Howard Ma : Okay. That’s helpful. And for Sanjay, can you just talk about where Commvault is in with respect to the go-to-market evolution and if investments such as — you’ve — you’ve built out a dedicated inside sales force for Metallic. You have expanded partnerships with Salesforce and AWS and not to mention your exclusive relationship with OCI, are these already starting to benefit Metallic? Or are these additional legs of growth to come?
Sanjay Mirchandani: Little of both. So these are investments. They are fueling up multiple engines of growth for Metallic. Traditionally, our salesforce has carried the bag for Metallic alongside our partners. We’re seeing great progress with the large hyperscalers on go-to-market across the world actually. And we are also building out our own velocity inside sales engine as one of the other engines. So they’re all coming together nicely in different stages. And we think over the course of the year, you’ll see us share more about how these are working and coming together. So it’s a strategy we set, I think, late last year, fiscal year, and we’re rolling it all out as we speak. So we’re quite pleased with where we are. .
Operator: Our next question comes from Jim Fish from Piper Sandler.
Jim Fish : Gary, for you, with going through the transition, I know we’ve talked about this at great length, but where are you with perpetual maintenance contribution? And really, the crux of my question is when you expect perpetual maintenance to be the minority in the sense of ARR and revenue trends start to converge as opposed to the large divergence we have this year? And is there any way to think about what you’re seeing with perpetual maintenance renewal rates versus this point last year?
Gary Merrill: Yes. Thanks, Jim. I can handle that. So a couple of different pieces, I’ll talk to you first, and I’ll get to your specific question on revenue. But first, if you take a look at ARR, that we’re now up to well over 70%. We’re approaching 75% of our ARR from perpetual from the nonperpetual base, so from subscription and SaaS. So you can see we’re making excellent progress there. When I translate that to the P&L, and specifically how that gets reflected into that customer support revenue line, okay? A larger portion of that continues to be driven by subscription. And if I kind of take a step back and can maybe quantify that for you. About a year ago, I would say about 70% of our customer support revenue was driven from perpetual contracts.
That’s now down to 60% a year later. So we’re driving a minimum of about 10 points change in that balance. So I think where you’re going is as we kind of roll that forward a little bit over the next 1 to 2 years, we’ll start to see that subscription to be the primary driver and more than the majority of what’s driving that. some of what you’re seeing, Jim, if you look at kind of the year-over-year growth of that customer support line, you see it kind of start to moderate, right? It’s kind of in line with the expectations of that customer support line, but it’s starting to moderate with the annual decrease that we’re starting to see on a quarterly basis.
Jim Fish : That’s very helpful. And Sanjay, for you, how the new marketing campaign has gone in terms of building net new pipeline? And is there any concern around the Office 365 competitive environment that you have some of your competitors out there being aggressive on price or even Microsoft coming in and just one day kind of bundling it into, say, like an E5 or E7 or whatever they want to come up with at that point?
