George Kurian: We continue to have great engagement with our cloud provider partners. As I mentioned, customer acquisition continues to be a good part of our cloud business. The impact in the quarter is limited because the initial deployments are small. So that’s the first. Second, with regard to cross-selling multiple cloud services after the initial use case, we have done well, and I’m pleased with progress. In terms of the customers that we are engaged with on consumption, there is no churn difference, right? So, the pattern is they are reducing the performance level of the storage use case, but they’re not churning off our service. So, I feel really good. Actually, I think it’s the best part of being a partner is to help your clients use the right combination of services.
And then, in terms of penetration of our installed base, while it’s early, we continue to see that moving forward steadily. I think the penetration in our NetApp managed enterprise accounts is much higher than in our commercial segment.
Operator: The next question will come from Samik Chatterjee with JP Morgan. Please go ahead.
Samik Chatterjee: I guess I had two on the Public Cloud. And if I can just start with just the broader trends that you’re seeing in relation to Public Cloud and the pressures around consumption and optimization. It does indicate that not every use case that the enterprises were leveraging were critical in the cloud. I mean how do you think about some of the addressable market that you were defining around the cloud storage and CloudOps? Just in relation to that, I guess, enterprises don’t see everything as being critical in the cloud, and there’s a lot more room for optimization as is being demonstrated during these budget cuts. And I have a follow-up.
George Kurian: First of all, I think that the long-term trend towards cloud continues to be a strong trend. I think even if you look at the most recent data from analysts as well as from the cloud providers, the public cloud market growth is higher than data center infrastructure growth. So, that’s one. I think second is we are learning the behavior patterns of different workload profiles in our customer base. I actually think the fact that customers can spin up and spin down environment is a benefit to the cloud model over the long term because the real cost of operating a cloud environment will then be lower than what you would see on premises. We are, for example, being able to understand — and as we spread the consumption of our cloud services across a much larger customer base, the impact of any particular customers change in behavior will actually be much less than it is today.
So, we remain bullish about the cloud opportunity. We’re more sharply focusing our go-to-market resources to go after it and continuing to sharpen the customer success motion to allow our customers to benefit from the use of our technology more completely.
Samik Chatterjee: Okay. And maybe on the same line, just digging a little bit deeper. Like, what are you seeing in relation to sort of the difference in engagement on Spot versus Cloud Insights? And when you have net revenue retention rates of around 120%, like how does that break down between Spot and the rest of the portfolio maybe seeing a bit more challenges?
George Kurian: Spot has done well, and Cloud Insights has stabilized and met our internal targets. So, the shortfall was mostly from the cloud storage business. I think that in part, it’s the opposite, right? When people are concerned about cost optimization, Spot is a perfect tool for that, and they had a good quarter.
Operator: The next question will come from Krish Sankar with Cowen and Company. Please go ahead.
