And David Ngo, who’s our new Chief Product Officer is also looking at the product roadmap opportunities to help customers. At core, there’s a tremendous amount of data getting generated. There’s a lot of use cases around that. Just providing a really robust platform for all that data, we believe is the kind of most important job one. But then we do see opportunity to help customers in additional ways beyond that.
Unidentified Analyst: And I guess I just have one more kind of general industry question. More recently, we’ve heard commentary from a number of cloud providers who have kind of noted an industry wide trend around cloud cost optimization and kind of increased scrutiny around public cloud spending from their entire customer base. So, just kind of curious if you’ve observed any similar dynamics, and if not why do you think that’s the case?
Gleb Budman: So, I think that we are different in that with a lot of the traditional clouds, and we’ve certainly seen that commentary as well, and we’ve seen the impact on them from that. With a lot of the traditional clouds, their offerings are priced highly high priced, and they’ve often been — it’s been complicated and confusing to understand for the customers what is — what they’re paying for. And so, we’ve heard from many customers say that they were surprised by their cloud bills. They were unsure where the dollars were going and what they were spending on. And so I think that one of the differences is back place has always been transparent. We’ve always made it easy to understand what you’re paying for. And we’ve always been very affordable in our price point.
So I think that effectively our customers have always been optimized as part of that. And so I think as a result, we’re not subject to some of the same trends that they’re seeing. Now, as Frank mentioned, we did see a 1% to 2% incremental reduction in licenses and data in Q4, which we believe is largely attributed to the price increase execution that we did.
Frank Patchel: This is Frank. I would add one item. Of course, this greater scrutiny and attention on data storage costs benefits us because we have such a good value play in the market. So, we really appreciate that attention and that commentary.
Operator: The next question comes from Erik Suppinger with JMP.
Erik Suppinger: First off, do you have a sense for what portion of your install — of your customer base is on the new pricing? I believe you have a mixture of month to month customers and annual contract customers. And I’m just curious how much of it was on that month to month? And then secondly, for these larger customers, are they typically customers that are on likes of AWS or Azure and then they’re moving off completely, they’re moving their applications off. If they’re doing AI applications, they’re moving those off completely, or are they just migrating their storage off of those hyperscalers?
Frank Patchel: This is Frank. I’ll take the first part of the question. Who’s on the new pricing? So on our B2 side, the group that is on it is the pay as you go customers. The rest of our client base are on committed contracts or they are the B2 reserve group, which pay in advance. So they were unaffected by the price increase. But they all went on immediately. So that pay as you go group, it was immediately affected in the beginning of the quarter. As far as the computer backup group, 25% of them approximately are monthly and they immediately had the increase. And then 75% are either one year or two year, and they are graduating in upon renewal.
Gleb Budman : And then Eric to your other question about for the upmarket customers and — are you asking whether they’re fully migrating off of the traditional cloud providers or whether they’re moving that data off? And I will say it is a mix of both. We’ve absolutely seen both types. One scenario that we’ve seen is customers who have — who don’t have a million different things they’re doing inside of the traditional cloud. And really they need a handful of significant important services. Storage being obviously one of them. Often it’s storage, compute and networking. And so, they’ll use us for storage. They’ll use companies like CloudFlare, Fastly Bunny for networking and they’ll use someone like a CoreWeave or a Vulture[Ph] or DigitalOcean for the compute.
And they’ll migrate fully out of them and go full on open cloud, get have freedom of the data as part of their stack. We’ve also seen the other side where they continue to leverage the traditional clouds for some of their other services. But they use us for storage. I’ll — one customer I give an example is they actually kept their storage in AWS, but they added Backblaze and they actually made us the default and they were able to increase their durability that way, but they then also decreased their bill by half overall, because they were paying so much for getting the data out of Amazon to their preferred network provider that by switching to us, they were able to save enough money to add us and still cut their bill, the whole entire infrastructure bill have.
So we see both. It kind of depends on what they’re trying to do with their infrastructure.
Erik Suppinger: As you move up market, is this going to create more opportunities for you to work with your the bandwidth Alliance and to strengthen that partnership?
Gleb Budman : Yes, I think so. In part because — we’re — in the up market we’re doing more of a consultative discussion with these customers. And so, as you know we have a large self-serve business and those customers are doing what they choose to do, and many of them are moving off of the traditional cloud providers also, but they’re doing that without having conversations with it, with the market one, it we’re having more of the discussion of what makes sense in a strategic sense for you Mr. customer as you go forward in your future, and how do you want that infrastructure to work for you long-term.
Operator: The next question comes from Eric Martinuzzi with Lake Street Capital Markets.
Eric Martinuzzi : Good quarter and outlook. I was curious to know on the 2024 view, where do you expect the gross margin ranging for the full year?
