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2026.10.05 | TB | Software | TeamSystem: AI Products & OnePlatform Upsell

原标题：TeamSystem – AI Product Development & OnePlatform Solution Upsell

#software

Third Bridge · 2026-10-05

Analyst-led • 24 Sep 2026

Companies: SAP DE

Bruno Fonzi (BF) Co-founder & Executive Director at Codame

Philip Atkinson (PA) — Third Bridge Sector Analyst

Agenda

Key Insights

Introduction

PA [00:00:05]: Welcome to Third Bridge's Interview entitled TeamSystem – AI Product Development & OnePlatform Solution Upsell. I'm Philip Atkinson, and I'm here with Bruno Fonzi, former CTO at TeamSystem. Welcome to the Interview, Bruno. It's good to have you here.

BF [00:00:22]: Thank you. Glad to be here.

PA [00:00:25]: Before we get started, could you please state either I agree or I disagree to the following statement: You understand the definition of material non-public information and agree not to disclose any such information, or any other information which is confidential, during this Interview.

BF [00:00:44]: I agree.

PA [00:00:47]: Would you mind giving a brief introduction to your background and your time at TeamSystem, please?

BF [00:00:57]: My background has been a leader in the tech space as a CTO or VP of Engineering, coming from 15 years in Silicon Valley, where I worked for Salesforce, I had my own start-up. Then recently, I joined TeamSystem, where I spent two years as a group CTO.

Questions

00:01:37] TeamSystem has been focusing on AI execution and international expansion for several quarters now. It has seen some good success, with total international revenue growing 17% in H1 2026 and AI continuing to expand, reaching 6% of total revenue in Q2 2026. What is your assessment of the current demand environment for the company?

BF [00:02:14]: In general, or you're referring to the AI-specific…

PA [00:02:18]: In general for TeamSystem, so for the core solution and also for AI.

BF [00:02:24]: Yes, I think I believe TeamSystem is in a good spot. It's becoming and gaining even more ground as a leader in the space and has been innovating by what you actually mentioned, building a platform that enables TeamSystem to scale, integrate, and meet their vision, which includes AI. The platform enables AI to be built in a consistent and meeting the privacy to be able to scale across all products at TeamSystem. They are a market leader in their space. They invest in technology in the product and specifically with the expansion internationally. I think they're in a good spot.

00:03:29] Are TeamSystem's customers actively looking at acquiring new solutions? Are any solutions particularly attractive? For instance, is AI or cloud migration driving most of the customer discussions?

BF [00:03:49]: I personally think, as a personal note, I think TeamSystem has done an amazing job on building the technical infrastructure for AI, so they're in a good spot there. Obviously, like any other company, they could continue acquiring other companies with AI-native companies to enhance and continue the path of innovation and strength their platform. I don't think that usually what TeamSystem does. They don't invest necessarily on technology, but they invest more on companies and you can see that in the track record, very seldom they invest in companies where it's a technology-driven, but more like product market share, entering a specific vertical acquiring new customers that can leverage and be integrated and cross-selling with their TeamSystem products. I think they will continue acquiring with that goal in mind.

00:05:18] TeamSystem highlighted that the international revenue growth in Q2 2026 is in the absence of regulatory tailwinds. Could you summarise this? What are your expectations here? Could we see regulatory tailwinds in the next 2-3 years?

BF [00:05:38]: Each country is different though. There are countries where like in Italy, regulation in the market they are going for, it's already in place like in Turkey, for example, but there are countries like in France, we're just repeating what happened in Italy in 2019 with the regulation on invoicing. It's actually happening now. Then there is Spain, which they keep delaying the regulation. That's where TeamSystem strengths come into plays as they can leverage not just the expertise, the know-how, but that similar milestone that happened in Italy be repeated in different countries. You cannot say that each country is different and like I was mentioning Turkey, they've already been gone through that process, so it's a different story there. When it comes to France, it's interesting what they actually should (audio distorts 06.57) up and coming and critical to be there when the transition happen, regulation gets into place and Spain, the same thing. Then there is, I think, the long term is a European… I'm talking Belgium as well as into that transition. I think the longer term is when is it actually Europe going to be regulating all those countries. Although it's a very, very long term, but that's having TeamSystem having a placeholder in all these countries will be an advantage for them.

