On this episode of The Six Five Webcast hosts Patrick Moorhead and Daniel Newman discuss the tech news stories that made headlines this week. The six handpicked topics for this week are:
- Callin Launches Social Podcasting Platform
- Five9 CX Summit
- Latest Earnings from HPE
- Google Cloud and C3 AI Team up on C3 Earnings Day
- Amazon Career Day
- Zoom Earnings
For a deeper diver into each topic, please click on the links above. Be sure to subscribe to The Six Five Webcast so you never miss an episode.
Watch the episode here:
Listen to the episode on your favorite streaming platform:
Disclaimer: The Six Five Webcast is for information and entertainment purposes only. Over the course of this webcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we do not ask that you treat us as such.
Daniel Newman: Hey everybody. Welcome to another episode of the Six Five Podcast. I’m your host today Daniel Newman, Principal Analyst, Founding Partner at Futurum Research. Joined by my always esteemed co-host, partner in crime, Moor Insights & Strategy’s CEO, Chief Analyst, extraordinary Forbes Columnist, and all around great guy, Patrick Moorhead. Six Five is live and not only will be live, but we are simulcasting into a new channel, so not only is it Twitter, not only is it Facebook, YouTube of course the Spotify’s And all the other places that we like to provide our big tech analysis, but now we’re doing Callin, Pat. Because after a call in with the All-In guys, you are all in on Callin. Great interview by the way, with David Sacks, how are you doing today, buddy?
Patrick Moorhead: Good. This is my favorite part of the week and it is exciting to simulcast to something new here. We’ll see how it goes. I think there might be a little bit of echo, but maybe we can work on that next time.
Daniel Newman: Six Five podcast is all about giving the analysis of what’s going on in the tech space. Not a lot of news, just enough news to set the tone and the show is for information and entertainment purposes only. So while we do talk about publicly traded companies, please do not take anything that we say as investment advice.
Patrick Moorhead: One thing I am, that I do think I need to point out is the name of the company Daniel is Moor Insights & Strategy. We have multiple insights, but only one strategy, so let’s just nip this in the bud.
Daniel Newman: After knowing you for six years and your company name never change, the fact that I continue to get this wrong from time to time, makes me think you need to change your name.
Patrick Moorhead: Maybe it’s time, after 10 years that I actually do that, so.
Daniel Newman: Joking aside, I love you, man, and I know that deep down, that just set your cry this sets the whole tone of this entire podcast wrong because I learned early in my career that you don’t need to get a lot of things right but you get people’s names right. When you call people the wrong name, I get David a lot and that really bugs me. And it doesn’t matter what comes after that, but when someone emails me and says, “Hey, David,” and it’s not like, my name is obscure, I mean, my name is Dan, it doesn’t get much more generic than Dan except maybe David, but people still miss it. Anyways. I’m very sorry. This is a public service announcement. I am apologizing to you, Patrick, for getting your company name wrong. I mean, good gosh.
Patrick Moorhead: All right. Let’s dive into this show. So David Sacks did announce officially Callin, which is a social podcasting platform. It was in beta and I used it a couple of times. But I think the first thing that comes into everybody’s mind is, hey, how is this different from other properties out there that might have started and might’ve gone stale? And I think we all know which one we’re talking about. Clubhouse, when’s the last time you saw Clubhouse pop up in your Twitter?
Daniel Newman: If you’re actually asking me that question, Pat, it was like the rage for a week. I mean, this thing reminded me of like Elo, remember the Elo, the social network that’s your thing. Makes me wonder about injuries and Horowitz is three times marking up the value of Clubhouse too between its inception and now, and now I don’t even hear about it I don’t, I don’t hear about it Pat.
