Jeff Clarke: And maybe one quick point to add is — and we participate in the entire storage market, primary storage, data protection, increasingly the cyber resilience side as well as the HCI side. That broad portfolio, I think, helps us weather these cyclical changes more than others.
Operator: We’ll take our next question from Toni Sacconaghi with Bernstein. Please go ahead.
Toni Sacconaghi: Yes. Thank you. I’m just trying to square how much worse incrementally and sequentially you think demand may get in fiscal Q4. So, when I kind of look at your numbers, typically, you’re up from Q3 to Q4 by 5-plus-percent. So, let’s say, $1 billion. An extra week will probably add a minimum of 5%. I get — I know you have contractual business, but you have an extra week to deliver those on those contracts. So, that’s up another 5%. That’s $2-plus billion. So normal seasonality, you’d be up $2-plus billion, and you’re guiding basically to be down $1 billion. So it’s a $3 billion delta versus normal seasonality. So, I guess, a couple of questions. Does that imply that you see demand getting incrementally worse?
And are you anticipating any backlog drawdown? I get it was $1.2 billion in the quarter, but that doesn’t explain the $3 billion delta versus normal adjusting for the extra week. So, are you expecting any backlog drawdown in Q4? And how elevated in dollar terms is the storage backlog relative to where server was, entering Q3? Thank you.
Tom Sweet: Hey Toni, let me try and answer some of those questions anyway. So, as it relates to Q4, look, I think as we think about clearly, we’re projecting that the business continues to soften, right? I mean, I think that’s pretty apparent given the fact that I’m telling you now that we expect PC revenue to be sort of in the negative growth — mid-20s year-over-year negative growth. I’m expecting client — or I’m sorry, ISG to be roughly flat versus where they were this quarter. So the business is softening. I think we’ll manage our way through that like we always do. As it relates to the 14th week, there is a little bit of extra transactional demand in there. It’s not that significant. So, I haven’t done the math on your $3 billion or your — that 5% comment.
But look, what we’re trying to give you a point of view on is that we think demand does soften, right? And if you think about our guide for next year, that’s sort of court — follows from there. As it relates to backlog, look, we don’t forecast what happens with backlog in terms of how we’re going to talk to the Street about it. But we’ve just talked about the fact that in general, backlog is back in normal ranges. Yes, in storage is slightly elevated. So if there’s any opportunity, it would be there, but that’s very much going to be dependent upon linearity of the quarter and how the storage orders come in, which has always been an interesting dynamic with the storage business for us. So, what we’ve told you is our best point of view at this point in time, and we’ll continue to manage the business tightly as a result.