PA [00:07:46]: Given that TeamSystem makes a point to say that this is in the absence of regulation, should I consider recent performance as more of a baseline and the company is preparing for accelerated growth in the future when we do see increased regulation? Why do you think this is an important thing to point out from management?

BF [00:08:07]: Yes, correct. When it's not regulated yet, and we know it's going to be regulated. Each country is putting their regulation, so like I mentioned before, Europe will actually put those in places eventually. TeamSystem advantages to be there being in the market and when the regulation happens, repeat the story that happened in Italy, for example.

00:08:41] TeamSystem is reportedly exploring a stake sale. What value do you see the company providing the new owners?

BF [00:08:55]: That part I don't think I can talk about. I can be generic. I can tell you my opinion, but I cannot say details about the recent developments in the space, but generally…

PA [00:09:18]: Yes, what would your opinion be?

BF [00:09:24]: My opinion, it of course brings capital and further investment and confidence of be able to long-term match and keep growing and become a leader, but it's also a matter of potential partnership and collaborations and support and insights from the market. It is not just the investment itself.

PA [00:10:07]: Do you think the value of TeamSystem is that it's a company where it could be acquired by, say, a financial backer and it just keeps growing as it has been? Or do you see the company offering more potential, for instance, for any buyers looking for specific geographic breadth, technology or the speciality of TeamSystem? How should we be looking at it from the outside? What should we value? Should we value that software growth, or is there more to it?

BF [00:10:49]: I don't think TeamSystem is placing themselves as a company to be acquired, not yet at least. Things can change in the future. Obviously, their focus is to grow market-wise with the product. Then they have the opportunity and they're doing well, but things can change, obviously. My personal opinion, like they're really good on certain markets, especially in the southern part of Europe or they went all the way to even Turkey and Israel. This is speculation, but I don't think they're prepared or they can handle Anglo-Saxon countries, for example. Maybe one day, who knows, maybe there could be a potential either acquirer or merger in a company that has that market that cannot actually manage well the southern part of Europe that TeamSystem does well and vice versa, the northern part of Europe or North America that TeamSystem is not prepared for. It's hard to say. The focus is not on that path from my opinion and from what I have seen, but things can change, of course.

00:12:53] TeamSystem's top-line sales growth has been decelerating YoY, with 2025 coming in at 15% total revenue growth and 2026 so far looking to be about on par with this. What is your expectation for revenue growth in the coming 2-3 years, given what we've discussed?

BF [00:13:19]: You mentioned before about investing in countries where they're not yet regulated and where regulation is coming. I think that's the model that TeamSystem trying to replicate and they've done a great job so far for their expansion internationally and the model has been working really well because, yes, it is in a saturated market like in Italy, those numbers will be hard to actually grow. Outside Italy, that's where I believe the margins and the growth are happening. Actually, it's visible publicly what's available right now.

PA [00:14:16]: Would your expectation be that this continues at that 15% going forwards, or could we see upside potential, dependent on the international growth or regulation?

BF [00:14:36]: Yes. Actually, it can be even bigger, particularly thinking of Spain. It depends Spain and France is actually happening right now, where France is about to be regulated and Spain keep postponing but it's going to happen. Having said that, there is also execution on how TeamSystem will be able to manage competition in those countries and execute on those countries, which is a risk, but they have a good track record to be successful that way. Yes, there is a growth opportunity when I think two specific countries like those France and Spain where regulations are about to happen.

PA [00:15:41]: Taking 15% as a baseline growth outlook, what additional growth could regulation in specific countries potentially drive? Is that 2-3pp extra, bringing us to 17-18% in those years?

