Mike Berry: Well, keep in mind, Ananda, all this is related to the cloud ARR. This is not the Hybrid Cloud. And this is more of just us talking about when we expect it to come back in the second half. And again, because of the large project base, that’s really the nuance on this more than anything versus us calling, hey, we expect to see things pick up after April.
Ananda Baruah: Got it, got it, got it. Okay, cool. Thanks guys. Appreciate it.
Mike Berry: Thank you.
Operator: Our next question will come from Jim Suva with Citigroup. Please go ahead.
Jim Suva: Thank you. Good afternoon. George, on your outlook and Mike, on your outlook, you mentioned about slowing economic comments, which is understood. Any thoughts around inventory digestion, is there a sense that there’s inventory digestion out there. And if so, how long or any double ordering, or is it just purely economic pausing and elongation of cycles?
George Kurian: We did not see any order cancellations or any of those things. As we have mentioned repeatedly, we have good line of sight into our customer’s spending priorities and behaviors and are directly engaged with the largest of them. I think as we saw in this quarter, and we continue to be cautious about looking at the second half of the year. These are clearly related to IT budget revisions, right, where they are reducing deal sizes or scrutinizing projects and things, we’ll defer a portion of that project to a subsequent quarter or a subsequent part of the calendar year. So we have good visibility into the activities in our customers, and we did not see cancellations of orders because of prior orders or double ordering.
Jim Suva: Great. Thanks. But on the inventory digestion, any thoughts of — were there any inventory that’s still being digested that may allow corporate or service providers to prolong these revisions, or is any concern about inventory out there?
George Kurian: Typically, during macro situations like these, we have seen customers sweat their assets. And so what we mean by that is they will drive a system to a higher level of utilization and so that they can defer either capacity augmentation or system upgrades for a period of time. Now that’s not forever, right? Storage is consumed because data keeps growing. And so there’s always that trade-off. We certainly see some of that behavior going on. Jim, I think, certainly in our service provider segment, we see that. And in some of the hi-tech verticals, we saw that as well.
Jim Suva: Great. Thank you so much for the details and clarifications.
George Kurian: Yeah. Thank you.
Operator: Our next question will come from Tim Long with Barclays. Please go ahead.
George Wang: It’s actually George Wang on for Tim Long. I have two questions. Firstly, George, maybe you can elaborate on the current state of deal integration in terms of Spot, Instaclustr. And any thought process behind the following deal until FY 2024?
George Kurian: Listen, we have a good portfolio of technologies already. And what we are really focused on is sharpening the use cases that are best suited to the current macro environment and making those use cases easy for the customers to adopt, expand and renew, right? And that operational focus is our highest priority. There are some — there’s work to be done to integrate the CloudCheckr capabilities into the Spot suite so that it becomes one broader offering rather than two parallel offerings. We have made good progress along the way, but there’s more work to be done. In Instaclustr, there are two unique value adds that we bring. One is the integration of our cloud storage services and Spot services into Instaclustr. And the second is the fact that it is a truly open-source data services platform.
