Ed Meyercord: Yeah. I mean I think it’s fair to say that, that there are going to be some customers in the marketplace that are waiting on this. The benefit that you have in Wi-Fi 7 is you have — the different frequency bands and you have, in our case, higher bandwidth, which is important. And then, we’re also bringing dual bands in terms of speeds and so there’s a lot more flexibility in the solution. So every time you have these upgrades there’s higher quality in terms of connectivity. In this case, there’s more bandwidth, there’s more flexibility in terms of end-user devices that we pick up on different frequencies. And then we have the dual bandwidth capabilities in terms of how we connect to the network. The Wi-Fi 7 for us is cloud managed in addition to our 4000 series switch, which is purely a cloud managed and in this we’re bringing some unique capabilities that provide a lot of advantages in terms of how to deploy and run networks, relative to the traditional CLI model where provisioning and network deployments can be done in a much more efficient fashion and a more automated way.
So yeah, there are a lot of benefits in what’s coming out and our most recent releases. And yeah, in terms of opportunities, it could have an impact.
Timothy Horan: And when does it start shipping at scale?
Ed Meyercord: We are GA at this point. So I think you would expect to see shipping from Wi-Fi 7 beginning in Q3 and really ramp up — and begin to ramp in Q4.
Timothy Horan: Thank you.
Operator: Thank you. And our next question coming from the line of David Vogt with UBS. Your line is open. .
David Vogt: Great. Thanks, guys for taking my questions. Maybe to start on the competitive landscape and that dynamic, I think you guys spent a lot of time talking about that taking sort of the inventory, de-stocking, pained short-term. But you also talked about normal seasonality in Q4, talking about gaining share over the long-term. Can you maybe just kind of talk about what you’re seeing competitively in the market today that gives you confidence that we can get back to share gains over the intermediate and longer term? And then I have a follow up question as well.
Ed Meyercord: Yeah, Dave. Thanks. So I’ll comment on that. What gives us confidence is what we see happening in the market every day. And we’ve talked about the largest competitor in the space that has a very different cloud solution. And we continue to see the industry moving to cloud and we have a leadership position in cloud. So the largest player in the marketplace has got a very different cloud solution from the traditional enterprise solution. In addition to that, they continue to invest in other markets. And so the level of complexity that we’re feeling in the marketplace surrounding the largest competitor is very real and opens up a lot of opportunities. We’ve talked about some of the larger deals that we’re getting into.
We continue to move up market and you’ll see us continuing to do this with some of the announcements that will come out of Extreme, where in these highly competitive and highly contested processes, we’re coming out on top. And so you’re seeing the likes of Cisco and HPE and Juniper getting pushed back and Extreme winning and that’s part of how we’re upleveling our brand. So that’s one of the ways that we have confidence relative to the largest player. Everyone is very top of mind. The HP acquisition of Juniper. What that will mean. In our case, it means that one of our competitors will be going away. We see a lot of opportunities certainly over the next couple of years. They’re looking to rationalize their product portfolios. This is going to create opportunities.
In fact, it already has, where we’re already getting calls from customers, direct customers, and end users in the field, as well as partners who are concerned and very unsure about what does that product roadmap look like and what is it going to look like. And this gives us, these just create, they create more opportunities for us.
David Vogt: No. Great. That’s helpful. And maybe just a follow up. You talked about a strong E-Rates easing coming up and getting back to hopefully some degree of normal seasonality by the June quarter. Recognizing that obviously the first half of fiscal ’25 difficult comps on a year-over-year basis. Are you planning for what I would consider to be more normal seasonal behavior on a quarter-over-quarter basis as we get through June going forward or is there still some digestion from whether it’s order growth intake, underlying demand/channel digestion that we should expect as we go through the second half of this calendar year into ‘25? And then, just maybe one final one for Kevin if I could slip it in there. You mentioned, obviously, double-digit margins at normalized scale, I think the phrase was.
We just want to get some more color on how we’re thinking about it, because I know at the Analyst Day, obviously you guys had talked about margins above, let’s call it, fiscal ‘22 levels back into mid-teens, but just wanted to get more color on what scale do you need to get to you to get back to margins that are more robust than, let’s say, fiscal ’22?
