Walter Pritchard: Great. Thank you, Jonathan. Next, we’re going to go to Gabriela Borges from Goldman Sachs. And after that, Roger Boyd from UBS. Go ahead, Gabriela, with your question.
Gabriela Borges: Good afternoon. Thank you. My question is for BJ on the go-to-market, and I’m looking to understand to what extent NGS cross sell is or isn’t still tied to the file of refresh cycle? And as you think about the conversations you’re having with customer and platformization, I’m curious to what extent Microsoft is coming up in those conversations as a potential security platform, and how you help customers think through the advantages of standardizing on Palo Alto Networks instead of potentially Microsoft at some point in the future with security?
BJ Jenkins: Good question. Look, I think all of this starts with what Lee ended with is, we get to sell I think the best products in the industry, and we deliver better customer outcomes. We have three primary consolidation motions. One has been around, network security services on the firewall, but also in the SASE. And actually, we have within that now, we’ve landed customers with SASE, and are going back, and getting the network firewall business. So our core reps, tend to focus on that. They are – the account owner – and represent the whole portfolio. The second motion is, we talked about, code-to-cloud, and we usually land with workload protect or posture management, and then branch out into other modules off of that to either shift left or get a complete platform for the customer on cloud security.
With Cortex, we have three outstanding solutions that we land with. We either win with XDR, for customer focused on automation. XSOAR is a great starting place for us, attack surface management with Expanse. And, many of our first wins with XSIAM have been leveraging that installed base, to deliver a full SOC transformation. Again, on the surprising side, though, many of our XSIAM wins, we also didn’t have an installed base in Cortex and the customer jumped completely in. We have specialists in those areas in both code-to-cloud and in Cortex. And so, the core team works with those specialists, to run those consolidation plays also.
Walter Pritchard: Great. Thanks. Next question is going to come from Roger Boyd at UBS, followed by Patrick Colville from Scotiabank. Roger, go ahead with your question.
Roger Boyd: Great. Thanks for the question. And a happy Friday. Nikesh, you mentioned you’re now extending the Cortex to the core sales force. I’m wondering how you think about the repeatability of the success you’ve seen with SASE? I think you mentioned last quarter, 80% pipeline contribution from the core reps within a year of selling that product. But if I think about SASE versus Cortex, and SASE may be benefiting by being a little closer to the core network operation function that’s buying firewalls, how do you think about that as a challenge with the core upselling Cortex? Any thoughts there would be great? Thanks.
Nikesh Arora: Look, the whole idea originally was to have sales specialists because we were in the early stages of our products. We’re trying to build them out. We had lots of changes. We want to make sure they were trained and available as extra resources. Now think about it, we did a $44 million XSIAM deal. Everybody was involved. The core rep wasn’t going to let that deal go. That’s a lot of money of commission for the core rep if he or she can understand XSIAM. So I’ll tell you, BJ and I are going to have this wonderful sales conference starting Sunday. I promise you, every one of those guys will be lined up for the XSIAM session, because they want to learn more about it because, see, this deal size, deal size is equal to dollars for the company equal dollars for the salesperson.
And they’re all very smart people. So, they’re going to go gravitate towards where the real business is. So, I think when you can get salespeople to lean in to learn something, it creates a great outcome. And also, guess what, I mean it’s not like people suddenly woke up yesterday and became Cortex specialist. They used to sell cybersecurity before. They just did a good job of embracing and getting trained. So our products are at a point where we believe they are mature. We understand the differentiation of the market. There is reputation out there in the market. We have people in the back who can stand up POCs. I think we can do this. I think we showed that with SASE we can do this, and we can do this with Cortex. The cloud thing is slightly different.
Cloud is still early in the customer and from an adoption perspective. It’s a consumptive model. It’s an ACV ARR model. So that it lends itself to a slightly different sales motion and there, we’re not going to be in a hurry to merge that. But I think from a Cortex perspective, it’s not just merging the team. It’s opening up the floodgates for 3,000 people to sell it. That’s the way we think about it.
Walter Pritchard: Great. Thank you, Roger. Next question from Patrick Colville at Scotiabank followed by Michael Turits at KeyBanc. Go ahead, Patrick. Patrick, are you on? All right. We’re going to go to Michael Turits at KeyBanc and will be followed by Tal Liani at Bank of America. Go ahead, Michael.
Michael Turits: Hi, guys. Good evening. And just a sort of question for Dipak. So you have the 10% bogey for out there for hardware in the out year. How do we think about product, which is a broader category at this point, both in terms of how that ramps over the years? And what other products or categories might fall into that? SD-WAN has been in there, portions of the M-Series. So how should we think about that line in a dynamic way?