BF [00:16:03]: I think it's a balance also if you think about Spain and France, I think that there is a potential higher even than the 17% or 18% but then you have to balance with other countries where in Turkey, they've done a good run. I'm not sure that actually the good run, it's different now because it's more about focusing on competition on the product side. I'm not sure if the good run could be as good as it has been in the past. There could be average-wise, higher in France and Spain, then maybe lower in Turkey.

PA [00:17:00]: Would that keep us at that 15%?

BF [00:17:05]: I think higher, but I would say I got three more points like 17% they can manage 18%.

00:17:17] We've been discussing the impact of regulation. What typically comes through that? What changes take place during regulation? Why does that lead to an opening for TeamSystem?

BF [00:17:35]: Two factors. One is customers are obliged to use the software and so they don't have a choice. If TeamSystem or of course, there are companies out there are the ones that are grabbing those customers, that's the biggest growth opportunity. Then when it comes to TeamSystem and even potentially in comparison to other competition is that TeamSystem can leverage the existing customers and cross-sell to them the other services, other products that they actually have in their portfolio. That's where the TeamSystem growth is of revenue.

PA [00:18:33]: What customers are obligated to use the solution? Would this be sole traders, micro-customers or small businesses? How should we think of the size?

BF [00:18:47]: Yes, there will be mainly the small, medium companies in the micro sector. It is the main target for TeamSystem and the growth. Likewise, if we repeat what happened in Italy with Fatture in Cloud and growth they generated. Specifically, any business that needs to actually have regulated set of invoice and accounting and therefore, if they are a medium company, they could leverage the HR solution or the legal solution that TeamSystem has and therefore, I also mentioned before, cross-selling leveraging the other offering the TeamSystem has.

PA [00:20:02]: Thinking of the growth there, would TeamSystem be able to capitalise on this merchant segment, given that focus? Would it be growing market share in these geographies as well?

BF [00:20:20]: Yes. Think about really the way that things have been going in Italy. The goal is that each country becomes… It repeats the story.

00:20:42] What is driving the explosive increase in AI revenue, where we are seeing acceleration from 40% to 50% growth QoQ?

BF [00:20:58]: The way I see it, AI is nothing else than what TeamSystem has done already in the past in automating and simplify and accelerating, making more productive their customers. TeamSystem has done a lot of that work even before they called it AI and even using machine learning and automate as much as possible the workflow of the customers. If you think about automation, AI for TeamSystem at least for the TeamSystem customers is primarily automation and maybe secondary insights and decision-making. The automation will become I would say, not only an expectation, but once you actually have the automation, not sure of the right word. It's a sticky point. We see that in our daily life, if you use any AI tools and the expectation is to do more and more of that automation work, and that's what TeamSystem is providing to customers.

PA [00:22:32]: Is there any specific workflow that you think is going to be gaining particular traction from TeamSystem?

BF [00:22:40]: Their core has always been the invoicing. You can apply those in every product solution from HR to legal, or cybersecurity. When it comes to invoicing, having the ability to automatically suggest, send, check, adjust, give the opportunity to recommend savings or tax regulations and supporting customers with this data there are literally hundreds of use cases that TeamSystem could leverage to help the customers. Obviously, we cannot do all of them all at once, but a matter of prioritising the hundreds of use cases that are possible that the customers can have value. There's nothing too different from what other companies are doing with AI to give these larger customers. When it comes to invoices, I think that's their core. Additionally, there's another advantage that TeamSystem has when it comes to AI as they become the market leaders and they have an enormous amount of information through those invoicing, they can also potentially recommend insights on benchmark for specific industries or trends which another company might not be able to do as precise as they can with the amount of data they have.

00:25:22] Do you think the explosive growth is due to TeamSystem releasing new workflows and increasing the number of workflow automations it provides, or are more customers utilising and paying for the workflows now? What do you see driving this revenue increase?

