Antonio Neri: And in 2022, we have shown that we are the best — are executing that strategy. No question.
Jeff Kvaal: Thanks, Aaron. And Chuck, why don’t we make this the last question?
Operator: Yes, sir. Our final question will come from Amit Daryanani with Evercore. Please go ahead.
Amit Daryanani: I guess, my question is really around the Intelligent Edge business and maybe two parts. One, if you could just talk about the 23% growth here is fairly impressive. Any details you can give on kind of what is driving that from a product basis or even backlog versus end demand would be really helpful to understand. And then, Tarek, if I remember, at SAM, you talked about mid-20% operating margins in Intelligent Edge over time. As you look at the path from 13.3% to mid-20%. What do you need to get there? Is there a revenue number or something else just helpful to understand the margin expansion bridge from here? Thank you.
Antonio Neri: Yes. Let me start, and then Tarek can talk about the margins. I want to be clear, the Edge, 100% demand-driven. Has nothing to do with backlog or any of that. The order book continued to grow in this business. And we are winning. We are taking share. And the reason why we are taking share is because we have a true differentiated value proposition that’s built on three particular layers of the architecture. One is the unification of the connectivity layer with wireless LAN switching and one SD-WAN capabilities. These are both organic and inorganic investments we make over time. Remember, we did the Silver Peak acquisition. We have unique differentiation through our security layer with SASE through both organic and partnerships. And then we have a best-in-class AIOps. That’s delivering tremendous value for customers to drive new experiences, to automate everything they do across the enterprise and is 100% driven by the demand at this point in time.
Tarek Robbiati: Yes. So, let me elaborate on what Antonio said with regard to your portion of the question that pertains to operating margins. Our operating margin for the Edge was 13.3% in the quarter. It was up annually by 2.4%, right? It was down sequentially 3.2%, but it was up annually 2.4%. I think here, you have a mix effect that is at play between as-a-service offerings and NaaS offerings that play a role in the way the margin fares in the short term. It obviously — if we’re entering the NaaS market, that is because we expect to see the margins — the gross margins of NaaS to improve over time. So that is one factor. The other factor that has affected the margins very short term, very tactically in Q4 is logistics costs.
And I flagged that in my script, logistics cost in Aruba were higher than we would have liked. But that, again, is changing. And so, we expect Aruba to perform as a Rule of 40 company moving forward. And that’s the ambition that we have in the medium to long term, which is to maintain high-double-digit growth in Aruba and operating profit margins in the mid-20s range. We’re comfortable with that outlook that we announced at SAM.
Antonio Neri: Well, thank you for all the questions and thank you for making the time today. I want to close with a couple of more additional thoughts. Obviously, we had an outstanding quarter, an exceptionally well-executed quarter for us with record-breaking results across key performance metrics. But when you reflect back, and this is my 20th quarter as the CEO reporting earnings, this is a combination of many things we have done over the last few years. It’s not just a onetime thing. When I think about that, first and foremost, we have a clear strategy. We have been executing and accelerating and is winning in the market and is winning with customers. When you have twice a month of logos that we had at the beginning of the year, that tells you customers are entrusting their transformation to HPE.
