George Kurian: I think overall, year-on-year, I think ’23, we expect to be moderated and down relative to ’22, certainly at the start of the year. ’22 had a good start to the year. And so our start of the new calendar year, which is baked into our outlook for the second half of fiscal year, we think people are going to be more cautious overall, Wamsi.
Wamsi Mohan: Okay. Thank you so much, George.
George Kurian: Yes, thank you.
Operator: Our next question will come from Shannon Cross with Credit Suisse. Please go ahead.
Shannon Cross: Thank you very much for taking my question. I was just wondering what you’re hearing from customers on your Keystone offering. I think, as a service offerings, they are becoming a bit more attractive in an economic downturn. So I’m wondering what kind of traction you’re seeing there?
George Kurian: It’s early, but good traction. We are focused with a few channel partners who are enabled on selling Keystone. We’ve had good customer wins, good momentum in terms of our offerings. We brought new innovation to market in the last quarter, both a unified control plane so that you can use either a Keystone-based consumption offering in your environment or our public cloud offerings, and you can move workloads and licenses across those. So a good amount of innovation. And you’re correct, we’ll continue to see opportunities to help customers around whatever their kind of buying model is in this environment.
Shannon Cross: Great and thanks. And I look forward to seeing you on Thursday at our conference.
Mike Berry: I as well look forward to seeing on Thursday.
Operator: Our final question will come from Kyle McNealy with Jefferies. Please go ahead.
Kyle McNealy: Hey good afternoon. Thanks very much for the question. You touched on this a bit earlier, but not directly. But does the budget scrutiny that you’re seeing right now from some subset of customers’ impact their decisions for provisioning the mix that they’re provisioning of all-flash versus hybrid arrays at least for new projects. And I know you mentioned that our all-flash portfolio has leading cost efficiency, but do you expect the mindset to change on how much customers are willing to embrace more all-flash? Will the pockets of slowdown that you’re seeing potentially pull everything back and the mix stays relatively on the same trajectory? Thanks.
George Kurian: I think — thank you for the question. We didn’t see customer’s sort of reevaluating technical decisions about what type of infrastructure to buy. I think that allowed the technical team to choose what was the most value, and they make decisions based on the relative cost effectiveness of disk versus flash. I think what we saw was an approval level going up for the same deal what would have been approved by a director, now got taken up to VP what was approved by VP, probably goes up to a CTO. That is what elongated deal cycles in the quarter and/or people shrinking how much they wanted to buy at one time and phasing projects into multiple phases.
Kyle McNealy: Okay. Thanks very much. That’s helpful.
Kris Newton: All right. Thank you, Kyle. I’m going to give it back to George for a couple of closing thoughts.
George Kurian: While there are near-term economic challenges for every company, we know that our opportunity ahead is substantial, durable and growing. The fundamentals of our business are strong and the value we bring customers is undeniable. Our strategic growth opportunities all-flash arrays, cloud storage and cloud infrastructure optimization are tightly aligned to customers’ top priority and represent the potential for long-term sustained and profitable growth. We will continue to be disciplined stewards of the business, focusing on our strategic growth opportunities while continually optimizing our operating costs to drive shareholder value. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