BF [00:25:42]: Again my personal opinion, two aspects. It's like, first of all, AI, it is already, in a way, part of the product offering. It is not like a distinguish… There's AI add-on or a different product with AI. AI is after all is automation that will be part of the product offering, in general. The expectations, I would say for the customers will be the same. They will not expect anything less. There is a premium that TeamSystem can offer with the new versions and the AI move to the cloud with the automation parts of AI, but there is also then opportunity to change the monetisation model when no longer pure the traditional SaaS model, but consumption and using. There's an opportunity for TeamSystem to already exploit the consumption model. As I think that's again in my opinion, it will be hard for customers to go back to the traditional manual entry once you actually get used to the automation. You'll use more and you will get more dependent on and I can go on. Going back to the cross-selling different departments of the company can leverage this data across product across use cases.

00:28:16] Given the lower base, another way to contextualise the AI revenue growth is the revenue mix. This has been increasing by about 2% each quarter. If TeamSystem maintains this pace, it would be about 9-10% of revenue by full-year 2026. Does that sound reasonable to you?

BF [00:28:40]: Yes. It sounds reasonable. I think it will exponentially even be bigger. This is I think long-term with this investment. Based also what I said before, there could be other revenue streams and so it will actually increase.

PA [00:29:13]: How do you see that trending over the next 2-3 years? What percentage of revenue do you think will be driven by AI?

BF [00:29:31]: The first years won't be as big as… Let's say, I think the biggest ground will be in a couple of years. Now it's more like putting the seed and we're still in a smart way where the revenue increases, but the biggest gain will be, I believe, in two or maximum three years.

PA [00:30:03]: Why do you think in 2-3 years?

BF [00:30:08]: I think then once you continue to get the market becoming the market leader, continuing to having access to all this data and continuing to having a customer that is used to and it's impossible to go back, then it becomes not just now you're dependent to, but also you can offer much, much more.

PA [00:30:48]: If it's around 10% for full-year 2026, what could that percentage of revenue look like in 2027, 2028 and 2029?

BF [00:30:59]: I'm a little bit, I guess, optimistic, but I don't know, it's hard to say those numbers. I would say a slightly increase every year, like, let's say, 12%, 14%, 16%. If the execution continues to be on the right path and things go as expected, I can see… I'm bold, I guess, I'm very optimistic in that area, but it could go as high as even 20% in three years. That's my personal opinion, and I'm a little bit optimistic and maybe bold, and again, it depends really very much on so many other factors, but the potential is there.

00:32:21] You mentioned that 17-18% YoY growth is reasonable. Of that, what percentage points do you think AI will contribute in 2-3 years?

BF [00:32:48]: It's hard for me to say. I think it will be a great contributor in comparison to what traditionally has happened in the past. While the increase has been seen through the acquisitions, mostly in the past, and we talked about in countries where it's not been yet regulated, which still continues in the last few years. It will continue that way as well, but it's done in the right way and the execution is right and AI, when I think about AI, it's not just AI per se, it's like data, platform, cross-selling capability, automation, it will have potentially even in three years, a bigger impact than what traditionally worked for TeamSystem.

PA [00:34:07]: Do you think AI will be driving the majority or minority of revenue growth in the next 2-3 years?

BF [00:34:14]: Yes, I think so.

PA [00:34:15]: It is the driver…

BF [00:34:18]: Again, what I meant when I think about AI, the future AI per se, the chatbot or talking about (inaudible 34.34) what I was saying before, data, automation, integration, cross-selling is an enabler for all those therefore the product to be customisation. There's so many aspects that AI can enable and different models of monetisation and revenues. That's why I think it's going to be, if done right, one of the biggest impacts on the revenue.

PA [00:35:17]: If I'm thinking around the AI module monetisation from TeamSystem vs migration on new customer acquisition, do you still think AI monetisation is the main portion of the revenue growth that we'll be seeing?

BF [00:35:34]: I think the two are connected because the AI will drive also more customer acquisition or at least customers who are not traditionally what the core businesses of TeamSystem. The two are very well connected. The way I see it, AI is not what you sell as an add-on, but is the driver that gives the impact to the business, to the product.

