Ruplu Bhattacharya: It’s actually Ruplu filling in for Wamsi today. Can you talk about the component shortage environment that is still affecting maybe ISG? And if anything, on the CSG side, did you have any revenue that you left on the table because you weren’t able to get all the parts? And then just on ISG, you talked about backlog reducing this quarter. How far would you say that we are out from backlog normalizing? And do you think you’ll get any support on that on the server side, or is it — or the backlog is all on the storage right now? Thank you.
Jeff Clarke: Sure. Let me try to break that down those multiple questions and at least as I think about supply and where some of the shortages are. If I look at the CSG business, again, largely a handful of minor exceptions, supply is ahead of demand across consumer PCs, commercial PCs, displays, docs, to the point that we’re now able to readjust our freight networks to take advantage of that. We’re in a good position. Servers, we had — as the team mentioned, we talked about backlog and backlog reduction. I tend to think of it — since you asked about supply, where are the hot spots in supply. They tend to be in power supplies, they tend to be in the power ICs and high-performance NICs. Those are still constraints in the marketplace today.
I think we weathered the storm quite well throughout this period of time and particularly in Q3 and it allowed us to maximize server shipments. In storage, the shortages would be in these custom ASIC parts. So, think of it as FPGA, CPLDs, those types of devices. The best way we translate this to our customers is in the form of lead time. I don’t think — I can’t remember the last time I was in front of you all and said the PC product line is essentially on standard lead time. It’s been a long path through this COVID supply chain challenge time to be able to say our PC product line is on standard lead time. Our server product line, a large percentage of that is on standard lead time, and it will improve throughout the quarter as well storage.
So, if I think about it in terms of specific backlog, we are at normal backlog in PCs. I think we’re at normal to near normal backlogs in servers and a slightly elevated backlog in storage. I think that answered all three of your questions.
Operator: We’ll take our next question from Simon Leopold with Raymond James. Please go ahead.
Simon Leopold: I wanted to see if you could maybe talk to the general idea of why storage would or would not be correlated to servers, in the sense that you’re seeing slowing demand in your server business, should that signal coming or threats to the storage business, or should we think of them as trending differently? And if so, why? Thank you.
Chuck Whitten: Yes. Look, Simon, I would say, look, we would never argue that storage is immune to the broader IT spending dynamics that are out there. What we would say is from where we sit right now, it’s held up better in our Q3. I think you’re right, historically, there’s been a correlation, but it tends to have less amplitude than, say, our commercial PC market or the server market. Clearly, right now, data is exploding. The world needs more storage. And so, when we flash forward to what’s implicit in our guidance, we’re anticipating a seasonally strong storage quarter in Q4. And so, I think while you’re right, historically, there’s been a correlation between our server and storage business, at least from where we sit right now, we’re still seeing strength in the storage market.
