Gary Merrill: Modest. I think it will be modest. There will be similar to the impacts on total revenue as the customer supports us. If we end up somewhere, say, this year at the high end of that $40 million to $50 million, call roughly $50 million. Then as we get into next year, we’re likely to be in that range, but probably more towards the lower end of that range. So you’re talking variability is not significant on a revenue number that’s obviously over $800 million.
Jason Ader: Got you. Got you. Okay. Great. And then, Sanjay, I’ve got one for you, just on the SMB and mid-market dynamics, less about competition, but it’s more about how SMB and mid-market customers are actually purchasing and procuring backup software and backup services. Can you just talk through, how you guys have — let’s call it, adapted your strategy because, it does seem like more of that market is shifting towards as a service offerings.
Sanjay Mirchandani: Sure. So for that particular segment, we’ve — I think we mentioned in a couple of calls prior to this, Jason, that we’ve invested in a velocity motion, which loosely translates to ISRs plus a channel motion that allows us to go up the velocity of the smaller customers. That’s number one. In addition, we’ve also been working with a growing MSP community and many customers, as you mentioned, like to work through that. The third is marketplaces as the hyperscalers sort of promote their marketplaces, we see customers being able to sort of tap into that motion and available software or SaaS right through that. So those are just some examples of how we’re enabling — our technology can be more accessible to our customers in the way they like to purchase.
Jason Ader: And one quick follow-up and I’ll see the floor. But on the metallic business, Sanjay, can you give us a sense of how much of that business is coming from sort of SMB mid-market customers versus enterprise?
Sanjay Mirchandani: I think it’s — if the trend has been fairly consistent, the enterprise side of our business is about one-third enterprise, roughly one-third mid-market, and one-third SMB. It’s not by design necessarily. It seems to be following that. And I’m actually quite pleased with it because it derisks our business but also gives us a chance to grow in the areas that we haven’t historically like the SMB and the lower mid-market.
Jason Ader: Great. Thank you.
Operator: Our next question comes from the line of Tom Blakeley from KeyBanc Capital Markets. Please go ahead.
Tom Blakeley: Hey guys, thanks for taking my question. Just a couple, Sanjay, if you could go back to that hybrid cloud journey answer you gave a prior call questioner. Is that company-specific, or could you talk to just the greater view in the industry in terms of things being complex and it seems to be a bit of a pause, hybrid cloud spend has received a bit of an uptick in the last few quarters, if not longer, as there’s been a deceleration in public cloud spend in general. I just wanted to, kind of, maybe if you could clarify that or give any color it would be very helpful. And then just secondly, for — on the NRR for Metallic, the split-up between capacity growth and new services, if you could? And if security, maybe it’s a premature question, but is security impacting that NRR, that would be helpful. Thank you.
Sanjay Mirchandani: Okay. Let me process those. So the hybrid cloud journey, my thinking there is the fall. The customers — think about it a little bit, first of all, as a trailing indicator. So it’s about utilization. It’s about workloads that use the commitment that customers have made in the hybrid cloud or the public cloud services. And what we’re doing is helping customers through those difficult journeys because as the easy workloads move to the cloud, it gets harder and harder to move entire stack of mission-critical capabilities and run them entirely on public cloud services or hybrid cloud capabilities. And that’s what I was referring to and we’re helping customers, whether it be through moving that data, whether it’s their infrastructure, whether it’s their data security, whether it’s applying intelligence incentive data management across that stack data into light.
Tere’s a lot of things that move into the hybrid cloud open up. And we’re across a lot of those use cases and a lot of those outcomes. So that’s where I was going. And it’s not so much a — whether it’s increasing or decreasing in spend from a public cloud capability, it’s really the utilization and making sure that customers are getting the value that they anticipated from that journey to the cloud. I was a CIO. It’s moving mission-critical workloads, into a cloud or any other platform is — it requires a lot of — it is complex and requires a lot of thoughtful list and the right choices. And that’s what we’re trying to help our customers with. So that’s my — I want to pause there. Did I cover your question?
Tom Blakeley: Yeah. Yeah. Just maybe a follow-up there, before we get to the NRR, does that imply from a trailing indicator perspective that there might be some pent-up demand for Commvault in that regard?
Sanjay Mirchandani: As the short answers, I would hope so. Because as customers move to the — and a lot of what we’re going to talk about next week, Tom, is about where we see the customer journey? Where we see them sort of having to make tough decisions? Where — what are the hard problems there helping them with — on data? Do they have to make choices between software and SaaS? The security models using AI. These are recovery capabilities when — in the life of cyber resilience. These are all important decisions that have to be made as the journey to the cloud becomes more-and-more pervasive for our customers. And we’re trying to be one to two steps ahead of them in anticipating that. So I would hope so.