00:36:34] TeamSystem's management mentioned that 90% of customers reuse AI. How do customers typically engage with and approach AI functionality in TeamSystem?

BF [00:36:51]: How do they engage in similar words, in what sense then?

PA [00:36:55]: When management says that 90% of customers reuse AI, to me, that implies that customers are doing a task, they use AI once and then they don't touch it again. Then they come back, do the same task and use AI again. Is that the approach? Is that how AI is embedded into the TeamSystem product and customer journey? How do they interact with the AI solution set?

BF [00:37:20]: I think we were just at the beginning. I was saying before, it's more an investment. Right now, when we think about AI is the potential of the chatbot and the chatbot is useful to a certain extent. Yes, you can use it once, for the TeamSystem's use cases and it's valuable to a certain extent. It's just the starting point is when I think about AI, it's not the chatbot alone, it's really truly embedded in the product. The customers will not really realise or even care if it's AI or not AI. It's the automation side, it's the insights, the recommendations, those magic at work and the mechanical work that is actually done by TeamSystem, which is through AI, fair enough, but that the customer will use AI in that way. I don't think they even know that there is actually AI behind the scene.

PA [00:38:39]: Do you think that's where we are today, where AI usage is essentially built into that customer journey automatically?

BF [00:38:48]: Yes, partially, not entirely. It's where like every other company is started with a chatbot and then starting to actually become… What's the difference between a native AI company and our product with AI-first difference? The TeamSystem comes from not a native-AI company, but it's started with embedding AI within the product by going towards the direction of becoming a native AI, therefore, AI will be core of the offering. What you see, which is common also in different products is that the interaction with AI is usually through the chatbot and the way you realise actually you're working with AI. There's much more and that will be done and there is already existing that the customer doesn't potentially even realise it's actually AI work.

PA [00:40:20]: What is the pricing model for the AI functionality? How are customers engaging with AI today?

BF [00:40:34]: I cannot tell you more than what is actually public out there when it comes to pricing. What the interesting part is I was mentioning a little bit before, is the opportunity that TeamSystem has invested in AI when there's new models of monetisation that they could take advantage of.

00:41:04] Do you expect customers to actively select and pay for modules by year-end 2026 or early 2027, or would you expect the AI functionality to be bundled in general price increases?

BF [00:41:22]: I think it will be bundled in. It doesn't make sense. It's my opinion, again, to be an add-on because if it's also based on what I said before, if it's not part of the offering, so an upgrade in this case right now and people are not using AI, then the vision that we're saying before and the opportunity will not actually happen. It cannot be an add-on. It should be part of the offering.

00:42:06] When monetised, what level of price increase do you think could be pushed over to customers? Do you think TeamSystem could increase prices by 10-20%, for example, in 2027, justified by the embedded AI functionalities that we see?

BF [00:42:26]: I think just check where publicly it is available, but they've been already doing it, and it's AI migration to cloud with the price increase. That's something that they've been doing every year. I want to check what the trends or the public information is. It's something that they can continue to do so.

PA [00:42:56]: Going forwards, particularly because of the AI opportunity, what level of price increase would you expect to be pushed through?

BF [00:43:09]: Nothing with those same numbers, nothing that is not much different from what the trend has been so far with TeamSystem with the price increase, so it continues that trend. They cannot go too much up and they cannot go too low. It is an opportunity to continue.

PA [00:43:34]: If AI is coming in and offering increased revenue opportunities, and you mentioned it contributing the majority of revenue growth, why can TeamSystem not charge even higher price increases, given this functionality that it's providing to customers vs historically?

BF [00:43:53]: With AI, you need to, first of all, collect data to be as more efficient and give the value. Initially, you might see some value, but you only see it after adoption is happening. That's why it's a little bit of an investment and longer-term opportunity.

PA [00:44:29]: Essentially, could AI be a factor for multiple price increases as customers do realise the value? Could it increase by 10% in year one and then 10% again in year two and so on?