Patrick Moorhead: Yeah. So a couple of differences, so first of all, on Clubhouse, you have to be there live and it’s not recorded. So if you’re at work and this thing pops up, guess what? You’re out of luck. And there is value in that immediacy, I totally get that, but I got off of it because the shows were never in my time zone. So this is a very easy platform and I do think that when it comes to podcasting, there’s a lot of value and I think the initial value is the editing. So if you can imagine, so we do this recording and then about on one to two minutes later, a transcript pops out and I can instantly go in and Callin pulls out things like ums and urs and you knows, mistakes that I make all the time.
Also, that little chit chat we had beforehand, if we wanted to snip that out before we just got right into it, all you have to do is touch the words and then go away. And then at the end, you publish it and it gets sent out with its own link, you can promote it pretty much everywhere. But the cool part about this is its social, I can see what you listen to, you can see what I listen to and it helps cut through the cruff. And that’s something that things like Apple podcast is missing, you have no idea what your friends are listening to. So I think there’s some initial value here that I think is super exciting.
And I did get the chance to talk to David Sacks, interview him and I didn’t just ask him about Callin, I mean, I was asking about China, deficit spending, what’s new and SaaS and his favorite investments. And I thought that was going to be a toughie, but in pure David Sacks style, he turned it into which one of his investments are farthest along, which I thought was a pretty clever, but check out the full interview on forbes.com.
Daniel Newman: Yeah. Absolutely Pat. I thought it was great. You and I are both fans of the All-In pod, we enjoy the conversation, we definitely love the fact that these gentlemen are so willing to really express whatever they’re thinking. And Callin is super cool, I’m excited to learn more about it. All right, let’s jump into the second topic about Five9. So Five9, I’m just going to say all the names wrong today. Five9, probably most recently made it to big headlines because it was acquired for $14.7 billion via Zoom. And we’ll talk more about Zoom a little bit here and later in the show, but had its big CX Summit event that you and I attended, got to listen to CEO, Rowan Trollope and the executive team talk. Company is in the process of really trying to show the market that voice is still cool.
So while you and I here, by the way, follows the theme of Callin, follows a theme of podcasting, you and I like to do video, we like to add and multicast and give people what they want in whatever channel they want. But in reality, when we really need service, so you’re thinking about the context center world, where Five9 plays in the cloud, it really is all about being able to quickly deliver resolutions to people’s challenges.
Whether that’s you’re calling in to figure out where your missing orders are, you’re calling in to figure out how to get support on a product or service. In most cases, we don’t want to jump on video, it’s still fairly archaic kind of interaction, maybe because of the pandemic are more open than in the past to letting people look in our family rooms, living rooms and kitchens, but at the same time, we just want resolution.
We want to know, where’s that order, when’s it going to get here? How do I get this fixed? How do I get this up and running? And Five9 is really working on building the technology, the platform, the automation to utilize voice and to still enable people and companies to get to that resolution more quickly in a more streamlined manner. That was really the theme I took away here from the Five9 Summit is you can do it using modernization like cloud, you can do it at scale, but you can do it using the kind of communications and technologies that most of the market wants and that’s fast. And I actually, Pat, while this is a fairly quick and simple topic for us to get on and get past here on the show is that I actually think it’s going to be a voice only, it’s going to then evolve to, and we’re already seeing this, voice and chat meaning people would prefer if they can’t get voice they prefer to chat.
And those two are going to become increasingly interchangeable depending on the demographic of who’s looking for support. People are going to want to lead with chat or lead with voice. And video well, I do see continued integrations into CX platforms to enable a quick launch of a video, to help someone with something more technical or something that needs to be viewed. I actually think that’s going to be the third choice and it’s going to be more specialized. So it’s interesting what’s going on here because Five9 is really pushing its roots, pushing the ability to get quick resolution through a voice platform. But at the same time with the Zoom acquisition out there, you do have to think there’s going to be much bigger integrations, especially with Zoom making such a big bet in how it’s going to make it’s platform more extensible, more horizontal, and of course, compete with Slack Force, Salesforce and Slack. And then of course, Microsoft Teams and all that is being built from that platform.
