2025-05-29 18:15Financial Data and Key Metrics Changes - The company has seen a significant uptick in inbound inquiries due to economic pressures, indicating a compelling value proposition for cost savings [8][9] - The decision to wind down the PeopleSoft business, which accounted for 7% of revenue, was made to focus on larger platforms and opportunities [20][23] Business Line Data and Key Metrics Changes - The company is expanding its offerings beyond traditional ERP support to include managed services and professional services, responding to client demand [3][4] - The partnership with ServiceNow is expected to enhance the company's service offerings, allowing clients to modernize their systems without needing to upgrade their existing ERP platforms [27][30] Market Data and Key Metrics Changes - The company is experiencing increased interest in its services as clients seek to manage costs and optimize their existing systems amid economic uncertainty [8][9] - The upcoming end-of-life for SAP ECC in 2027 is driving conversations and opportunities for the company, as clients seek alternatives to forced upgrades [14][15] Company Strategy and Development Direction - The company is shifting towards developing an indirect sales channel through partnerships, which is expected to enhance brand awareness and market reach [11][12] - The focus is on providing clients with options that allow them to retain their existing systems while accessing next-generation technologies [19][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current economic uncertainty as a "new norm," which has led to increased interest in cost-saving measures [9] - The company is optimistic about the next three to five years, anticipating significant market opportunities as clients look for innovative solutions [68] Other Important Information - The company emphasizes the importance of retaining perpetual licenses when transitioning to SaaS platforms, highlighting the value of existing assets [51][59] - The partnership with ServiceNow is seen as a strategic move to provide clients with a comprehensive modernization solution without the need for costly upgrades [36][38] Q&A Session Summary Question: How should investors think about the opportunity as SAP approaches its end-of-life? - Management noted that conversations around SAP have increased significantly, emphasizing the need for clients to have a strategy in place before 2027 [14][15] Question: What is the timeline for revenue generation from the ServiceNow partnership? - Management indicated that meaningful revenue from the ServiceNow partnership is expected next year, but it will take time to fully develop [40] Question: Why are system integrators (SIs) reaching out to the company now? - SIs are contacting the company because clients are looking for solutions to implement enterprise-wide AI without the constraints of vendor-specific platforms [48]