push for three-year contracts with our customers. Payment terms, I do expect though that is one of the things I’d rather give up on payment terms and discount to price per credit. And that’s really, I’ve said it all along, I anticipate longer term, customers will want to do more monthly in arrears payment terms, and that is available to customers.
It all comes down to what price you want to pay per credit. And to date, most people want the lower price per credit and are willing to pay annually in advance.
Derrick Wood: Helpful. Thank you.
Operator: Thank you, Mr. Wood. Our next question is from the line of Joel Fishbein with Truist. You may proceed.
Joel Fishbein: Thanks for my question and congrats on the great quarter. I guess, Frank, this one is for you. Snowflake Summit, you announced an expanded partnership with Microsoft. And I’m just curious how that partnership is going, and you also announced some joint product integration. So I’d love to get an update how that’s going and how you feel about that going forward?
Frank Slootman: This is Frank. Yes, we actually saw quite a bit of energy coming from the Azure platform this quarter. The things that we worked on in the renewed relationship with Microsoft is really much better alignment in the field from a compensation standpoint that is just super, super important in our world. And we’re seeing the effects of that. And the Microsoft platform really upticked during the quarter. I don’t know the exact numbers at hand, but it measurably ticked up. So we’re encouraged by the behavior we’re seeing in the field, and we’re encouraged in the overall sentiment that’s developing in the field. So it’s definitely healthier than the relationship with Microsoft has been historically. So we’re pleased and optimistic about it.
Joel Fishbein: Any milestones we should be looking for there from the partnership?
Frank Slootman: Not really. We’ll let you know.
Joel Fishbein: Thanks.
Operator: Thank you, Mr. Fishbein. Our next question is from the line of Mike Cikos — with Mike Cikos. Please proceed.
Mike Cikos: Thank you for getting me on here. And good to hear some of the earlier comments around Snowpark, which is consistent with some of the growing momentum we’ve heard in some of our checks. I think the question is probably more for maybe Mike or Christian. But is there enough empirical data or a sizable enough customer base yet for Snowpark to start talking about how these Snowpark customers, I guess, what adoption of Snowpark does for consumption versus non-Snowpark customers? Or maybe how we should think about usage building over time as Snowpark becomes a larger part of those customers’ workflows?
Mike Scarpelli: I think it’s still too early to tell. I will say — we have one customer doing a significant migration, which will increase their consumption on Snowflake to roughly $1.5 million a year. And there are a number of those that we’ve identified in POCs, but we haven’t done the migrations. I see that 1 customer going into production right now, which, by the way, has saved them significantly on their legacy vendor. So clearly, the — with some customers, it’s quite meaningful, the consumption we’re starting to see, and we expect that trend will continue into next year.
