Ryan MacDonald: No, that’s helpful color. I appreciate that. And then, you talked about consistently about the importance of the partner ecosystem. And obviously, just curious, given the sort of a situation that’s been going on at Avaya, and how big of a partner that is for you. I’m curious, one, any concerns about potential negative impacts from that, or conversely, if you start to see maybe an acceleration in maybe a reevaluation from customers to move to maybe another routing customer partner as a result of those challenges? Thanks.
Dan Bodner: Yes. I think generally, we see our partner system — the ecosystem is growing. We announced Google and Tech Mahindra. It’s a system integrator and Carahsoft, they are a federal government system integrator. So we’re expanding the ecosystem. And when we looked like last year, our revenue, which is 50:50 between direct and indirect, but last year, revenue grew faster with partners then they grew direct. And it’s fine. We compensate our sales force, whether they sell direct or they’re helping customers, sorry, helping partners to win, our sales force is neutral, which is part of being vigilant. We definitely like to see our partners successful. In terms of concentration, we don’t have any 10% partner. And of course, the partners that have been with us many years and have grown some large customer base with Verint.
It’s not concentrated in one account, but it’s many, many accounts. So I don’t see any concentration. I believe that we will see many partners that just started with the SaaS platform over the last two years will be growing. And part of our strategy is to continue to grow our indirect business faster than direct because it’s also creating better ecosystem for the platform and also putting some leverage in terms of our OpEx spending and our sales cost. And the last thing, I’d say about our partner ecosystem that it’s not just reselling partners, but we also have many partners developing into a platform and training functionality than they put in our marketplace. And our marketplace is open and available to our customers. So our platform and partner ecosystem will benefit from reselling relationship, but we also see benefits from the platform approach.
Operator: Thank you. . Our next question comes from the line of Mason Marion with Jefferies. Your line is open.
Mason Marion: Hi. Thanks for taking the question. So if we think about your future SaaS growth, do you expect more of this to come from more of your direct sales model or more from your CCaaS partners?
Dan Bodner: SaaS growth, look, our business now is SaaS revenue scale. And when I say we expect more from partners than direct, that’s true for SaaS as well. But it’s not necessarily what you call CCaaS partners. I want to make sure I respond to that correctly, because we have partners that are CCaaS vendors. And we have many, many, many partners that are CCaaS resellers, but they sell — CCaaS vendor and they sell CX automation from Verint. So we’re giving the CCaaS partners the ability to not just resell CCaaS but to add a lot of value with CX automation. And I think that’s a very interesting dynamic in the industry. When you look back at contact centers, the decision was to buy telephony first because without telephony, there is no contact center.
And then, you buy some applications around it. But when you think about digital transformation and AI, we see many, many customers, and I actually gave an example earlier in my prepared remarks, that actually are not looking to change the telephony yet because they don’t think that’s strategic. But they want to move with Verint to the cloud because they are looking for new AI capabilities. And many of our Da Vinci AI capabilities only existing in the cloud, they don’t exist on-prem. But the way we designed the platform, we don’t force our customers to convert to the SaaS. They can leave what they have on-prem and they can buy new things in the cloud. And that’s why the conversion opportunity that’s still ahead of us is pretty big because we have many customers that are buying from Verint to the cloud, but not yet converting the legacy, and that’s the next step to convert everything into the cloud.
So I think to put everything into context, when we think about partners, we have CCaaS vendors who are looking to augment what they design with some additional platform capabilities. There are many resellers that are actually not vendors, but they represent multiple vendors and they see the opportunity for open platform to connect Verint cloud-to-cloud with somebody else’s cloud. And then, we also have all the customers that prefer to continue their journey direct with Verint. And we’re open to all three scenarios.
Operator: Thank you. I’m showing no further questions in the queue. I would now like to turn the call back to Matthew for closing remarks. Matthew Frankel Thanks, Loretta, and thank you, everyone, for joining us today. As usual, if you have any questions, feel free to reach out, and we’ll speak with you soon. Have a good night.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.
