George Kurian: In Hybrid Cloud, as I noted in my comments, we impacted Astra Data Store. We are able to solve the Kubernetes use case better through a combination of Astra Control, which we continue to invest in, and ONTAP rather than a completely separate architecture like Astra Data Store. And then, we had a small business in SolidFire that we continue to sustain, but we don’t plan to grow going forward.
Mike Berry: Shannon, on your question on stock-based comp, every six months, we have to do a look back on ESPP program. And there was about an $11 million, I’ll call it, catch-up entry in the quarter to take into account the lower price of those purchases. And you’ll see that typically every six months when we do our ESPP, depending on the price movements of the stock during that period of time.
Shannon Cross: So that catch-up is done now. And assuming your stock stays where it’s at, there will be another catch-up? So you’ll be at the $50 million or $60 million level going forward? Just to be clear.
Mike Berry: So, it stays in the run rate. It won’t drop down. And what happens in six months is dependent on where the stock price is at that purchase date.
Operator: The next question will come from Nehal Chokshi with Northland. Please go ahead.
Nehal Chokshi: What has been the year-over-year demand trend in the month of February relative to the January quarter? Has it worsened as implied by the guidance even with the C-Series now available?
George Kurian: We’re not going to comment about what’s happening this quarter. I think broadly speaking, we’re cautious, as you can see in our guidance, about the pattern of IT spending for the year. I think many parts of our business performed well, but the large enterprise, particularly in the Americas, high tech and service provider segments, and certain parts of Europe, particularly UK and Germany, have not performed as well. And we’re concerned about how spend — how robust spending will be there in the short term.
Nehal Chokshi: Okay. And what’s the postmortem on why you guys were late with the lower capacity product on all-flash arrays?
George Kurian: We have hybrid flash arrays that serve those use cases. We believe that we could continue to support those use cases with hybrid flash. A few months ago, we — a few quarters ago, we created a capacity flash product. We started to see strong pickup, but it was at the high end of our lineup, and we realized that we needed to introduce a full lineup. And that has taken us a little bit more time than we expected. So, I feel good about our lineup now. It is the most comprehensive in terms of functionality, use cases, guarantees and price and capacity points in the market.
Operator: The next question will come from Ananda Baruah with Loop Capital. Please go ahead.
Ananda Baruah: Hey George, just sort of circling back to your remarks about concentration with financial services and service provider. Do you feel the company has greater exposure to those end markets than your key competitors? And is there anything that you can do or that you’re focused on to try to diversify that exposure? And then, I have a quick follow-up. Thanks.
