I think a good example is our very encouraging hit rate with very large strategic customers. People tend to forget that we completed Converge only this summer, and we want not one, not two, not three, but actually four very large strategic customers on a platform that just emerged into the market. So that’s definitely a very good sign. We improved our methodology, the way that we operate and sales operation. We did a lot of work there. And we really optimize and increase the clarity of our communication what we sell today is very different than what we sold with the legacy and I think we are able to communicate it much more clearly today. Very importantly, we built an infrastructure that allows us to capture and report proof points. You are one of the beneficiaries on these calls, but we have lots of other places, and especially with clients where we can really show the value of the different utilities in the new platform.
As you asked in the question, we built a whole new solution organization that allows us to really have a dialogue with customers to understand their issues and build solutions that are right for them. And it’s really not a slogan. We are not viewed as just a vendor. We are viewed as a partner and we are helping to transform those organizations and they do need help as they need to do a lot of important things. Lastly, we shared that we brought some very capable leaders, very mature and experienced leaders across all organizations, but especially growth, led by Kathy Weiler from United. And we improve the way that the different units of the company between product delivery and growth are working together as one team. So overall, all those efforts translate in our opinion to a very good level of readiness to begin to grow our pipeline and convert it faster — much faster than we did before.
Operator: Thank you for your question. Our next question is from Glen Santangelo with Jefferies. Your line is live.
Glen Santangelo: Hi. Thanks for taking my question. Hey, Ido, I just want to come back to some of the comments you made in your prepared remarks. I mean, now with 50% of the visits now migrated to Converge, you seem to suggest in your prepared remarks that these migrated clients are scaling very rapidly. And you sort of talked about all these proof points. But when I sort of take that back to subscription revenues, it seems like the total subscription revenue number has been suddenly stuck in that high 20s number for a good number of quarters, and so I’m trying to get a better understanding for these already migrated clients like what the upsell opportunity looks like into these converted customers? Or is that not the right way to think about it? Should we think about it more that this just strengthens those relationships and it’s really about sort of winning new business?
Ido Schoenberg: Well, Glen, hi. There are multiple things here. One is, we still have legacy in the rearview mirror. And legacy is — comes with a number of pain points, and it’s drawing expenses and it’s not developing the way it should because it’s basically a platform that is going to be sunset. At the same time, you have a new platform that is looking fantastically well, but is being implemented. And normally, especially with larger clients, there is a whole process here that takes some time. You integrate, you train, you grow and you don’t grow overnight. I mentioned the time line. We’ll finish Converge this summer. So we fully expect that to scale very nicely but we have a lot of upside ahead of us with our existing clients in same-store and also with the new ones, but it’s going to accelerate as the new platform.
So there is some time for you to take full momentum of the opportunity. And what you see is the combination in a number and that may be a little bit confusing but these are the two conflicting trends that we see where we stand. We fully expect that to be a thing of the past as we finish next year.
Operator: Glen, thanks for call and your question. Our next question is from the line of David Larsen with BTIG. Your line is live.
David Larsen: Hi. Congratulations on these large enterprise wins, shows that Converge is obviously the right strategy. You’ve talked Ido about sunsetting the legacy platform. Can you maybe describe a little more like what exactly does that mean — is that FTEs? Is that bodies? And how much money are you going to save once that platform is sunset? And then with a decline in R&D costs, can you describe the nature of that? Are you — is there an external vendor who is building Converge for you? And then once you’re at, call it, 60% or 80% or 100% migrated, the vendor kind of disappears. Just thanks very much.
Ido Schoenberg: Sure. So a few things. When we talk about our legacy platform and sunsetting as a goal, when that happens, a lot of good things happen for the company, keeping clients our own legacy for various reasons. They’re not ready to migrate – some of the functionality wasn’t ready on time when they wanted to because we were building it and things of that nature. So about half of volume, a little less now is still they’re supporting an older platform and not investing it is expensive. And it’s uncomfortable for us and for our customers. So there is no question that once you have a single, modern, very capable code base that is very high quality it’s less costly. And very importantly, the customer sentiment is much better.
The converged heavy lifting really finished this summer, and we are, as Bob mentioned, we are really scaling down R&D very significantly. Our R&D includes the core of engineers that are full-time employees in Amwell. And we did work with quite a few contractors as we build converge. And what you see right now is the reverse of that. So as we finish components of Converge, we’re able to reduce and normalize our R&D, which is really a potential to save a significant amount of equity. We are going to continue to invest in the platform, but it’s a normal proportion of our budget and what the extraordinary sums that you’ve seen in the past few years to really build this transformational custom. Bob, I don’t know if you have anything to add?
Bob Shepardson: Yeah. I would say a couple of things to add on. One is the amount of money that we estimate that we’ll save once we’re able to sense that those platforms is between $5 million and $10 million. And some of that is cost to vendors and when things like hosting and the other is — and I would say the other piece of this is we have a lot of resources dedicated right now to migration. And obviously, once we’re at a point where we can sunset those platforms, those resources can be redeployed elsewhere. So I think that’s another part of how to think about what happens with the sun setting of those platforms and the ending of the migration effort, which we’re really targeting the end of next year for.
