Simon Leopold: I wanted to see if you could maybe address the elongation of decision process, whether or not there’s variation in this behavior between existing customers and new customers? Or whether you’re seeing any kind of patterns by customer types, verticals or something discernible like that? And then I’ve got a very quick follow-up.
Rajiv Ramaswami: Yes, Simon, that’s a good question. I don’t think we have that level of visibility because a lot of this is somewhat anecdotal, and we’ve seen it for both new and for existing customers, right? Clearly, for us, typically in the past, expansion in existing customers is generally easier and quicker compared to new, right, net new prospects. But we are seeing an elongation in deal for both, and it’s — but I will also say, it’s a very modest elongation at this point. So it’s just that, for example, just anecdotally, well, something that a VP may have budget for at a VP level and say, yes, I’m going to go ahead and do it. Now with being scrutinized at the CFO level, say, okay, do you really have to go spend this money now?
Can you wait? Is there a TCO benefit that you can quantify for me quickly? So that’s the kind of, I think, dynamics that we are seeing. It’s hard to parse out specifically as it varies a lot by customers, but we’re seeing this as both new and for expansion.
Simon Leopold: And then just a quick one is, on this third-party software issue, do you have insight into whether or not this affects your cost of goods sold or the R&D line? Or you just don’t know that yet? I guess I’m sort of trying to figure out where these charges would show up.
Rajiv Ramaswami: Yes. Rukmini?
Rukmini Sivaraman: Thank you, Simon. Yes, at this point, given this is ongoing, Simon, we’re not able to get more specific on the types of expenses or where the P&L, it might fall.
Operator: Our next question comes from Ruplu Bhattacharya with Bank of America.
Ruplu Bhattacharya: I’m filling in for Wamsi Mohan today. Rukmini, one question for you real quick. Just to clarify on the third-party software issue, do you think that this impacts the historical last couple of years’ financials? And will you be restating your financials? And maybe does this impact margins lower and earnings lower? And will you be restating that when you file your statements?
Rukmini Sivaraman: Thank you for the question, Ruplu. Again, this is — this review is ongoing, and so we really can’t comment on any of that, Ruplu, but we are working quickly and diligently to make sure we’re able to provide more clarity on all of this. But at this point, there’s really nothing more I can add on the specifics.
Ruplu Bhattacharya: Okay. Okay. Maybe one for Rajiv. You talked about customers inspecting deals more and a slight modest increase in the sales cycle. When I look at the new customer adds, right, this quarter, it was like 490, which really is the lowest quarter for new adds going back to 2017. So can you talk about like any thoughts on that? I mean on that — on the lower number of net adds this quarter, any competitive dynamics you’re seeing? Or could this also — any thoughts on FX because you price in dollars and with the dollar strengthening recently, how is the pricing environment? And are you having to price lower? So just your thoughts on the number of new ads and the competitive dynamics that you’re seeing and then pricing.
