Everpure, Inc. (P) Earnings Call Transcript & Summary

Well, folks, thank you very much. This is Simon Leopold, Raymond James data infrastructure analyst, and I'm hosting our next session with Pure Storage. And we have with us today, the CFO, Kevan Krysler; and Rob Lee, who is the Chief Architect. So we've got a fireside chat here, and I've got a few questions prepared, but if folks would like to submit questions, there's a feature on the upper left. [Operator Instructions]

But why don't we dive right into this fireside. And look, Kevan, I think our audience knows what a CFO does. Rob, what's a Chief Architect?

Yes. Absolutely. I'll kick this off. Yes, so from my point of view, I serve in very much like a CTO-type role. So I'm responsible for the technology in our products, how our products are built and delivered. And really, the -- overall, the technology set that we use, how we use those to differentiate as well as looking at longer-term technology strategy. And so looking at what our customers need, identifying secular trends in the industry and really opportunities for Pure to capitalize on them. And so part of my role is really identifying and driving this tech differentiation. Another part of my role is helping to articulate that to customers, to industry analysts and to the investor community. So definitely, thank you for the time today, Simon.

Great. So keeping in mind, our audience can include folks who are very familiar with you, but for some, it may be their introduction to Pure Storage today. So how do you like to introduce the company to a new prospective investor?

Yes. Absolutely. Maybe I'll take that one. So quite simply, Pure provides leading storage and data management solutions, which is to say we help customers modernize how they manage and store their data. So we're probably best known for pioneering the introduction of flash into enterprise storage. But fundamentally, what we really saw was an opportunity to disrupt and modernize the way that companies were storing their data. And so mostly, this was -- part of this was bringing new technology like flash into the fold. So making use of flash to drive benefits such as much higher performance, 10x faster performance, 10x less power usage, cooling, space savings. So definitely, part of it was integrating new technology, but also a big part of it, which sometimes goes underappreciated, is a whole new approach to software. And it's really the software in our systems that makes it all possible, makes it possible to drive much lower operational overhead and TCO to drive a tremendous amount of consolidation, helping customers take massive, massive footprints of legacy spinning disks and replace them with a much, much smaller footprint of higher-performance flash. And it's also our software that makes it possible to deploy our products to manage them much more hands-off, much more flexibly and sustainably over time. And so -- and the other point that's worth probably highlighting is because it's mostly software-driven, we're able to now deliver the benefits of our IP to customers in a wide variety of environments. And so whether that's on different types of solid-state flash media, whether it's on their premises, whether it's in a hybrid cloud environment or whether it's in the public cloud or across clouds, we're able to target our software to each of these environments and really drive modernization for workloads in each of those areas.

Great. So I sort of structured my questions to begin with your view on industry market, and then I want to take the audience down into some products and specific to your business. But we seem to be in an interesting period kind of coming out of the pandemic. And so maybe you could help us and understand where is your end market in terms of the recovery, the buying patterns? Are we post-pandemic pause? Is IT spending recovered? Or is that still on its way?

Yes. So Simon, it's a great question. And maybe what we'll do is go back to kind of going into the COVID environment, and it's largely playing out as we are thinking. And Charlie, our CEO, has laid that out quarter-by-quarter as we've been navigating these COVID headwinds. But first, when COVID hit, there was an acceleration that we saw in our business as customers were shifting really from work at -- working from work and then do -- working remotely. Moving to an online business, there was a lot of technical debt that needed to be addressed. We were helping address that. And then we kind of moved into a sharp pullback as companies were reassessing their business plans and really their business plans specific to digital transformation and modernizing their IT infrastructure. And then from there, we've seen a gradual stabilization, and it's a little bit varying in terms of where we're seeing that stabilization. But that's been really validated as we've exited Q4 and then really formed our outlook for both Q1 and for the year. What we're seeing at this point is continued strength really with our enterprise business. Now we made an investment probably about 2 years ago to really focus on our enterprise business. Principally before that, our commercial and mid-market was our bread and butter. And so we really look to expand to the enterprise space, and that helped us tremendously as we navigated through COVID. We saw some really excellent traction across the board and really in Q3 and Q4 that was taking shape on the enterprise side. So I like what I'm seeing in terms of enterprise strength across the board, and that's both international as well as the U.S. We continue to see the headwinds of the commercial and mid-market space. And we believe that that's really driven by COVID. We fully expect that to recover as the COVID effects diminish. And so we're looking forward to that. Currently, our view is that we'll start to see diminishing effects of COVID in our fiscal Q2. And in the meantime, what we're looking for as well is the continued expansion of our portfolio, really with FlashBlade and FlashArray//C with the continued momentum of Subscription Services. But as you've talked about, we can go into the products in more detail. But hopefully, that gives you some color in terms of what we're seeing right now.

Yes. No, that is very helpful. And I think part of the point you're making here is you are already focusing on moving, I'll call it, upmarket, but to larger organizations, enterprises prior to the pandemic. Do you have any way that you can maybe help separate the pandemic effect from the strategic change? So you intentionally wanted to grow enterprise mix. Where do we stand today in terms of the split of your customer base?

Well, we've been talking about the fact with the enterprise strength that enterprise bookings or sales now represent over 50% of our total sales, which has grown for us as we've navigated through COVID. If we were to pull the effects of COVID out, and I was doing a hindsight 2020, I would have fully expected that we would have continued traction in enterprise but then less impacted by commercial. We, going into fiscal '21 prior to COVID, were fully expecting double-digit growth rates, really leveraging our portfolio and our customer base and then, obviously, seeing where that's falling up for the year. And we fully expect to get back to it. I think, frankly, the ability for us to double down, if you will, with our enterprise customers and focus on that customer base will help us in the longer term as well to not only leverage and expand our footprint within our enterprise customers, especially our largest enterprise customers, but as well get back and get to reacceleration we're looking for in the commercial and mid-market space.

