Operator: Our next question comes from Jason Ader at WB.
Jason Ader : Yes. Thank you. Sanjay, can you give us just a quick competitive landscape and market share update both for the enterprise side of the data protection market and also the mid-market?
Sanjay Mirchandani: Yes. So it’s — from a competitive point of view, I shared some of the direction that we were taking, where the forces we see in the market and how our portfolio lines up very uniquely, where customers are headed and the hard problems they have. Over the course of the past couple of quarters, we’ve done a few things that are that are separating us in the short term very well. So I’ll give you an example. The — we launched a support for data domain — boost on data domain, which is — which gives us incredible performance in that installed base, and that’s a large installed base. And we’re seeing a lot of good traction, for example, in that, okay? That’s just one example. We’re also seeing some of our competitors struggle in a tough macro environment, okay?
We’ve always been focused on responsible growth, and we’ll continue to. We continue to innovate. We continue to streamline our go-to-market. We’ve ramped up our marketing. And we’re definitely taking share in SaaS. It’s white space. We’re growing there. And I think as the platform goes with the new security enhancements that we’ve put out, nobody does what we do. And now coming in the fall, we’ve got a whole bunch of new capabilities that we’re bringing to market based on customer input. So we feel very well positioned technically. And I’d say, over the last couple of quarters, we’re definitely taking share from some of the more legacy players.
Jason Ader : Who do you run into the most in the enterprise? And then who do you run into most in the mid-market today?
Sanjay Mirchandani: I mean it’s never clear — it’s never just — nobody else there. It’s always competitive. You see the usual suspects. And as — and in the mid-market, we’re also starting to get some good penetration with Metallic. And so we’re seeing some of the smaller players, niche players there. It’s the usual suspects.
Jason Ader : Okay. And then, Gary, for you, just — did you provide any guidance on customer support — the customer support line for FY ’24?
Gary Merrill: Yes, absolutely. The trends that you see from a customer support line will continue into Q2 and into the back — into the back half of the year. I would expect that the customer support line will be down on a year-over-year basis for full year FY ’24, somewhere in that mid- to high single-digit range from year-over-year, which is kind of where we’re currently trending now though. I think one of the things that’s important and it follows up, I think one of the questions that Jim had asked about that customer support line is that is we’re quickly approaching where the majority of that line will become subscription revenue related from a customer support and not perpetual. And currently, we’re about 60% is perpetual. I think we’ll get to close to 50-50 by the end of the year or early next fiscal year, which then helps over the longer term actually to moderate that line and some of those declines will start to fade away.
Jason Ader : Okay. So just to be clear, when you do a term license, that’s a subscription, you separate out the support part from the software and that goes into customer support. Is that the right way to think about it?
Gary Merrill: Confirmed. Yes.
