François Locoh-Donou: Thank you, Samik. So in terms of where we saw softer demand in software, it was across the board in terms of verticals and geographies. So if you remember in Q4, I said the international EMEA and Asia Pacific, in particular, were quite affected we actually did see that clearly in North America as well this quarter. And it was also, I would say, across most of our verticals. I think it was more pronounced in the technology sector, large tech companies going through substantial revisions of their budget and to some extent, I would say, financial services. These are perhaps where the effects were more pronounced. In terms of the rest of the year, it’s too early to have full visibility on the rest of the year. I would say our expectation is that the dynamics that we have seen in our first fiscal quarter as it relates to software will largely continue in our second fiscal quarter. But beyond that, it’s too early to speak to the visibility.
Samik Chatterjee : Got it. Thanks for that, François. And for the follow-up, I mean, you mentioned customers are sweating the assets a bit more, which is sort of you are recapturing some of that on the services side. But in terms of the systems demand, and there is obviously a supply chain piece here. But what — how are you thinking about sort of the upside to system demand as some of the maybe software transformation projects get delayed and drives some level of sort of utilization of hardware appliances, which always had sort of great performance? So how are you sort of looking at the upside on the system side from that delay as well? What — how would you quantify that?
François Locoh-Donou: I think, Samik, the — in terms of the system demand, as we said earlier, we also saw softness in systems demand this quarter. So this effect on budgets and scrutiny from our customers at large affected both the software and the hardware demand to an extent. The upside in demand, frankly, is — sorry, in in hardware revenue for the year is we said at the beginning of the year, we felt our hardware revenue forecast was really a shipping forecast. And the upside and the stronger second half that we see in hardware is really driven by ability to ship more hardware. So you should see a step increase in our hardware revenue in Q3 and Q4 from the first half of the year because of the improvements we’ve made on supply chain.
In terms of demand specifically, I don’t think the pressures on software would necessarily create stronger demand on hardware at this point in time in the environment because I think our customers are really trying to sweat their assets and try and limit the utilization to not exceed the capacity that they already have in place to the extent they can. I think that can only go on for so long, at which point they will have to buy and add capacity. But I do think that — the improvement in supply chains and as lead times improve, we will see some demand that is latent that has been gated by the fact that we’re not able to ship. So a lot of customers because we haven’t been able to ship orders that they place two, three, four, five months ago, and they haven’t been able to project or implement our solution or not able to place the next order.
And I think as we resolve that, we should see some improvement there in demand from these customers.
Operator: Our next question is from Amit Daryani with Evercore.