BF [00:44:46]: For the same reason I was saying also before, like once you actually get used to those automations and you rely and you see the value too on savings, yes, it'll be easier to even accept and continue another price increase.

00:45:14] A credit rating mentioned that TeamSystem aims for over a 10% annual increase in average revenue per customer through price increases and indexation, combined with module add-ons. Do you think we should expect 10% or just over 10% price increases going forwards?

BF [00:45:43]: Yes, I think it will continue the same path, yes, won't change. Then in the long term, it will be other opportunities of monetisation that was mentioned before, consumption-based, not anymore. I think in the long term, there won't be the add-on, the feature but we're talking about years ahead of us, where there will be more transaction-based or outcome- and consumption.

00:46:22] When could we see the general price increase pivot towards outcome-based pricing? Is it three or five years?

BF [00:46:34]: The old days, I would say longer than three years, so I say five years, but nowadays, with all the changes happening and way faster and the trends that are coming from the US, I would say three years.

00:46:58] TeamSystem's management noted that 90% of customers reuse AI, and you mentioned how this is often just embedded into the solutions – customers might not know they're using AI. What prompts that 10% not to reuse AI functionality?

BF [00:47:20]: I don't know where you got that number specifically.

PA [00:47:28]: It will be from the company's earnings releases.

BF [00:47:39]: Yes, because that's my personal opinion. I think because when we think about AI, it is the chatbot alone. Not always in their use cases, the chatbot is what they need, but they need more features like summarise, alert me, where schedule, automate, make those automation with AI vs a chatbot itself. Then I don't think there are some features already existing in the space, and I don't think customers should really realise. Again, that's my opinion. I don't have the details on those numbers and the insights as of now.

00:48:38] In Q1 2026, TeamSystem's management mentioned that top-performing AI such as automated accounting saw 70% adoption. AI revenue was 4% of total revenue back then. What is driving that high adoption but low monetisation uplift?

BF [00:49:04]: Perhaps I cannot say automation has been in TeamSystem for a while. It's not something that has been enhanced and has been improved, but it's been a feature that TeamSystem had for a few years already. I don't know if that actually, this is the reason why you see those direct impact lower than you would expect.

PA [00:49:41]: Do you think specific functionality such as automated accounting is in itself an monetisable add-on, for instance?

BF [00:50:06]: Possibly, but I don't know, there's a balance like a company like TeamSystem have a lot of benefits to have that feature adopted vs to monetise it in the short term. It's a business decision, but there is also value on adoption vs monetising in the short term or to be able to monetise more in the longer term.

PA [00:50:48]: Would you expect that adoption to be the priority for TeamSystem currently? For how long do you think it's going to maintain that priority before pivoting towards monetisation?

BF [00:51:01]: It is both. TeamSystem will not just go for adoption. They know how important adoption is. I think that's a general thing for any company and see the results in the more longer term. A company like TeamSystem does not just focus on adoption. They also want to see relatively good short-term, medium-term results, but it's a matter of balancing each year.

00:51:37] Another way that AI is changing things is with internal developments. R&D increased by over 30% YoY in H1 2026 as TeamSystem's management focuses on both increasing investments and internal AI usage. Where do you think R&D priorities should be focused? Is OnePlatform or AI functionality the right focus?

BF [00:52:03]: I think the two are really close together. AI without the platform cannot succeed alone as a feature that is actually not part of the platform therefore available for all the products and portfolio of TeamSystem and the customers in a unified way since it's safe and secure and the consideration of privacy aspects. The two are, in my opinion, one thing.

00:52:42] I believe OnePlatform is still under development, but it has a solution today. What percentage of TeamSystem's customer base do you think is on OnePlatform today?

BF [00:52:59]: If you think about when a customer from TeamSystem logs in into a product and has only one login, so actually that login can actually access to HR product or Fatture in Cloud or that's already OnePlatform. It means OnePlatform is doing the job is integrated and the product has adopted to OnePlatform and the customers don't have to have two logins. That's OnePlatform from the outside perspective. It's already there. If you see AI chatbot is also platform because the AI chatbot, it needs to have the platform to be able to integrate and take into consideration all the data privacy and cross-product and licensing and what can access and not access. Maybe I forgot your initial question, but pretty much all the products have OnePlatform, if you think about the login, in this case, for example.

