Operator: Our next question comes from Kash Rangan from Goldman Sachs. Please go ahead. Your line is open.
Kash Rangan: Hello, Sudhakar and Bart. Nice to talk to you guys. If you can offer a perspective on your subscription transition? And are there incremental tweets to the subscription product offering that should incentivize the customer to move away from your big installed base of licenses. And also comment share that are there things that you’re doing on the go-to-market side or sweeten up the incentive. So from the product side, from the go-to-market side, what are the things that you could do to accelerate this transition. And also if you have a view on the maintenance fallout, the folks that are not converting to subscription, what are they doing? Are they just sitting out to wait for a certain level of proficiency with the subscription offer so they can jump on board or anything, any other dynamics? Thank you so much once again. Good to connect with you guys.
Sudhakar Ramakrishna: Thank you, Kash, and always good to hear your voice. Both then have a set of questions where are very relevant and something that we have been actively working on. Number one is that, as I mentioned, the Hybrid Cloud Observability product was introduced in April with another extension in July and further in October. What I can say, Kash, is that our first focus was to ensure that customers saw both value and feature richness as well as the simplicity of pricing and packaging. So, we evolve the whole thing to note based pricing, which gives great pricing flexibility for our customers. And so that has been a significant reason why customers have been evolving. So the approach that we took was instead of stopping one model and starting with a new one, we decided as maintenance renewals come up for expiry is when reposition and pitch Hybrid Cloud Absorbability to our customers, and we’ve used that as a motivation to transition.
And there, I would say the conversion rate have been very high. And even though it is less than a year since we introduced the product line, we have seen steady and accelerating progress all through 2022. And my expectation is that if you continue in 2023, and this is an opportunity for us. As you know, we have a very large installed base and a growing installed base as well. But this can be a multiyear growth opportunity for us is the way we are thinking. We have also, on the other side, to your point about go-to-market, given or incentivize both our partners as well as our salespeople to position that harder and better because of the value proposition. And finally, what I’ll say is that as we have converted maintenance to subscription, we are also experiencing meaningful revenue multiples on that, which, as you know, will have a compounding effect as we get into 2023, 2024 and 2025 and beyond.
Kash Rangan: And also if I could follow-up on the observability side. Sudhakar, are you observing the severity markets, a tighter coupling of the trends that are seeing in the public cloud vis-Ã -vis declining consumption? Or do you think there’s more of a secular growth story for this particular product it’s still in early phase or somewhere in between? That’s it for me. Thank you.
Sudhakar Ramakrishna: Yes, absolutely. So both hybrid cloud absorbability, which is what I just described, Kash as well as our, call it, the SaaS observability solutions are complementary and supplementary from our standpoint. And the approach that we have taken is because we are able to do a lot of tools consolidation, especially in this macro environment, it becomes even more compelling to them as we bridge, call it, the premises to the cloud. In terms of how customers are viewing our solutions, it is a combination of helping them optimize cost at one level and increasing productivity at another level. So it’s more of a must-have product as opposed to a nice-to have offering. And then going back to one of the previous questions by integrating service management onto the same platform, we’re able to give them even more efficiencies from an overall deployment standpoint.
So this is a long-term secular growth trend in my opinion, both in the context of three distinct served markets as well as a more unified served market as well.
Operator: We have no further questions in queue. I would like to turn the call back over to Dr. Ramakrishna for closing remarks.
Sudhakar Ramakrishna: Thank you very much. Thanks again for everyone who joined our call and for your ongoing support. We are very excited about the prospects at SolarWinds, and we’ll continue to execute and continue to report out on a regular basis.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
