And so that, I hope, gives you some color on how this is going to play out. Coming to the next part of your question on Apptio. Look, the key drivers of this acquisition are pretty straightforward. When we look at and talk to CIOs, CFOs, CEOs, they’re all getting worried about their spend across the hybrid landscape. What do I spend on my first public cloud? What is it on my second? What is it on a SaaS property? What am I spending on my own data centers? So to give people a virtual cockpit that really lets them span across this, not just in terms of the third-party spend, but also the people and the process spend, is something they’re all deeply, deeply interested in. And more than a few CEOs I’ve talked to said it really gives them a handle on what’s going on and where the money is being spent.
That, I think, is going to play in right away. And you went right to the second value prop. With that spend data coming in across enterprises, the aggregate anonymized across the asset is the $450 billion. Now helping people benchmark, who does this better than you? Who does this process better? Who can do this with fewer total spend on a public or a private resource? It’s interesting to people because benchmarks is a great way to guide oneself to better performance. We expect that over time, we’ll be able to monetize that into a large language or a foundation model and be able to give people even better predictors or where they can take their spend, too. That’s why we are so excited about it. And I think the last part of your question was KPIs. Look, as we look to get Apptio much more international, while our footprint is, I’ll call it, maybe two-third, one-third outside the U.S. and in the U.S., they’re almost inverse.
So as we can put it into our distribution channel, that will be one big expansion as we go over the next year or so. The second one is we believe we have a great chance to also increase the penetration in our larger clients. So those are two big metrics while we continue the success in the growth rate they’ve had using their own channels.
Patricia Murphy: Thank you, Shannon. Let’s go to the next question, please.
Operator: Thank you. Next is Erik Woodring with Morgan Stanley. You may go ahead.
Erik Woodring: Good afternoon, guys. Thanks for taking my question. Arvind, I’d love to dig into how you guys are thinking about M&A today. Obviously, you announced the Apptio deal a few weeks ago. That largely probably takes transformational M&A off the table, but you obviously still have some additional dry powder to make other acquisitions. So maybe if you could talk about what your appetite is for further M&A. Are you thinking about any other end markets or solutions you target now? Is valuation becoming more restrictive for you? Maybe said differently, just what’s your message on M&A today post Apptio? Thanks so much.
Arvind Krishna: Erik, so I might sound somewhat repetitive to those of you who have heard me over the past two years on this topic. So if I just sort of maybe just step back and say, taking unusual actions off the table for a moment, we had talked about a total Finflex let’s call it, circa $20 billion over a three-year period. That includes the ability to raise additional debt if we so desired. We’ve been spending circa about $3 billion a year for the last couple. So that tells you what’s the capability and the flexibility that we have. You asked about valuations, and I hope my answer that tells you that we are always on the lookout, and I’ll get to which categories because you asked that also. On valuations, I wouldn’t call it so much that today is restrictive.