Patrick Moorhead: Yeah, that’s good analysis, Daniel. And this might sound like heresy, but to be honest with you, I think that there’s more you can do with machine learning and audio than you can with video. I mean, imagine if we went on mute and Zoom or a company had to just something with video, what are they going to do? Read our lips or something like that? I mean, maybe, maybe that would improve cognition or something like that. So if you look at the value, I think there’s actually more value in the context of a call center with audio than there is video. The second thing that really came out of the show was automation, which says, okay, you get all of this intelligence out of massaging the voice data now, what do you do? You want automatic call changes, you want automatically information to come up, you want automatic stuff to happen through these cues and automation is the way to do that.
And low-code, no-code type of things are really the way to go as opposed to diving in and editing a hundred thousand lines of code, that’s just ugly and there aren’t enough programmers to do that. So I’ll be honest until I started to do, I’ve done some analysis on some other companies like 8×8 and folks like that and recently Mitel, I think Five9 has got some really interesting stuff and I mean, it’s crystal clear what Zoom is going to do with them. Zoom really didn’t have a contact center offering and now they do. Zoom was super focused on what you could do with video, not really the AI portion, they weren’t doing any tricks with video and this brings an AI capability to their portfolio and of course it brings ruin.
Daniel Newman: Yeah. That’s great. We can spend a little bit more time talking about all the converging forces of collaboration and contact center, CDP, CRM platform is evolving and there is a very interesting set of developments that are creating new landscapes of competition. We got to move on to the next one here. Let’s talk about HPE. So couple of different pieces of news, we do cover earnings here on the show, it’s the beacon moment of truth for companies, as you so prophetically say sir, on the regular, but not only did HPE have earnings yesterday after hours and we had the chance to talk to their CFO, get a little bit more insight from him. The company also announced a multi-billion dollar win from the NSA, that’s pretty legit. And then closed a recent orchestration platform that had purchased Zerto all happening this week, big busy week for HPE Pat.
Patrick Moorhead: Yeah, it certainly was. And I think what we’ll do is we’ll, in true spirit of what we do, we’ll chop up a couple of these. Let me start off with this NSA deal, so it’s a $2 billion deal over 10 years, not a lot of detail, I’d be scared if we had a lot of detail because it’s the NSA, but it’s essentially an as a service high-performance computing deal. But the big picture here to me is two things. So first of all, as of service matters, because my guess is if HPE didn’t offer this or Dell didn’t, let’s say have Apex, this would a hundred percent chance have gone to a public cloud player. I view this as a loss for an AWS, a Google cloud, an Azure, something like that. So I can’t help but to think is this the beginning of the somewhat of equity between the public cloud and the hybrid as a service from the traditional players.
So interesting stuff out there and as I think you’ll go through the earnings that doesn’t necessarily show that now is the time for that based on revenue growth. But the other thing that related to HPE that came out this week, a lot of news, by the way, in one week, I think they could have spread it out there, was the closing of the Zerto deal. So Zerto is a cloud negative aware data protection and resilience that’s going to get sucked right into HPE Green Lake, it’s something you have to have. I’m just boggled at the speed of HPEs acquisitions and integrations. So from a revenue standpoint, they’re a lot smaller than some of the other players. And early analysis that I made was I was very clear, it has to operate five to 10 times faster than Dell and Cisco and even Lenovo to make a difference. And the second thing they needed to do, and this was regarding Dell, was to have software capabilities that people actually wanted to invest in.
And I think that we’ve seen this, whether it’s virtualized environments, containerized based, and then going to the app level where they added even to the vertical apps, like Epic for healthcare, that, how did they do this quarter, Daniel?
Daniel Newman: Yeah. So interestingly Zerto, I just want to make one last point then I’ll jump in. I think there’s a category here, how do you dump that in? Is it operations orchestration IT ops orchestra? I don’t know. I just, I was thinking a lot about that as you were talking, what are we calling this?
