And there are some use cases which are really easy to see the benefits from software development. It’s very easy to see the benefits from, the more advanced ones where some of these concerns exist. They basically customers move cautiously. So it will take time. These are multiyear use case developments. And so we feel good about where we are at the moment, and we’re just realistic that will lead time to build momentum.
Ananda Baruah: Yes. Thanks for the context. That’s helpful.
Operator: Thank you. And our final question today comes from Sidney Ho with Deutsche Bank. Please go ahead.
Sidney Ho: Great. Apologize if you have already addressed this. On the macro level, are you seeing any major differences between demand from large enterprises, small leading businesses in federal. Any particular verticals you would point out that shows particular strength of weakness both on the Hybrid Cloud and the Public Cloud? Thanks
George Kurian: The demand picture is still soft and mixed. Overall, we saw some improvements in the U.S., offset by some weakness in Europe. Nothing is not in the public domain. With regard to the customer time, large enterprise is still soft. Tech, for example, tech and service provider spending has not really come back. It is really a customer-by-customer situation versus a broad industry situation. With regard to the demand picture in midsized enterprise, our mid-sized enterprise business performed more robustly and secularly better than our large enterprise business. Public sector continues to be a work in progress. We saw some of the impact of the budget negotiations result in softer budgets for certain agencies. Our business performed well, particularly in the civilian agencies.
Sidney Ho: Great. Thank you.
Kris Newton: Thank you, Sidney. I’m going to hand it back to George for some final comments.
George Kurian: In closing, I want to thank the entire NetApp team for their strong execution and operational discipline in Q2, which drove revenue above the midpoint of our guidance and record gross margin, operating margin and EPS. Only NetApp delivers an entire architecture of unified data storage solutions, helping customers operate with seamless flexibility to deploy new applications, unifying their data for AI and simplify data protection in a world of limited IT sources, rapid data growth and increased cybersecurity threats. Innovation in our all-flash storage portfolio enables us to address a broader TAM and we continue to innovate and lead in Public Cloud storage services. Our go-to-market team is laser- focused on these positions of strength, enabling us to deliver strong results in the challenged macro landscape. Looking ahead, I’m confident that the momentum we saw in Q2 will continue through the remainder of fiscal year ’24. Thank you.
Operator: Thank you. And ladies and gentlemen, this concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.
