Amdocs Limited Oppenheimer 29th Annual Technology, Internet & Communications Conference

Yes, sure. We are obviously in the middle of. Not middle. It seems like we are in the middle, but 3 months ago, we transitioned to Shimie as the CEO. We have really been focusing, I would say, on just realigning our vision and our strategy in terms of where we want to focus on, how we want to drive the company for not the next quarter, but the next year, the next 3 years, the next 5 years. Really grabbing all of this, I would say, convergence of technology from connectivity to AI, to cloud acceleration, to the edge, to all these technologies are kind of on a convergence path, which is great. Really delivering value, while at the same time, also trying to balance the cost implications for our customers, because obviously they are huge, big customers as they scale.

We are kind of right in the middle of this, having very interesting dialogues with our customers while trying to set the roadmap for the company. It is a lot of fun times. I think we have been working literally 7 days a week. I always say, you need to be worried when you are bored, and there is never a boring moment in Amdocs.

Sure. As we kind of shared in our earnings, our strategy very simplistically to put it, is kind of these three pillars with a horizontal pillar at the bottom. The first pillar is really what we call our agentic transformation pillar, which is really focusing on telecommunications, our BSS, OSS, really coming to the market with a next generation agentic platform. Keep doubling down on that. We have a North Star of we believe that, eventually it is really going to be business to machines, right? Meaning, this kind of massive layer of doing a lot of IT and doing a lot of change requests and things like that is kind of going to disappear as software starts to kind of auto-heal and evolve and be more agentic and be able to give you all of these capabilities. We're starting to push some of those boundaries.

That is really pillar 1, just taking our customers to the next evolution of software, which is natively agentically built. The second pillar is we believe that we have this DNA of going deep vertically. We are not a company that serves 17 horizontals, inch deep, mile wide. We have some DNA in that. We build mission-critical software that needs to run 24/7. We work and build software that works in a highly regulatory industry. We are super focused on things like PII and privacy, obviously with quantum just around the corner with security, we are already working on that stuff. There are some DNA and characteristics of Amdocs going very deep in these complex verticals that we think can be replicated to another vertical.

Even though we have not shared specific information on that in terms of the vertical, we know we think that our next play is to go to another vertical that has similar characteristics and bring to bear kind of this core competency from the agentic side of telco to another vertical. The third pillar is really something that I am super excited about. I think there are a lot of very interesting emerging markets, not geographically, but emerging markets from a kind of landscape perspective, where there are a lot of things that we are building that could be viable for. We were talking just before this. I spent the day over here at NVIDIA. We spent a lot of time talking about the edge and talking about edge mesh grid and how that can work and how workloads can balance.

Tokenization, how do you kind of measure that, balancing all of that together because that could be the next frontier as we start to go to all sorts of. It is not just that you need lower latency and better capabilities on the edge. There is a great opportunity for telcos to create this mesh grid on the edge, but there is also available compute power. If you look at the need for the next 3 to 5 years, although there is this massive data center build-out being done, they are still behind the curve in terms of the need for many of the enterprises. Here you have fully air-conditioned, power supplied, fiber running, all of these edge points close to enterprises and consumers that can be utilized.

That also comes with a burden of how do you manage the workloads, how do you monetize it, how do you treat it differently, how do you treat security on it, how do you partition it, how do you virtualize it? There is very interesting stack of software complexities. That is some of the big items we have been sitting here talking with NVIDIA in the last day or 2. That third pillar is very interesting and exciting for us. We are building some of this stuff for us. You take something like quantum security, we have already been working on this for the last 6 months for our enterprise applications. They need to be PQC compliant and things like that. Then you just wake up and you go, "Hang on a second, we are doing this," and it is so valid for so many others.

This third pillar is really to look at, are there any of these opportunities? We are not going to wake up tomorrow and say we are going to go into pharmaceuticals or anything like that. But are there some of these opportunities on the adjacencies that could be very viable to take to market as well? That is the third pillar. The fourth, I would say the horizontal layer, is really a focus on real internal transformation. I think Shimie, taking over the CEO role, this is something he really embraced soup to nuts and said, "Hey, we need to be customer zero here. How do we transform completely internally to be fully agentic?" We are one of the bigger Cursor users in the world, for example, as a stat to put out there.

The fight now is not how do we get our people coding on Cursor and Codex and things like that. The battle now is there are also these tokenization costs and things like that you need to measure and balance and make sure that there is an ROI. By the way, it is a completely separate discussion we can have for 3 hours. It is a global problem people are looking at and people need to grapple with, because your cost is not just your workforce, your cost is your work labor plus your token cost for each employee, which is an interesting economic equation for most companies. I am sure you have seen the tweets and things like that of companies like Uber just waking up and going, "Oh my gosh." That is another good example of something that we have built internally.

Having these dashboards per employee, what are they using, routing to cheapest LLMs. All of this is internal infrastructure we have built. We are like, "Hang on a second. This is super valid outside." Back to that how all of these pillars connect. That is back to pillar number 3. In a nutshell, that is our strategy. Absolutely pillar 1, we are doubling down on that. We think there is an amazing opportunity. Amazing opportunity like this LLA deal that we signed or announced last quarter. It is an agentic transformation journey. We are starting to see, and I know you and I have had a lot of conversations about the many POCs we are doing. We are starting to see our customers go, okay, it is not about can I launch an agent to production, because yes, you can launch an agent to production. How do I transform my company?

Who are the 2 to 3 partners that I want to partner with that will take me down this journey? This is where we think there is a sweet spot for Amdocs to really play and make an impact and really set the stage for the next 5, 6, 10 years.