Adhir Kadve: Okay, excellent. And then I just wanted to touch on one comment you made that the customers are getting value. What are some early learnings from that value that customers are getting? How is it helping their organization using these AI products?
Mark Barrenechea: Yes, I’ve given a few shout-outs in the script. One is particularly using our business network invoicing transactions and some of the wider network metadata to understand next generation of food and sustainability, going deep into contracts and understanding revenue opportunities and liabilities. But some of the early learnings are, one, you have to prepare, and you may need to consolidate systems. You may need to prepare your data a little bit. So preparation is important. Customers know what they want to do. There’s not a lot of vagueness out there on what customers want to do, but they’ve got to prepare. Second is do not separate your automation and your AI. You take data out of your automation, it immediately rocks like a cabbage, because it gets dated.
So I think that’s another big learning. And customers want to do it economically. And with more open source language models, more skills, we’re still staying on traditional processors, if you will, to manage cost, the customers want to do it reasonably. And this is just going to keep building on itself for Open Tech. So those are some of our learnings.
Adhir Kadve: Excellent, thanks a lot [Indiscernible]. Pass the line.
Operator: The next question is from Thanos Moschopoulos with BMO Capital Markets. Please go ahead.
Thanos Moschopoulos: Hi, good afternoon. Regarding the AMC business, are you seeing any kind of impact in that business, stemming from the fact that you’ve publicly announced your plans to dispose of it, or? I think you’re going to call out in that regard?
Mark Barrenechea: Yes, Thanos, thanks for the question. No, steady as you go. These are products and customers who have been benefiting from decades of investment and understand the long-term nature of the platform and it’s steady as we go.
Thanos Moschopoulos: Great and then just going back to the question regarding the slightly more conservative license outlook. Obviously, license is more volatile, it’s hard to forecast, but is there anything else you would point to? Is it a function maybe of clients preferring a cloud deployment model to a greater extent than you were initially expecting, or anything else you would call out in that regard?
Madhu Ranganathan: And, I mean, I’ll take the first part, Thanos, in terms of the customer trends. We’ll turn it over to Mark. Again, on the license, keep in mind Q3 has also been seasonally lower from a licensed standpoint, and that pattern also applies to Micro Focus in a licensed business, while the Micro Focus is doing very well, as I said, we are returning them to organic growth this year. So that’s really the Q3 seasonality that we are actually calling out. And also we’re seeing, you know, Micro Focus do very well with the renewal rates, et cetera. So really we wanted to expand the customer support line, those ranges there, and keeping our annual revenue, you know, within the range and accounting for more the license volatility is really what you see in the ranges.
I’ll also share that in my commentaries, we shared the number of over a million dollar deals both in the cloud side, as well as on the license side and both remain very strong, right? It’s more the Q3 seasonality that you’re seeing into the annual ranges. Does any of the comments Mark want to share?
Mark Barrenechea: Yes, sure. License has a role. And we work in very secure environments. We work in deeply regulated environments and environments that have very high bar on compliance. We want a fantastic nuclear platform that requires license in a private cloud. We want many customer security, DoD, and other community platforms that require licenses as well. But what’s clear through time is that license has a role and it’s going to have a role in certain types of regulatory and deeply compliant environments, environments that require the utmost trust and security has a role in the private cloud as well. We’ve sort of found our natural level in our licensed business. So, Thanos, it has a role. And it’s also a place where we can integrate to our hybrid cloud strategy. And a hybrid cloud strategy also means SaaS and private cloud. So we’re in the licensed business. It’s got a role. But the role is clearer today than it was five years ago.
Thanos Moschopoulos: [Indiscernible] thanks.
Mark Barrenechea: Yes. Thank you, Thanos.
Operator: The next question is from Raimo Lenschow with Barclays. Please go ahead.
Unidentified Analyst: Great, thank you. This is Jeremy on Raimo. So just on Micro Focus, maybe focusing on the product side, can you speak a bit to which areas of the business are seeing most interest at the moment, whether it be idle, Vertica, or maybe some of the security products? Thank you.
Mark Barrenechea: Yes, we happy too. Thank you, Jeremy. So, look, it’s been a great year one, and we’re on to year two. Today marks the first year anniversary. And if you’ll just allow me, we were shaped a shrinking business and formed it into an innovative, growing one. And it was a first, it was a fantastic first year. I want to thank everyone for their support. In terms of innovation and growth, let me provide a few shout outs. ITOM, our IT operations management, it’s all about the next generation of products around observability and extending service management outside of the IT environment to corporate-wide service management. That’s our priority. In terms of security, it’s about bringing it into SaaS, identity management, and to edge computing.
