And there’s a lot of old stuff sitting from Symantec 1, 2 and some of the McAfee stuff. And when you deploy Zscaler, you can’t be really sitting with the old school DLP technology. Data protection is a big opportunity for us. If there’s one other product I would highlight, it is ZDX. Digital experience is one of the favorite services of CIOs and Head of Networking because when someone is coming from some home, some coffee shop, some hotel, when things are slow, customers struggle to figure out. ZDX has become very sophisticated to help them pinpoint issues and take care of them. User experience is becoming more and more important. And it’s this highly, highly differentiated service that we offer. Did I answer your question?
Peter Levine: Perfect. Yes. Thank you very much.
Jay Chaudhry: Thank you.
Operator: Our next question comes from the line of John DiFucci with Guggenheim.
John DiFucci: You said that EMEA grew strongly year-over-year. But was it the kind of growth you thought it would be? Because the reason I ask is that our checks in the regions were as — they were pretty mixed. And your revenue growth decelerated in the region. And given the recurring model of revenue is usually a lagging indicator, I get that. But I guess you answered that question. And how do you expect the region to progress going forward? Is there any reason that region might be more competitive?
Jay Chaudhry: I’ll start, and Remo can add things too. This quarter, EMEA had less dependency on large deals, okay? And as you know, large deals are getting more scrutiny. And U.S. was relatively speaking weaker because they had higher dependency on large deals. Remo, do you want to add any more?
Remo Canessa: Yes. I mean you’re right, John. I mean, revenue is a lagging indicator. And for our new and upsell business, it was one of our strongest, if not our strongest geo. So, EMEA did do well.
Jay Chaudhry: And if there’s another color I could give you on the market vertical kind of stuff. There are certain verticals that are better than others. As you would expect, the tech vertical was weak in today’s market. And some of the retail and on was a little bit slow.
John DiFucci: But that would be more for the U.S., right, Jay, the tech vertical?
Jay Chaudhry: For the U.S., that’s correct. That’s correct.
Operator: Our next question comes from the line of Shaul Eyal with Cowen.
Shaul Eyal: Jay or Remo, one of the topics in recent quarters is cloud-related costs, or in other words, some enterprise customers are indicating that some of the cost benefits they have subscribed to under the big cloud promise in recent years, at times, that is not living up to their expectations. So interested to learn whether your customers have been bringing up that point in recent discussions.
Jay Chaudhry: Kind of hard time hearing you, Shaul. So you might — I think we caught something about maybe hyperscaler and — perhaps if you could repeat that?
Shaul Eyal: Yes. So I was asking whether if some customers have been bringing up maybe some disappointment with the overall promise as it relates to cloud-related costs. Is that a topic that has been brought up in recent discussions with your customers?
Jay Chaudhry: Yes. So, let me share with you lots of conversation I have. Customers are embracing cloud, okay? There’s no — somebody is not saying, I want to come back or not embrace the cloud. That’s point number one. Point number two, the speed at which these guys are moving forward is slowing down. You can expect because some of these large software development projects are slowing down for cost reasons. Number three, that’s actually creating an interesting phenomenon, whereby customers aren’t able to use all the spend that’s committed. Okay? That’s actually giving us at a unit where we are actually partnering more closely with some of these hyperscalers where our deal can be part of that customer commit because we are — as an approved partner for some of the cloud spend.
