There is also another part of that public cloud business though that has been growing rapidly for us, which is a little bit different. Again, this is a small number for us but we think we are a leader in this public cloud marketplace. One of the examples I’ll give you there is – we had a Fortune 1000 company do a trial last November on our WAF. A year later now, they are doing over $100,000.00 annually with us and that is on a recurring monthly basis.
There definitely is kind of this try the product in the public cloud and then expand as they get more comfortable deploying applications there that we think is going to drive virtual growth for us and public cloud growth for us going forward that we’re excited about.
Then the third part is just our traditional what I would call virtual appliance on premise business. That business is growing much faster than our overall growth rate. I think the excitement for us there is where more of that happened in our legacy business – the content security business. We have seen a strong acceleration in virtual growth in our network and application security business, which we again think bold well for us. There is a number of ways virtual comes into play – self-service, [inaudible] virtual, and then public cloud. All three of those areas though we feel good about the activity and the growth.
David Syarto, Vice President Operations, Ruby Tuesday
Aaron just to follow-up on the deferred question. The physical appliances — majority of those sales are going into the long-term deferred. On the virtual appliance side, typically you are going to see shorter term durations than that three-year average on your appliance. You realize as you displace some more of the physical appliance sell for the virtual appliance sell, you will see more of that show up in your short-term deferred relative to your long-term deferred. It is the same trend. It is just manifested and how the balance sheets are playing out.
Aaron Schwartz, McCrorey
Right. I guess I’m just trying to play that out if you continue to see that shift would that be a little bit of a headwind to your billings growth unit if it’s better economics to your longer term?
David Syarto, Vice President Operations, Ruby Tuesday
Yes. We have said consistently that while we believe that the shift towards virtual appliance provides some headwind in any one period, it is very much in the long term benefit for the company. Number one, it is more margin rich than a physical appliance given the lack of kind of a hardware component. Also, it has got a much higher component of it is recurring and there is a higher customer let time value associated with it.
Yes, that continues to be the case every quarter that we continue to sell more virtual appliance in lieu of physical appliance. You will see some of the near term headwind, but it has a long term value to the business so we embrace it.
Operator
Your final question is from the line of Michael Steger with ROTH Capital. Your line is open.
Michael Steger, ROTH Capital Partners LLC
Hey, how are you doing? Happy new year. I am glad I got squeezed in. I think all the good questions have been answered. I just have maybe a follow-up. In the bundling, so to speak, it sounds like you are alluding to some more bundling coming forward. Should we expect it in the NG Firewall and the WAF part to be combined or not?
