Ken Miller: Yes. It’s a really good question. And quite honestly, if something, I don’t have a perfect answer to you, but I’ll let you know what I expect to happen. So I absolutely expect backlog to start to normalize, and I expect us to — backlog to reduce in 2023. I still expect that we’ll exit the year with what I refer to as elevated backlog. I don’t exactly have the number for you, but I do think we’ll exit the year elevated. So it will start to reduce, but remain elevated, would be my expectation. And what the new normal is hard to say. And as you mentioned, historically, we’ve been in that kind of $400 million to $450 million range for quite some time. I would like to think that the new normal is going to be greater than that, maybe closer to somewhere between $500 million and $1 billion as I think customers understand the value of giving us orders a little bit earlier, giving us a little longer lead times to react.
I’m hoping that the new normal is a little less frantic as it was just a few years ago when we were starting the quarter with not enough backlog. So I feel good about our backlog position, obviously, the variability of it. I think it will decline throughout 2023 but remain elevated and work finally settled a couple of years from now, it’s hard to predict, but I would like to speak more than where we were in that 400-level.
Operator: The next question is coming from Amit Daryanani with Evercore.
Amit Daryanani: I guess the first one I had was when you put talked about the order trajectory, you talked about auto going down on Service Provider and Cloud side, but they’ve be running to be flattish on the Enterprise side. I was wondering if you can talk about why are you seeing such a deviation in auto trends between those 3 buckets? And on the Enterprise side, is it flat because you’re picking up share? What’s to the better performance there versus other 2.
Rami Rahim: Yes, I’ll start. So SP and Cloud, primarily because of the fact a year ago period and before that, they were just doing more ordering for multiple quarters to get ahead of the supply constraints that we were facing. And I think it’s not unusual because typically the kinds of projects that SPs and Clouds are engaging and tend to be just very strategic, very large. They require a lot of upfront planning and for that reason, that early ordering was just happening in more abundance. It also did happen in the Enterprise just not to that same extent. I think the second part of your question is about sort of the order momentum we’re seeing in the Enterprise and why. I think we’re just executing exceptionally well on the Enterprise across the board, pretty much every solution area, whether it be data center, are, of course, our AI-driven enterprise solution, even in the WAN, we had a great federal government quarter, for example, we’re sort of firing on all cylinders.
Our competitive differentiation and our solutions, especially in our AI-driven enterprise solution continues to work really well for us. And for that reason, Enterprise is now Juniper’s is the largest segment. A few years ago, there was actually some doubt about whether Juniper can win or succeed in the Enterprise, and I think those doubts are pretty much behind us at this point.
Ken Miller: The only thing I would add is we’ve had a lot of momentum in Enterprise for the last several years, and we actually expect 2023 to be a growth year for Enterprise, both from a bookings, order perspective as well as a revenue perspective and I know we aren’t naive to some of the macro conditions out there. But given the product differentiation we have, kind of the market share we have, the opportunity in front of us, we feel pretty confident we can continue to grow the enterprise in 2023 despite kind of some of the macro conditions.
