Dhrupad Trivedi: Yes. Yes, good question Anja. So, I would say generally what that has meant for us or what we hear from them is they are more thoughtful about leveraging their existing infrastructure more efficiently and longer and more effectively. They are more concerned than before about being more secure and managing that risk better. I think where they are more thoughtful or cautious is really around big projects that originally required them to move in to different ways of consuming IT and so forth. So, I think there is a more balanced view of many of our customers who plan to use their on-prem networks along with cloud versus sudden change and put everything in a different place, right? So, I think said differently, I would say they are making decisions that are more economic-driven than technology-driven.
Anja Soderstrom: Okay. Thank you. And in the past year you’ve been talking about UK displacing some competitors. Have there been anything to call out in the competitive environment?
Dhrupad Trivedi: No, I don’t think certainly in the last three, six months, we have seen any significant change in the competitive environment. I think the — I would say the market force in terms of demand and customers is stronger, but no real change on how we compete and why we win and all of those things.
Anja Soderstrom: Okay. Thank you. That was all for me.
Operator: Thank you, Anja. Our next question is from Hendi Susanto with Gabelli Funds. Your line is now open.
Hendi Susanto: Good evening Dhrupad and Brian.
Dhrupad Trivedi: Hi, Hendi.
Hendi Susanto: Dhrupad, may I inquire your insight on business outside of North America, I think specifically I’m wondering like how similar, how different? And then if let’s say if certain purchase orders or let’s see purchase delays maybe lagging like outside of America, meaning that we may see those trends later?
Dhrupad Trivedi: Yeah, good question. So I think, Hendi, what is unique is in North America we have a combination of factors, right, which is concern about inflation, interest and movements in response to try to manage that companies themselves, therefore, seeing a reduction in their demand, therefore, restructuring on the new size et cetera. So that the scale of all those issues combined is certainly not true elsewhere. So outside of North America when you look at Europe as well as Asia, yes people are concerned about global outlook but not to the degree where their cost of capital is escalating and they are worried about inflation cost on the input side being unmanageable and having to do big restructuring. So we saw a couple of examples of those in a couple of big telcos in Europe.
But outside of that I think we see the environment more normalized in the sense of purchasing decisions are made when they need to add capacity or they plan to add new security features. And, yeah, there’s more questions asked and more signatures but it’s not to the degree where we saw in the first quarter certainly right that US companies were themselves going through massive restructuring layoffs and all of that. So I think the North American environment is unique in that combination of factors even though yeah there is global pessimism and so forth. So that’s probably one element of it. The second element I would say is that a lot of the regions outside of North America were probably already more focused on using their infrastructure better while upgrading technology and less focused on wholesale replacement of technologies, right?
So in that case the shift is not that drastic up or down. And so, therefore, I think we see — to the degree that we can help them do the things that they need to do by upgrading is the best path for them. So I think we see that not as a concern that they’re going to see something dramatic later. You did see some of that right in a couple of European telcos going through big restructuring. But beyond that I think we don’t see anything similar to the combination of factors we are seeing in North America.