Patrick Moorhead: It’s in the storage area, data protection. Okay, DP.
Daniel Newman: Yeah. Just trying to give it, I want to, you know who we are, we like to give everything a label. Yeah. So HPE had a very interesting result this quarter, it came right in on the level of expectations. There’s two converging forces in the marketplace. One is there’s always that top-line number that everybody immediately looks at and says, how fast are they growing? And then there’s the context. And I think I want to just quickly touch on both. And the top line, the company grew about 1% year over year. At first glance, people are 1%, is that exciting? Should I be happy? But first of all, company came in line, second of all, HPE and Cisco, and some of these big ITO, they were hit pretty hard by the pandemic, so this comeback it’s supply chain impacted, it’s return to work impacted.
Also, you’ve got a company that’s in a business transformation, moving from big CapEx sales to more and more as a service revenues, so you’ve got these different forces going on. So at the top line, it’s like, yeah, they’re doing okay, but when you get underneath the surface, that’s where I think the story about HPE becomes more interesting. There was a couple of encouraging top line data points like one their order growth is happening a lot faster than their revenue growth, order growth came in at 11%. Companies doing a really good job creating upping, their profitability was up year over year by 28%. So it shows they’re operating very efficiently. They also mentioned during this earnings call that they’re reinstating sharer purchases, which is always a good indicator that the company feels it’s undervalued and it’s going to start reinvesting in itself and support the investors that have stuck with the company throughout this pandemic.
From a business and operational standpoint, the core businesses are looking pretty encouraging Pat, you mentioned the $2 billion NSA deal, that’s a lot of HPC that part of the business is seemingly been pretty strong. I think they’re targeting over 8% growth. The other part of it has been really robust, has been the intelligent edge, that saw year over year revenue go up by over 20%, I think it was 23% in that business unit, one of the most encouraging year over year growth stories for the company. But let’s be honest Pat, the whole story, the big kazoo was Antonio Neri in 2019, got up on the stage said we’re going all in on everything as a service, you’re all in again. That’s great. Everything as a service and the whole company by 2022. Well, listen, we’re in the eighth inning of 2021 now. So it’s time to hold the feet to the fire. Did the company make this transition into 2022, and how is that going?
So to achieve the goals for revenue and growth, that nearly set out, the company needed to be hitting 30% to 40% growth on a quarterly basis, year over year. This quarter, it once again did do that, came in at 33%, so right in the range and maybe the look forward encouraging number Pat was the 46% growth in the, as a service order volume. They also have over 1100 customers now participating in this green light as a service ecosystem. And the contract value of this business has now reached over $5.4 billion. So for HPE, that’s the number to watch, that’s the story, growth in the edge, good, IOT, good HBC, good. But the whole foundation of the company going forward goes back to Antonio Neri’s 2019 discover presentation where he said, we’re going to be everything as a service in three years. Three years is coming, the numbers so far are encouraging, but again, 5.4 billion need to keep pushing that 30% to 40% growth over the next few quarters to show it’s executing.
But it’s been encouraging so far getting that top line back into seven, eight, 9% along, closer to where ISG from Dell is and where Cisco is, these last quarters, I think is going to be important to give confidence to the outsiders. But some of these numbers beneath that top line are the ones that those, that really Pat the company should feel encouraged. All right. So I’m going to move on. I almost gave you the host duties there, I was going to pause there and let you take me to the next topic, but let’s take you to the next stop, let’s take me to the next topic that we can talk about together. Let’s talk about AI and Google, announcing a tie up together. Pat, I’m going to talk about it from the C3 AI angle, I know you’ve followed Google cloud very closely, so I’ll pitch that back your way a little bit here.
