With that all said, I think as we start to see growth, I wouldn’t be surprised to see some working capital needs as we get in front of some of the buys that we expect that we’re going to need to ensure that our vendors and our customers are taken care of in the second half of the year.
Rich Hume: Yeah. Matt, on the PC question, remember we had a very modest growth in Q1. As we think about quarters two, three and four, we see that growth expanding as we had said in our previous dialogue. And I kind of see it as in all boats rising right now. When I think about the different dimensions of commercial, SMB, public sector, retail, there is no one area that is sort of outpacing the other in a significant way, but rather sort of a rising tide across the portfolio. Now, obviously that might change moving forward, but that’s kind of what we’re seeing right now.
Matt Sheerin: Okay, very helpful. Thank you.
Marshall Witt: Thanks, Matt.
Operator: Our next question comes from the line of David Vogt with UBS. Please go ahead.
David Vogt: Great. Thanks, Rich. Thanks, Marshall, for taking my question. You spent a lot of time on PCs. Maybe can we pivot to sort of the more AI-centric product categories going forward as well, server, storage and networking. How are you seeing the demand environment today? Obviously a lot of companies have posted relatively soft results. And how do we think about that in the context of your second-half billings commentary regarding mid-single digits to double-digit growth? And then I just have a follow-up question. On the model, should we expect sort of the same dynamic from a margin spread perspective on these products if they are AI sort of centric or AI-enabled products versus where we are today from more of a traditional legacy datacenter footprint perspective? Thanks.
Rich Hume: Yeah, sure. So obviously early days in AI, but maybe I’ll double back on some comments on where we see things emerging. So first of all, on Microsoft Copilot, on our launch week, we had more than 2,000 partners engaged. And if I fast forward the current day, that has more — dramatically more than doubled. So that — I’ll call it the software category is off and running. We’ve had a great launch. There’s a lot of market excitement around AI software and Copilot in particular. The second, we talked about being sort of a full-service distributor for NVIDIA and we were fortunate to be named their distribution partner of the year in the Americas. So there is a components aspect that is beginning to emerge that is also quite interesting.
Third, from some of the more traditional OEMs that focus within the server category, we see the emergence of some larger deployments, larger than normal in all of the markets throughout the world. So this might be an end-user customer who has a oversized demand of servers with GPUs in them. So we see that beginning to emerge. And then of course, as we said earlier in our Hyve business, which serves the hyperscalers, there’s going to be a natural transition in that content, less traditional datacenter, more towards the AI sort of configured systems. So all of this is sort of building. At the same time, I think that we’re going to be very focused on making sure we provide clear definitions for how we think about AI and what counts when we articulate particular sales numbers, et cetera.
So that’s work to do in the coming quarter or two, which we’ll make sure we provide. Then the last part is more of a general statement in terms of what we’ve experienced in the past with new technologies. Typically new technologies come into the channel with a higher margin profile than our average. And that’s largely because the OEMs or the vendors want to help lead us to where they — what they think is strategically important. So they typically enhance the margin profile. They also recognize that within there we’re going to have to be building skills and capabilities and services which have some incremental costs and expenses associated with them. So at this point, it’s early innings on AI. I can only talk about what we’ve seen in the past with new technologies, and that’s kind of the way we think about it.
David Vogt: Great, thanks. Very helpful.
Rich Hume: Thank you.
Operator: Our next question comes from the line of Vincent Colicchio with Barrington Research. Please go ahead.
Vincent Colicchio: Yeah, Rich, most of my questions have been answered. Curious about your expectation for acquisition revenue synergies for the year. Has there been a change there?
Rich Hume: Yeah, let me talk about the acquisition and I’ll let Marshall talk about the revenue synergies here in a moment. So from an acquisition perspective, we continue to work a wide and robust pipeline of areas that we are interested in. Ideally, we look for opportunities that will allow us to enhance or accelerate our strategic focus areas. We’ve talked in the past about the fact that within Europe and Asia-Pacific, Japan, our market position is a little bit lighter than it is within North America in particular. So those are attractive areas to us as well. We’re patient, we look for the right match and it could come in the form of what we — what the market sometimes calls tuck-in acquisitions. But we do see opportunities to improve our portfolio going forward. So, Marshall, over to you.
