Marshall Witt: Hi, Ruplu. So I’ll address the second question first and then Rich — let Rich talk about the billings and the AS features. So you’re right, that’s pretty close. We were still within our range of outcomes for quarter one, but towards the lower end of that. So with that outcome, if you think about what we guided, we were roughly about 2% below the mid-point of expectations and playing that through to quarter one, we’re about 2% below what we originally thought. So you play that out for the first half? Yeah, it’s about 1% to 2% overall decline in revenue, but still pretty close to where we had expected. So I wouldn’t call it any meaningful shift. Now it’s a matter of just how the recovery plays out. Quite possible we could end up catching up to that. But certainly the expectation for the second half growth attributes for ES and AS, we still feel quite confident about.
Rich Hume: So, Ruplu, within the category, the other segments would be mobile, components and peripherals, they were down. And I would tell you that relative to our expectation, some of the softness versus the midpoint manifested itself in mobile and components.
Ruplu Bhattacharya: Okay, thanks for that, Rich. You also talked about starting to see AI-related demand. I guess my question to you would be, do you think spending on AI-related items like AI servers could have a cannibalizing impact on some of the non-AI related products? Have you — I mean, what’s your thought on that? I mean, do you think the AI is a separate category and a separate spend, or do you think the overall spend remains the same and one cannibalizes the other? Thank you.
Rich Hume: So, this is personal opinion and I need to characterize it as that AI will not be just the total increment up on the IT TAM. I believe that there are trade-offs that are made when new technologies emerge, budgets don’t immediately increment to handle this new category. I think that there can be some trade-off, Ruplu, between AI infrastructure and other components of infrastructure. Cannibalization is a very strong word, so I wouldn’t state that, but I’d leave it at logical trade-offs. Everybody needs to run their enterprises and they need to make sure that they have an up-to-date and solid infrastructure to support that business. And then in addition to that, taking a look at new value props associated within their enterprises for AI productivity. And that’s the way I would think about it.
Ruplu Bhattacharya: Okay, thanks for all the details. Appreciate it.
Operator: Our next question comes from the line of Ananda Baruah with Loop Capital. Please go ahead.
Ananda Baruah: Hey, yeah, thanks guys for taking the questions. I guess, Rich, what’s your view or what do you see as the potential for the AI participation to foundationally impact the company’s revenue growth rate in coming years? And can you even, I guess as a part of that context, speak to the potential for ASP mix-up from Hyve, since I think in a lot of cases those servers can be meaningfully more expensive than traditional cloud servers. But also, hearing your enthusiasm around the NVIDIA relationship, the GPU TAM for NVIDIA is pretty tremendous. Also, I would have thought maybe just the gen AI-enabled PC ASP uplift did impact you guys, but it sounds like you’re working a handful of angles here sort of as well. So just would love your thoughts there. Thanks.
Rich Hume: Yeah. So again, it’s a personal judgment because it is early innings, but I think you’re right, Ananda, when we think about this AI category, and we start to superimpose it on the traditional segments of IT, it’s — I think it’s fair to conclude, at least at this point, that the configurations are going to be richer. By definition, the cost of some of the GPUs, which are in market are fairly material. And so therefore — and by the way, when we think about a configuration to support an AI server to use that as an example, it generally is richer in market today. So look, I agree with you. I think the AI PC, the infrastructure categories of AI will all provide an increment within the ASP for some period of time. And the same would be true for software.
If you take a look at traditional software that was in market, now the AI-enabled versions, the ASP, if we use that word for software, is higher. So I think that as that whole AI category provides some growth in market, it is fair to say that relative to the legacy things that they’ve been characterized or they’ll clearly help with higher-level ASPs.
Ananda Baruah: That’s great context. I’ll leave it there. Appreciate it guys.
Rich Hume: Thank you.
Operator: Our next question comes from the line of Keith Housum with Northcoast Research. Please go ahead.
Keith Housum: Good morning guys, and thanks for the opportunity here. And I appreciate the details as well, with Endpoint Devices and Advanced Solutions. As we look at the gross billing split, roughly 40-60 this quarter, can you give us a little bit of historic perspective, how does that usually range, I guess, as we kind of think about the business? Is it — historically, has been more of a 50-50 mix? Or is there more trending to where we’re at now? And how can we expect it to, I guess, trend over the next year or two?