So C3 AI, interesting company, it’s still in it’s fairly early days, but it is one of the only companies out there that has truly hung its hat on what would be considered enterprise artificial intelligence built for industry. So Tom Siebel, the founder and CEO of C3, he’s pretty much a legend in CRM. That’s what you probably know him for, Siebel Systems, early Oracle days, really being one of the people behind the development of CRM. Well, the opportunity he’s identified is effectively that AI is not going to be so much a technology layer driven by IT, but it’s going to be a business layer driven by the data science side that’s going to be early supporting some of the most highly regulated industries, defense, aerospace, oil and gas and financial sector, healthcare. You have massive influxes of data in these industries that’s scaling exponential on a daily basis that all needs to somehow be managed. You need to create algorithms, you need to be able to do this at scale.
And not every company has endless resources to hire mountains of data scientists to actually figure out what are the right things to be checking, to get the constant drip of insights from all that data. And that’s really what the company is doing is it’s building these pre-packaged software suites that can basically do things like monitoring a field full of sensors in the oil and gas industry, or being able to monitor millions of transactions concurrently for fraud. Well, streamlining this so a bank doesn’t have to necessarily build that from scratch, but can instead turn to C3 AI, only at this time, on about a quarter billion dollar, a year revenue rate early, only 98 customers back, 98 customers. And by the way, 200 million of its revenue came from a tie up with Microsoft and working with Microsoft to vertically integrate with its customers.
Now it’s mounting this Google tie up, which is really interesting and Pat I think you follow, like I said, Google cloud really closely, but with Google’s accelerated efforts and investments in growth, I think it could be a really interesting one. And Tom Siebel told me, he said, he thinks it could be as good if not better than the Microsoft type in terms of revenue generation for the company.
Patrick Moorhead: Daniel, I was a little surprised about this one. Google is diving two things, first off Google itself is diving in vertically big time. Why did it need a partner do this? Secondly, the sweet spot for Google cloud is AI and ML and data and that’s exactly, and C3 does vertical big data and machine learning and AI stuff. So I was a little surprised. And I don’t know if this per tends to maybe an acquisition for C3 AI or? And given the work that C3 did with Azure, I’m assuming that C3 isn’t locked into using Google technology, they seem to be as independent. So anyways, kind of a head-scratcher for me, pragmatically, I understand it for both companies, it gets Google going quicker, gets C3 going quicker, but then again, they’re splitting the revenue maybe. So anyways, maybe we’ll see how this works out and financially for both the companies. I wasn’t aware that C3 had so few customers, but I totally, I think I get it from their side, I guess I don’t understand it from Google side, so I have to do some research on that.
Daniel Newman: Yeah. Something maybe we would come back to, it’s an interesting one, Pat, and I think you’ve made a good assessment, small number of customers, large revenue per customer. I think one is operating more at the technology layer and one is operating more at the business layer, but I think Google is making some serious investments hiring a lot of people into their cloud business with great vertical expertise. Reminds me a little bit almost, I don’t know if it’s safe to say this, but SAP S, SAP has lagged in many ways on the technologies, in the cloud migration that some of the other companies have been able to do faster, but has really won by the fact that they’ve had so much business line expertise that it’s like, where are the decisions being driven? How is it being driven by the business, or is it being driven by technology?
And it seems the business often wins when those two compete, but obviously more and more it’s symbiotic. Like I said, I think it’s one that we can definitely come back to. A real encouraging piece of news that broke this week, Amazon. So you and I have a lot of these discussions, Amazon is constantly in the crosshairs. People like to pick on it, but I always say, people like to pick on winners and Amazon is a winner. This week it announced another massive corporate hiring. So these aren’t jobs, they’re fulfillment centers, these are corporate jobs in tech and in administrative roles and 40,000 more employees Pat.
Patrick Moorhead: Yeah. You forgot one thing, people also like to pick on companies that are making a lot of money as if there’s something wrong with that.
Daniel Newman: I was too discriminant of that one huh?
