Erez Antebi: It’s because that so they need to do something and there are several rationales for why do they need rephrase the question of your permission. Why don’t I have to make any such move at all, okay? Why not stay with what they have got, right? That’s basically your question. And the reason is that they are making other changes that necessitate them to make a decision. Some of them could be because, for example, it’s a think of a mobile operator that wants to launch a 5G network and they want to go to a real 5G network, a standalone 5G core. So they need to launch a new core. So they need new capable — they need to add capabilities to that core. They have to do something. They can’t use the 4G cores that they have got.
Another example, it could be that they have made a strategic decision as an operator to move from their own data centers to some sort of shared environment maybe on cloud and so on. And again, they will need to deploy new tech — different technology than what they have got, because what they have got doesn’t cut it. It doesn’t do that work for them anymore. I could give you another example where — and this is realistic. They have currently a certain product, whether it’s from our competitor or in other fields and that product has reached end of life and there’s no more support for it. So they can’t get security upgrades, et cetera, for its, et cetera. So they have to do something. They can’t live with the product that has no more support, security updates, et cetera.
So I have to do something. All these reasons open up the issue of, okay, if they are going to do that, now they can make a choice from scratch. And therefore, they can’t be — and these and there are other probably examples of why they would have to do something and they can’t stay with what they have got.
Marc Silk: So basically we are saying the companies that are going forward, a global recession is not going to basically be an option for them to have an activity?
Erez Antebi: It’s — I can’t say that. That’s a hard sentence for me to say. You — one could make the argument. I don’t say if there’s going to be a global recession, it’s going to be really bad, then the company that decided to launch a 5G network is going to say, okay, we are going to delay for a couple of years. Things like that could happen, right? I am not going to say there’s going to be zero effect. But the strategic reason to move to make these changes is not tied to, okay, they just got tired of this platform and they really have excess money and they want to spend it. They are trying to do something strategically different, each and every operator with its own — with their own rationale and direction and that necessitates new equipment for them.
And I think that, in general, I think that the telecom industry, while recession will hit — if there is a recession, we will hit everyone. I think the telecom industry is a little bit less — the hit will be a little bit less dramatic, just because, we — maybe we will change our iPhone less frequently, but we are not going to give up our connectivity. So at the end of the day, I doubt we will see a huge impact on telecom — the telecom operators.
Marc Silk: Makes sense. In your second quarter conference call, you announced that you signed a SECaaS deal with Vodafone to launch security services to fixed broadband customers using Allot HomeSecure products with the intention to deploy in seven different European countries. So my question is, is this just limited to customers using the Allot HomeSecure or is there an even bigger opportunity?
