We have seen a steady rise in the overall level of capital expenditures over the past several years as we have made key investments that align with our growth strategies. The largest component of our capital expenditures is software development and relates to new products and enhanced features in our existing products.

Going forward, we plan to continue investing in the business to build shareholder value over time, and we expect to always have ongoing development activities relating to our major software platforms. However, we do expect the overall capital expenditure to begin to level off in coming years as we complete certain development activities and update our IT infrastructure.

We are in early stages of migrating our infrastructure to the cloud and expect this activity to drive cost and operational efficiencies over time. This will reduce our server and hardware needs that are currently included in our ongoing capital expenditures. The migration will also have some transitional effects on our level of capital expenditures, as more of the expenses related to moving infrastructure to, and maintaining infrastructure in, the cloud will be treated as operating expenses. We also anticipate maintaining certain redundant infrastructure prior to a full transition.