Patrick Moorhead: Well, they’re still picking on Bezos even though he’s not even technically CEO of Amazon anymore. I mean, he’s chairman of the board so I guess this still matters, but they’re still coming after him big time. So, hey, let’s move to what’s going on here. So on the heels of Amazon adding 450,000 employees, more for their distribution centers than anything else. And by the way, those were at Bernie Sanders requested $15 per hour, full medical health benefits, a 401k, 20 weeks of paid leave for new parents, subsidized job training, that includes that. On the heels of that, Amazon had a career fair and at the career fair, they are offering 40,000, I would call it more information worker jobs around the globe, engineers, HR, finance, marketing, and it’s going to happen on September 15th. It’s open to the public, 220 locations around the world.
And by the way, I think I already gave my editorial opinion beforehand, but what I like about this is the 450,000 were mostly distribution center workers. These 40,000 employees are coming in there to even grow even more. You do need OPEX and management to manage the size of the business they have and I think it’s a good thing because this indicates to me that their business would go up. Because these are the last kind of people you would hire because they’re administrative folks aside from the engineers that’s down in that R&D line. But I think what this says is, okay, we know you’re working hard, but we see even more growth coming up in the pipeline and we’re going to bring in more people to support that. So I think that’s a positive sign.
Daniel Newman: Yeah. Pat, a good coverage from your end, read your commentary about it, very good. You and I there’s not a debate to be had here, we share a similar view of the positives of this. This is the world that we live in. Amazon is a rapidly growing company, it is owning up the responsibilities that come with that to push for higher wages, to push for greater benefits. You and I’ve been to the facilities, we’ve seen the environments, we’ve looked at all the safety and considerations given to employees. And that goes across the board. And by the way, we also know people throughout the organization, Pat, and I always say that culture is one of those things that you really get the best sense of it. And when you’re talking in the back room and you’re having a beer with somebody and you just look at their face when you talk to them, whether it’s during a meeting or just having a personal conversation and by and large, my experience with people they’re happy, they’re enjoying their experience and they’re growing.
And if they do leave, it’s usually they’re leaving because they’ve got a great resume that built while they’re there and they’ve been brought in to do a big job somewhere because of the experience, that they garnered one of the world’s largest companies by market cap and of course, by name. So good news always loved seeing jobs being added to the economy, especially with some of these recent jobs reports being less than impressive, given the circumstances and all of the openings that are out there. So let’s wrap up here, Pat let’s Zoom into the finish, let’s let a Zoom right up to the end and talk about Zoom. So Zoom Pat early this week, Zoom reported 54% growth it’s first billion dollar revenue quarter, and it landed in the market with anything but a bomb, it was an absolute wailing. I remember watching it after hours calling 5, 6, 7, I think it dropped over 12% after hours from sitting around 350 to 300.
And remember, this is a stock that was clicking and close to 600 at the peak of pandemic times. This is a company that’s done nothing but grow. And it’s seen almost a 40% and now a 50% retracement from its highs. So the question isn’t really so much about, should it be $300, $400, $500 stock? Because again, that’s not really what we do here, but the question is, is this still a company that’s super viable and that people should be excited about because of the innovation and technology and what in the numbers really warranted that kind of pullback. The pullback long a short came because of the guidance, they’re guiding more towards a 25% growth next quarter. But remember, we’re now in pandemic times where their pandemic quarters are being judged against other pandemic quarters. So 2018 is coming to about $200 million in revenue total. Now you’re talking about a company that by the 2021 is doing a billion dollars a quarter, that is rocket fuel for growth.
And people are like, huh? So it went up and now at 54% and a billion dollar quarter run rate with a billion dollar guidance into the next quarter, people go, that’s not good enough. But normal had to come back at some point, we dealt with a cataclysmic likely once in a lifetime event that drove the acceleration Zoom. So some of its growth maybe warranted a pull back, I think that’s what that 40% was. But in the rest of it, it’s like, is the company doing well? And it’s like, yeah, it’s doing well, it’s got triple digit revenue expansion, over 130% revenue expansion, companies with over 10 employees with 13 straight quarters, that means it’s companies are spending more money. It’s grown to over $2200,000 a year customers that are spending money with them. That’s great, robust, reliable, recurring revenue pack and over 500,000 paying customers at this point.
