Rob Lee: Yeah. No, Wamsi, I think. Sorry, Chris. A couple of things. Look, I think if we step back from the application sets we’re seeing AI technology being applied to today and we look at the long-term drivers. I think it’s going to have a positive effect on all forms of storage. And why — and what makes me believe that is look, the source data that enterprises are looking to feed into AI technology and get benefits from are coming from all over the place. They are coming from business systems that are coming from traditional databases, they’re coming from more modern databases they are coming from unstructured data, log files, images, and that really spans the gamut, block file and object. I also think that the enterprises, are kind of source data that they’re collecting through those means today and is going to increase in the future.
I think that’s the larger opportunity set. AI is clearly a fast-moving technology space that every enterprise is looking to adopt, and looking to take advantage of, and that’s just going to drive a greater demand to collect and store data across the enterprise. I think just to address the second part of your question on InfiniBand, look, we’ve really focused on addressing the AI space as one of several very important segments in the portfolio. One of the things that really sets us apart in the market and really with our customers is the benefits we can deliver by having a consistent, hardware, software and management experience across all of their workloads sets. And this is where we see the benefits of ethernet based technologies, we see the benefit of more ubiquitous technologies, that again as the current application sets that you see perhaps an AI training environments broaden, and those environments needs to connect to other parts of the customers datacenter, special-purpose, technologies, if you will, such as InfiniBand really hinder that really get in the way.
And so in InifiniBand is nothing new, we’d spent around for quite some time, but mostly found in more specialized environments. We see the bigger demand and value to the enterprise and being able to give them a complete solution set, not just for the AI training environments, but for all of the data environments that are going to be impacted by the uptake of AI technology.
Paul Ziots: Thank you, Chris. Next question, please.
Operator: Next, now to Sidney Ho at Deutsche Bank.
Sidney Ho: Great. Thanks for taking the question. My question is on the remaining purchase obligation. That is still showing really good growth in 26% growth year-over-year, but the unbilled portion really accelerated in the past few quarters. Can you talk about what’s driving that acceleration, does it have anything to do with the new products or maybe Evergreen just growing rapidly. Thanks.
Charlie Giancarlo: All right. I appreciate the question and it’s a real simple answer. You’re exactly right, it’s due to the Evergreen//One acceleration and just timing of billings is really what it comes down to.
Paul Ziots: Thank you, Sidney. Next question, please.
Operator: We go next now to Shannon Cross at Credit Suisse.
Shannon Cross: Thank you very much. You mentioned that E is exceeding your expectations. I’m wondering, if you can talk a bit more about how the customer conversations are going, how much you’re seeing this being sold into existing customers versus some of the new customers? Is it’s opening up a new opportunity for RF to bid on new RFPs, just any more color you can give there. Thank you.
Charlie Giancarlo: Yeah. Let me let me start. It — first of all it is are exceeding our expectations, both in terms of the revenue that we saw in our first full quarter of shipments, as well as in the pipeline growth, which continues at unprecedented rates very-very fast. The conversations are, first of all, they are happening all-around the world, they are happening across a very broad set of use cases. And in some cases at prices higher than what the customer would be paying for new disk environments, because of the lower total operating cost, that they are able to get, and the better performance that they’re able to get-out of the all-flash E environment. So, and I would say that it’s really. I have yet to hear of a use-case around for an existing disk based system that flash FlashBlade//E was not able to address.
Paul Ziots: Great. Thank you, Shannon. Next question, please.
Operator: We’ll go next to Jason Ader at William Blair.
Jason Ader: Yeah. Thank you. Hey, guys. Can you quantify the revenue growth headwind over the last 12 months from Evergreen//One? And also just start, any color on materiality to the total services revenue, I mean, can you give us a ballpark of how big it’s becoming?
Charlie Giancarlo: Yeah. It’s a great question and Evergreen//One performances is simply been terrific. In the first half and we’re expecting that momentum to continue. And you’re right, there is a short-term headwind on revenue, as a result of revenue being recognized over-time. And when we think about it from an annual lens, it’s probably about one to two points is how we’re thinking about it currently, and then we don’t — we’re not quantifying Evergreen//One specifically at this point in time, Jason.
Jason Ader: Okay. Thanks.
Paul Ziots: Thank you, Jason. Next question, please.
Operator: We’ll go next now to Mehdi Hosseini at Susquehanna.
Mehdi Hosseini: Yes. Thanks for taking my question. I wanted to better understand the dynamics of the folks that you’re talking to decision makers at the customer side and how is that changing. And I’m asking you, because I’m looking at your OpEx that is on-track to grow in the low-teen versus revenue growth target of mid to high-single digit.
Charlie Giancarlo: Yeah. Regarding the type of customer environment the new positioning. the new messaging, we’re talking about is definitely getting us into the C-Suite, increasingly, and it’s both, that message is made-up of several parts, one is an extremely consistent environment, that first of all can take care of all of their storage needs and the same with the same environment, therefore, lowering their total operating costs. The dramatically lower power space and cooling that both lowers costs but it improves their ESG their own ESG ratings, which is extremely important. And then also as I mentioned in my prepared remarks, the ability now to be able to rise above just individual arrays attached to individual use cases and enable customers to create an environment where they can have consistent storage pools across their entire enterprise, multiple data centers, multiple clouds.
