The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Welcome aboard, Zane. I'll direct this one to you. As you just alluded to, the gap between the 24-month backlog and the sub revs growth has
historically been pretty narrow, but it's widened out a lot in recent quarters to 3 to 4 points. I'm just curious -- why is that? And over what time
frame do you think that gap will close? Maybe it's partly due to the early renewals you mentioned, but maybe there are other factors.
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Yes, it does Zane.
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Nice to see continued strength and resilience in the business. I want to go back to talking about generative AI and your opportunity there. Clearly,
a big opportunity to leverage the data you have and use it to make the product and platform better.
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AUGUST 24, 2023 / 8:30PM, WDAY.OQ - Q2 2024 Workday Inc Earnings Call
But I want to talk about the opportunity to maybe utilize generative AI, both to accelerate migrations from legacy on-premise solutions in terms
of making it easier for custom applications to migrate, as well as making it easier for that data to transform and maintain -- transfer and maintain
data fidelity. And maybe at the same time, even on your end, utilize generative AI to reduce the services attach rate and bring down that services
mix a little bit over time. Any way you could help me kind of understand the way you can utilize it on that, that would be very helpful.
Aneel Bhusri - Workday, Inc. - Co-Founder, Co-CEO & Chairman of the Board
Yes. On the first part, we are definitely looking at generative AI to do a better job of data transfer and transformation from legacy systems. And I
think over time, it will be increasingly automated with AI. So that's already in motion.
On the second one, it's definitely something we're exploring and how we bring AI into our services organization to speed up implementations.
Stay tuned on that part. We're very focused on the products that we deliver to our customers. And one thing to think about is actually how we
build AI into the products to make them easier to implement. But that's a work in progress at this point. It's a great question.
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