Chuck Robbins: Thanks, Michael. On the share gains in the enterprise networking space, which is what you’re asking about, we expect Q2 will be equal to or maybe slightly above the incremental gains that we see when those numbers come out based on some estimates that we have done internally. I would say the thing that is really helping beyond being great products, but we have done a couple of things. Number one, we have begun to deliver on monitoring and then subsequent management of our Catalyst, the traditional Catalyst portfolio with the Meraki dashboard. And that’s a real advantage for customers. It allows them to run a hybrid of the two portfolios. It allows them to have visibility from one dashboard to both sets of portfolios.
And so that’s been really well received. It has been a key driver in significant improvement in our renewal rates on the software side. And while I’m talking about it, I thought I would share one milestone with you. I’ve been asked for a few years, when do we think the software renewals in the enterprise networking space would be meaningful. And FY’24 is the first year, I think, it will be meaningful. So just to give you a perspective on it. We have we expect this year to renew enterprise networking software at close to $1 billion. So the transition that we’ve been going through for all these years is going to hopefully begin to start to pay solid benefits for us going forward. But that’s what’s going on in that portfolio. Scott, you want to talk about orders?
Scott Herren: Trajectory of orders, yes. And, Michael, thanks for that question. What I’d say is, if you remember our commentary from the last call, we said there were kind of three things going on inside product orders. One was the lead times were normalizing, going from being fairly lengthy to going back to a normal level, which, of course, if the lead time yesterday was 30 weeks and today it’s 10 weeks means you don’t have to place another order for 20 weeks. Those are mostly normalized. They will finish being normalized certainly in the first half of fiscal ’24. And so that effect will be dampened. The second is backlog. And as we were still sitting on excess backlog, and we still do, but we’ve obviously been working our way through that and delivering product to customers.
As we get their backlog orders in their hands, they can complete that project and then place the order for the next project. And so that’s also been a little bit of a headwind to bookings, and then it’s whatever is happening in the macro would be the third factor. We think those first two will normalize in the first half of fiscal ’24. Lead times will be normalized, certainly by the time we get to the end of the first half and much of the backlog — the excess backlog will ship out during the first quarter of fiscal ’24. So I think we’ll have a clearer view, and I expect to see more normal ordering patterns. Of course, we don’t guide orders, but I expect to see more normal ordering patterns in the second half of the year.
Michael Ng: Okay. That’s all very helpful. Thank you, Chuck. Thank you, Scott.
Chuck Robbins: Thank you.
Marilyn Mora: Great. Thank you. Let’s go ahead and take the next question.
Operator: Ittai Kidron with Oppenheimer. You may go ahead.
Ittai Kidron: Thanks, guys. High energy, I like this. Chuck, maybe you could look at — talk about the RPO. Very strong performance there, especially when you look at the same metric a year ago. Maybe you can unpack this a little bit in the context of a few metrics, meaning duration of contracts customers are willing to go into now, size of deals that are willing to move into now. I’m just trying to kind of get a little bit into the elements of this significant increase in RPO. Appreciate it.