PA [00:54:36]: Is that all in a single pane of glass, all in one integrated product set, or is this still one login but all separate applications?

BF [00:54:48]: No, it's one set leveraged by all the products, yes.

00:54:54] When TeamSystem's management mentioned ongoing development priorities with OnePlatform, how should we interpret that? What is there left to develop for OnePlatform?

BF [00:55:10]: The core is done, and I cannot tell precise where the states are right now. Yes, when you had your original question with AI and platform, I think strongly believe that those two are very one thing. That's where the biggest focus for the platform will be is enabling AI and being fully truly native in the TeamSystem platform.

00:55:58] What percentage of the customer base do you think has migrated to OnePlatform? What would be your estimate for year-end 2026?

BF [00:56:12]: When you talk about OnePlatform, there are different services. If you think about the login use case, it's 99%. The only ones that don't have the platform are the new acquisitions. Usually, it takes a few weeks, and they're also integrated.

PA [00:56:37]: There's no mass customer migration that's going to be needed or coming up in order to leverage AI, for instance, or go to OnePlatform?

BF [00:56:52]: Then when we talk about all different other services it's not a migration. From a customer's perspective, they shouldn't be able to see any difference. I think that the focus is more moving to the cloud and then the cloud enables platform AI and more. The migration will be more to the cloud and indirectly supports the platform and…

00:57:26] What percentage of the customer base is on the cloud-based OnePlatform vs on-prem solutions?

BF [00:57:33]: Percentage-wise, I cannot say, but the numbers, they're looking good. They're also like customers are more keen to move to the cloud than has been in the past.

PA [00:57:53]: By year-end 2026, what percentage do you think will be on the cloud? Would it be something such as 30%, or would it be on the other end, 70%?

BF [00:58:07]: More on the other end, 70%.

PA [00:58:09]: Is 70% a good number here, or do you think it's higher or lower?

BF [00:58:20]: You see some categories of that they might reach like the micro will be like 90-99%, if not 100% and some are lower like ERP, but I think they need to… You're talking about the end of 2027, you said?

PA [00:58:49]: Year-end 2026.

BF [00:58:50]: End of '26. I think towards end of '26 is a good number, 70%. In two years, it should be able to cover 100%.

00:59:14] How much increase in average customer spend or ACV [annual contract value] does cloud migration drive? Is it a major pricing increase, such as 40%, or something minor?

BF [00:59:37]: That's interesting. It's based on the client actually. There's no 1% at the moment.

PA [00:59:54]: Could you elaborate on that? When you say based on the client, what aspect of it?

BF [01:00:00]: Some clients, we're talking about legacy on-prem solutions. In the migration process, they have different offerings for different customers as they are like bigger customers that are not… The small customers, they don't have much of a migration challenges or issues. When I'm talking about like the bigger customers, there is an almost ad-hoc offering.

PA [01:00:47]: Would larger customers see a larger price increase upon migration? Is that typical?

BF [01:00:55]: Larger, yes, usually, they do, yes. There is a standard, but there's also an average, but it's also exception. It's not one for all.

PA [01:01:15]: Do you have a range in mind? Is it, for example, 5% at the low end and 40% at the high end, or is it a lot tighter?

BF [01:01:27]: Yes, the gap is high. It's a lot of factors into consideration. I wouldn't say 5% will be starting at 10% to sometimes even 70% sometimes.

PA [01:01:52]: Perfect. Thank you so much for giving me some of your time today. It's been really lovely talking through TeamSystem. Unfortunately, that's all the time we have. I hope you enjoyed the hour, and I hope you enjoy the rest of your week.

BF [01:02:08]: Thank you. I appreciate it.

Transcription ends at 01:02:33 of the recorded material