Over the last couple of years, if you just look at revenue, of course, there’s been substantial disruptions. The pandemic has been a positive one. The supply chain has been a negative one. The macro has been a negative one. But if you ignore the short-term disruption, then you just look at a long-term trend of the number of hardware units you have out there, you should think about it as a kind of declining in the mid-single digits. Now I would add though, Simon, that part of what we think is an important strength of the F5 model is that we now deploy in hardware, in software and Software as a Service. And we’re seeing that customers really value the flexibility that they have in the F5 model because not all applications are in the same environment, and they want the ability to something to have applications funded by hardware in their private data centers and maybe other applications supported by software or SaaS.
And we’re seeing inside of a single large enterprise two or three of these deployment models come through. And what customers value is the consistency of delivery policies and security policies across these consumption models. And so we’re going to continue to offer this flexibility and its core to how we intend to continue to drive earnings growth in the business.
Simon Leopold: That’s helpful. And just maybe as a follow-up, in terms of the software trajectory, what sort of signals might you suggest we look for in terms of sort of things getting better and things getting back on normal apart from just sort of the macro? What kind of advice would you give to the analysts?
Frank Pelzer: Simon, in terms of specific metrics, more to come. In terms of the delivery approach that Francois was describing, one of the reasons why we have gotten away from trying to specifically guide to a mix is because, again, we give customers flexibility and we do not try to specify which one we think is the better approach. We leave that to the customer to make that decision for themselves. And so we will see some fluctuation and volatility between what software and what’s hardware. I think when we actually see the SaaS business, particularly around Distributed Cloud, over the next few years become much more substantial, that volatility will continue to decrease as more and more of that business will come to us in a ratable fashion. And so as that business continues to grow, you can be looking to us for more metrics around that. That will give some more forward looking points — data points where that expectation and that software revenue will come.
Simon Leopold: Thank you very much.
Operator: Thank you. Our next question is from James Fish with Piper Sandler. Please proceed with your question.
James Fish: Hey, guys. Following up on a few of the questions asked here already. But what are you seeing demand wise or demand stabilization between the product side, meaning on the ADC side versus security? And really asking also, what percentage of your customers are actually using products from both as we’re trying to understand what penetration opportunity you guys have left?
Francois Locoh-: Hey, Jim. So let me give you a sense by product in terms of what we’re seeing in terms of demand. So we’re — as I said, the hardware demand has been soft. Where it has been the softest is in the ADC space, where customers are really looking to delay purchase orders and where they can sweat their assets. Security — stand-alone security has been more resilient than in ADC. But the security that is attached to ADC, of course, is affected in the same way that ADCs are. We have also seen strong demand for NGINX. We had quite a strong quarter on demand for NGINX for largely modern application deployments, as well as renewal and expansion from existing opportunities. And where we are seeing also very strong growth, but of course, on a small base is in our distributed cloud opportunity, which is really in security, offering application security in front of us, a lot of applications but deployed as a service; increasingly seeing more opportunities for API security, which is a nascent but growing and exciting market; and also securing multi-cloud networking, so connecting applications across cloud and doing so in a secure way.
