Vlad Shmunis: Yeah. So the last question. Look, it would not be in the spirit of definitely letter of the agreement for them to take them direct. So we hope not, okay? As far as base or not, when you say base, some of them are coming from our base, but not necessarily from the RCCC, which is in contact base, NICE base. We are trying to convert those to CX. Again, the two products are very different, in many ways complementary. RingCX is much simpler to use. Install a very different price point, more aggressive price point. Of course, we have all the economics on it, so margins are healthy, but it’s really designed to address simpler use cases, more mass market, if you will, as opposed to RingCentral Contact Center, RCCC, which is a flagship industry leading Gartner MQ leading product that match that.
So, again, we have very clear rules of engagement self-imposed internally. When we get an inquiry or a lead, we qualify which product to present it to or which product will be presented to the customer, and once we do, we will be — we’re locked into that path, okay? So it’s rare to see a tug-of-war between CX and CC.
Operator: The next question comes from Tim Horan of Oppenheimer. Please go ahead.
Tim Horan: Thanks, guys. Two also if I may. On RingCX, do you think you’re expanding the number of agencies out there or companies adding contact center capabilities or is kind of more are you taking market share from existing? And then secondly, on Microsoft Teams, do you have a sense of what percentage of Teams users are using it for external phone calls and maybe a sense of where that can kind of go to and do you maybe just have a rough sense of what percent Microsoft has versus other outsources like yourself? Thanks.
Vlad Shmunis: Yeah. No, I mean, Microsoft still has their own numbers. Our use within Teams is, I mean, I think, it’s a well-known fact that, people use Microsoft more for internal than external. Our gold verticals, let me answer it this way, our gold verticals all tend to be B2C, okay? So whenever you have a consumer needing to access their brand, okay, whether it be healthcare or financial, or retail, these are just some of the what we call gold verticals, this is where we shine, okay? And it’s a very, very large market still and a huge amount of greenfield still left to that, okay? Sorry, what was the CX part of the question?
Tim Horan: I’m trying to understand do you think the number of agents are growing in CX or are they shrinking? Your price point is pretty low and easy to use. Do you think you’re enabling people to kind of go into this business for the first time if you’re a small business that maybe didn’t have this capability before?
Vlad Shmunis: Absolutely. Absolutely. So if your question is, well, yeah, our count of agents is, of course, growing, growing very rapidly, because we are early in life cycle and we are — just agent — I mean, doubling quarter-over-quarter and so we are growing quite nicely. But if your question is about overall number of agents in the industry growing, that’s a really interesting question. And obviously, there is this line of thinking that AI will replace agents. For now, we are seeing more AI augmenting agents. I do believe that over time, overall number of humans in the industry will stabilize and be decreasing. I also subscribe to that. And for that reason, we’re building AI and agent assist, co-pilot and even agent replace capabilities into CX.
So this is absolutely taking place. It will always be the case and already is the case, that a bot is much cheaper than a human being. It’s not as good yet, not as versatile and this is across the industry or there wouldn’t be any agent left. You made an interesting point about small businesses that didn’t have access to this type of functionality before. That — I would agree to that, that I would just [inaudible]. I can tell you from my personal interactions with small- and medium-sized businesses, many of them actually pride themselves on the fact that they provide human assistance and not — if you hide behind bots. This is their way of differentiating and showing the human touch and human TLC. I do expect that to stay for the foreseeable future as well.
So there are different dynamics here. At the business level, at the high level, how we approach it is saying, look, customer, if you want to have a good, solid, cost-effective solution of empowering and lighting up your human experience, here is a solution. As you’re ready, here is a simple and relatively seamless path of augmenting their experience, your agent’s experience and customer’s experience. And is — as you get more comfortable, if you feel you can start reducing the number of agents, that’s fine as well, because here is the technology which will allow you to do that without leaving the platform, okay? So it’s more open evolution than the revolution as well we see and our attraction is around that.
Operator: The next question comes from Brian Peterson, Raymond James. Please go ahead.
Brian Peterson: Thanks for taking the question and congrats on the quarter. So, Vlad, the total GPS is notably strong this quarter. I’m curious, is that a broad-based comment or are there a couple that are driving that strength? And how are you thinking about that growth profile through that channel over the next couple of years? Thank you.
Vlad Shmunis: Okay. With GSP, so, yeah, I think, you are asking that. Look, still it’s a hidden gem and actually I’m surprised that not more people ask this question and concentrate on this, because this is one area where we really have built a practice that is unrivaled in the industry. If you think about in historical terms, a few years ago, BroadSoft, which was an on-prem provider, really have licensed something like 700 carriers worldwide, which is really almost all of them and they provided them with software licenses. In many cases, they were perpetual licenses, okay, which carriers have just bought in bulk and also it’s wonderful, and the company had a nice exit and Cisco now owns them. The thing is, this platform has not been innovated on in a number of years now.
It is still on-prem. There is not a natural path to the cloud and telcos are — it was in telcos, it is not just telcos, these telcos and cable providers as well, okay. For example, Charter Communication is a very vital member of our GSP partners and they’re doing extremely well, okay, with our product. So they’re increasingly realizing that they have to move on this dated age, really almost unsupported software that’s out there with BroadSoft, which has seen its prime and there are mass migrations underway, so we’re very bullish about this channel. We are seeing both growth from, call it, same-store sales, where each and every individual GSP is growing nicely, as well as we are adding new major logos. We just announced Optus, Australia’s second largest.
I believe everybody thinks so, so you can imagine that there are conversations across the Board there. And look, BroadSoft, we have a number of very good people from what used to be BroadSoft. We know the playbook. We know who the accounts are. We also are well aware of the fact that out of the 700 that they have, we have approximately 2% of those. So a long runway there and we will be — we expect to be sharing more in this later in the year, and perhaps, at our Analyst Day. But this is definitely an area of strength and a very nice competitive model for us.
Operator: And our last question comes from Terry Tillman of Truist. Please go ahead.
Bobby Dee: Great. Thanks for squeezing me in. This is Bobby Dee on for Terry. I’m curious with the RingEX rebrand, I’m curious how the go-to-market organization has reacted and evolve with the change. Are there potentially some productivity gains on the table for more of the multi-product platform selling approach? Thank you.
Vlad Shmunis: Yeah. I think people understand the reason for this. I think general reception has been quite positive. They understand that by renaming from MVP which was message given from [ph] to RingEX, it does not mean that we are abandoning the multi-modal strategy, it just means that we are redoubling on the experience part of it. It’s more about any modality in particular, but more about integration of all modalities together. But even more importantly than that is infusion of AI and semantic capabilities across the entire portfolio and across all modalities. And this is what people are excited about. This is what won us Best of Show at Enterprise Connect. And look, we will beat our growth base this year, but expect that we will be showing and showcasing these capabilities even to this group, our coverage universe in the relatively near future.
I can tell you that we’re using this product internally and it’s a game changer. It’s just amazing what you can do with AI. If you apply it to a large network, just what kind of results can be achieved.
Operator: And this concludes our conference call. You may now disconnect.
