Fahad Najam : I have one more follow-up. François, now that you’ve had a few years post NGINX, Shape acquisitions under your belt. Can you maybe give us an update on how the progress is in integrating these acquisitions into F5? Is it — are you able to sell and integrate these acquisitions and upsell your solutions? Any update on how the integration of these assets have gone? And how do we think about next year — sorry, fiscal ’23?
François Locoh-Donou: Yes, absolutely. So let me take them quickly in order. I would say on NGINX and Shape integrations are largely complete. And so on NGINX, you’ve already — so they’re complete both from a, if you will, product perspective in terms of capabilities, we have ported from F5 or BIG-IP onto NGINX, so we can offer, for example, security on NGINX. And increasingly, we’re offering our customers a single pane of glass to be able to get visibility on both NGINX and BIG-IP deployments. And they’re also complete from a go-to-market perspective whereby we have now enabled our mainstream go-to-market, marketing and sales resources to be able to promote and engage customers on NGINX. We’ve done the large thing on Shape, we’re a little behind that, but I would say almost 80% there where we now have the integration complete.
Shape is available in BIG-IP. Our customers who have BIG-IP can turn on Shape and tie more capabilities quickly. Shape is also available in our Distributed Cloud platform as a standard anti-bot defense offering. And we’ve also done a lot of the go-to-market integration. By the way, those integrations from — when I say from a go-to-market, they are quite critical because they have allowed us to continue to drive better operating leverage from a sales and marketing perspective. So if you look at our sales and marketing expense, I think it was 31% or so of revenue in 2020, and it’s 29% in 2022 despite the revenue pressures we had because of supply chain. So you see operating leverage there. And you look at our overall OpEx as a percentage of revenue has gone from roughly 54.5% in 2020, down to 50% to 51% implied in our FY ’23 guidance.
So the integrations have also enabled us to drive the right synergies and operating leverage. And then in terms of the — I don’t know if you asked about Volterra, of course, is newer. And so we’re still going through that, but we’ve already done a chunk of the integrations by deploying all of our security capabilities onto that platform that we call now Distributed Cloud, and we’re getting quite a bit of traction where all of that is going, is that ultimately, we are going to offer our customers a single console and a single pane of glass from which they can manage all their security policies from which they can get visibility to all their deployment with F5, whether it’s hardware, software or SaaS and whether it’s in legacy or modern environment.
And in that regard, we’re positioning to be quite a unique player that can cover all these models in a way that’s agnostic to the underlying infrastructure.
Operator: Due to time constraints, we will be taking our last question from Ray McDonough with Guggenheim.