They just spent 14.7 billion on Five9, which we talked about earlier. It’s horizontal, it’s horizontal it’s platform. It’s building a platform with apps and integration a lot to like. I’ll give you one concern and then I’ll pass this back to you. My one big concern is Zoom is going to have to be really figure out its approach to dealing with these new operating systems for work, these operating systems for work, that are Teams, that are Slack, where video is a capability, but it’s not the epicenter of the business anymore. I think async, you could argue is the asynchronous communications is really the epicenter of our business, but you and I chat on WebEx, it’s we do it, when we have time and it’s on demand, I think a lot of work is like that. Now we’re seeing that getting tied in the platform, we’re getting it tied in with data, we’re seeing it get tied in with ERP, CRM, back-office, CX.
How does Zoom through strategic integrations because what are they going to buy at this point, that’s going to inorganically bring in ERP and CRM in that whole stack and still be competitive? Or does it get wrapped up in a company like an Oracle that wants to actually bring them in and build something competitive to them. But I think at this point, Zoom’s acceleration is so fast, it’s growing so fast, it will be so expensive to do a deal like that, that I think they’re going to have to do it through a bunch of interconnects and strategic partnership, but that is my one concern, but it was a really good quarter. The sell off, I just can’t get there.
Patrick Moorhead: Zoom is up 382% in the past few years. And I think you have different types of investors who jump on a stock. I mean, you have retail, you have the big names that are a little bit less conservative, and then you’ve got the 401k folks who are super conservative. I think the reaction to this is, are the retail folks, who may have jumped on early, made some good money and just wanted to hold on until a certain point, and I think those retail folks are jumping off here. Anybody who expected the growth to continue at that rate is a fool and quite frankly, I don’t know if you want them investing your stock because they really don’t believe in it. To your point of integration into full suites, I hear you there, I totally thought they would make a play for Slack or they would merge.
It was funny, I had thought before the pandemic hit, that Slack would end up buying Zoom that’s before its valuation skyrocketed so much and then Slack ended up getting bought by Salesforce. So I think you do have to figure out the sweet thing, but if I know these guys, I think that they’re going to first try to build a very high quality yet simple chat, by the way, they have a chat and I mean, even beyond the video app itself, but I don’t think very many people even know it’s there. But I think they’re going to try to make a run with that because as we know, it’s all about the data, but it is funny though, if you think about email, I mean the same concerns that I have about Salesforce, it’s like a lot of the data’s sitting in email and how does Salesforce get access to that? How does Zoom get access to all that information in email and chat?
And at least the way their privacy and security goes, they don’t even get access to the information in the video. So interesting strategic stuff here, Daniel, but overall I think it was just a complete overreaction.
Daniel Newman: I think we agree. I think that’s good. And I think we’re at time. So I want to say a good thank you, Patrick. Mr. Moorhead, Moor Insights & Strategy. I’m going to knock that one out in the end. Great job today. Always great to you and me get together for this pod. One of my favorite parts of every single week, everybody out there, I want to say thank you for tuning into this episode. Hit that subscribe button, join us. Join us on Spotify, Apple, YouTube, follow us on Twitter, the good goes to me, the bad goes to Pat. And now I believe you’re going to be able to follow us on Callin. And we’re going to be all in on Callin, We’re going to figure out how to do that. Maybe we’ll have to reach back out, you might have to reach back out to Mr. Sacks and ask him what his ideas are, but you and I are technical, we can figure it out. But anyways, for this show, it’s time to say goodbye. We’ll see you later, until next time.