Ken Xie: I think in the 2014, 2015 last the outbreak of a weather target so many case, which a lot of enterprise tried to upgrade from the traditional connection-based firewall to the next-gen firewall, which including some prevention and other things. So that’s where it’s more like kind of refresh more in the enterprise area. So we do see some strong growth there after the severe issue. And then by this time, we see there’s a few things. One is really during the pandemic, there’s a new infrastructure build supporting a homework anywhere. At the same time, the ransomware attack quite broadly hit the whole industry. And another part, we keep on seeing the convergence, which is like SD-WAN, the 5G, the WiFi and also internal segmentation.
So that’s a much broader used case of the firewall deployment and also including OPG, a lot of more devices being connected. So we feel this time it is really kind of a more broad firewall used case kind of apply to the whole infrastructure. That’s what we kind of more emphasized the convergence is a little bit different than the last time it’s like eight, nine years ago. So that’s why we feel this time probably will be more smooth transition because the traditional firewall, whatever will not go away. And at the same time, that’s more used case convergence into the traditional networking area, expanding to the OT some other area, we’re helping keeping driving the product revenue growth and then followed by the additional service revenue. So that’s the chance we’re planning.
Raymond McDonough: That’s helpful. And if I could, maybe a follow-up. You talked a little bit about the momentum in large deals and enterprise deals in ’22. But given the macro environment, could you compare and contrast maybe Keith or Ken behavior you’re seeing from larger customers and maybe those on the smaller end of the spectrum. Are you seeing more deal delays upmarket, more propensity to consolidate functionality at the lower end? Anything — any more color would be helpful.
Ken Xie: Yes, it’s definitely helping the customer lower the total cost of ownership, both on the management cost and also on the product service cost, which we have here an advantage over the competitors. So that’s where we see a lot of a big enterprise customers. They definitely want to — when they see the renewal, when they see all this — need to add additional protection for the infrastructure, we do see this like how to have a better total cost of ownership and at the same time, leverage a single integrated platform, automated platform to offer better security networking together. Even there’s a trend to merge the traditional network operating team and security operating team together to making the stock and not kind of combined together and also converge on the traditional networking and security together.
So we do see some trends happening in the big enterprise and which we kind of developed technology and the long-term investments starting to see. I mean, stating benefit for the trend.
Keith Jensen: Great.
Raymond McDonough: Yes, go ahead.
Keith Jensen: Like everybody else, I mean, you’re reading about people talking about deals taking longer to get across the finish line and more approvals and so forth. And I don’t think we were immune to that by any stretch of the imagination. Keep in mind as we’re going through as the world is moving through this. At the same time, Fortinet’s kind of expanding from just seven figure deals. And I think we talked about 546 seven figure deals or more last year, if I remember correctly, a huge number. Now adding more and more eight figure deals. So I think we’re probably seeing huge opportunities, but we’re also getting exposed to how that approval process works and how we manage with our sales team, our customers through that process.