Now the other issue that occurred for you and your peers is that during the pandemic, new product evaluations were often deferred, that essentially organizations would buy what they had purchased previously because they couldn't get into labs or didn't have meetings. So this, I imagine, had some detrimental effect on your pipeline. Where do you stand today in terms of, I'll say, refilling the pipeline or having trials, catching up to evaluation activity that didn't occur during the worst of the pandemic?

Yes. Great question, Simon, and I'll take that. I want to hit that tactically in terms of pipeline. But Rob, maybe you can talk about, from a technical standpoint, why we're differentiated in terms of being able to demonstrate our product through simplicity. And then I'll...

Yes. No, absolutely...

Take the question...

Yes. No, absolutely, I was just going to take that qualitatively first maybe. So yes, so Simon, definitely, puts and takes. But overall, we see this as an area that we're generally advantaged in, right, which is to say we're easiest to get started with, super easy to deploy and quickly get started. And this kind of goes back to the software-driven ethos that I talked about at the start. A lot of what we've really invested in the core products as well as built into our Evergreen subscription offering is this idea that our arrays, once deployed, are largely auto-tuning, cloud-monitored, hands-off management and frankly, always improving. For a customer that's already deployed, this provides a number of benefits, right? They don't have to do a lot of the complex planning and forecasting that they might otherwise have to do with competitive products. It also means they never have to rebuy an array, right? Once in place, our arrays with the Evergreen subscription really allow customers to continually evolve to suit their needs. One of the key ways that we're able to deliver on these values is really software that allows our arrays to really plug-in and get started and evolve very, very quickly in terms of capacity, in terms of performance as customer needs dictate. And so that's a great day 2 experience for customers that already deployed, but it's also a great day 0 experience, right? What that means is that for a POC, for a customer that's just getting started, we can ship here, it can show up in the data center. And it's literally a matter of 15 minutes or so of unboxing the equipment, racking and stacking it, putting some power cables in, some network cables in. And the rest of the installation process and really process to get up and running can be done remotely. And so we saw definitely benefits of this ease of use in terms of early-stage kind of trials and customer prospects during the pandemic. And it's something that as our sales teams and our go-to-market teams shifted overnight into a remote selling and kind of a remote work environment, it definitely worked to our benefit. And so -- and there's a number of customer engagements I can think of where we -- during the height of the pandemic, for example, we were brought into work on a POC, and we were up and running in minutes and hours versus competitors that were essentially asked to pick up their gear after a couple of weeks of not being able to get up -- get installed and up and running. So this is generally a source of strength for us.

And then, Simon, just to follow on to that, right? So even though we've got a great setup in architecture that really enables easier assessments, if you will, for technology, there's no question that during COVID, we've been under pressure specific to acquiring new customers when compared to the pre-COVID environment. Now -- and simply, customers, as they were navigating through COVID, I think the advantage does go to the incumbent overall. So there's more heavy lifting that's required to really have these customers make decisions to move their technology platforms from one storage vendor to another. And frankly, with what we saw in terms of acquiring net new logos during the COVID environment in and itself was actually -- I thought was pretty incredible in terms of what we were able to do in acquiring new customers with this headwind of COVID against us. And in part, that was driven by our expanding portfolio of products. We had some net new logos. We really saw some great growth with our FlashBlade offering, FlashArray//C, Pure as-a-Service, all helped contribute. And what I really like to see was in Q4, we saw some renewed strength in our net new logo acquisition. Now it wasn't to the same level as we have historically seen, but the strength sequentially was excellent, and we are almost to where we were year-over-year pre-COVID. So I'm looking forward to seeing that reaccelerate with our commercial as well as mid-market acceleration as we move forward in FY '22, really sometime mid- to late Q2 in terms of how we're thinking about that.

So I want to explore another dimension, and that's really the supply chain. And I guess the context of this question is we hear a lot about difficulty, particularly availability of key semiconductors, dynamics of the memory components, so you buy raw memory and even things like shipping logistics. So could you give us your take on what's going on in terms of the supply chain?

Yes. And I'll flip this one. I'll hit it tactically and then have Rob talk about our architecture really because we've certainly been monitoring the shortages. To cut it really short, we're not seeing any meaningful impact for our customers. And Simon, you might recall that there were a fair amount of supply chain issues early in this COVID environment. And based on the architecture of our products and our leverage of raw NAND and the use of our software capabilities, we really weren't impacted by the supply chain shortages that were seen by others in the market. And that as well complemented by the fact of our Evergreen model, and we had, frankly, appliances and materials around the world that we typically support for Evergreen that was available in the event there were shortages. But we have an incredible supply chain team. We're diversified in terms of multisite. We're multi-continent, both in terms of operations and manufacturing. And again, we're monitoring the ship -- the chip shortage, but really haven't seen any meaningful impact to us. And the other important thing is our leverage of raw NAND and the fact that we leverage and use less NAND than our competitors. And maybe, Rob, you can spend a little bit of time highlighting that as a differentiator.

Yes, absolutely. So Simon, as you know, we use raw NAND in our products rather than building and incorporating finished SSD components. And that has a number of impacts. So one is, definitely, we can be much more efficient with our use of raw NAND, where removing the additional layers of componentry that would be normally found within the SSD, but rather addressing the needs through our software and our integrated hardware allows us to use, depending on the configuration, anywhere from 15% to upwards of 25%, 30% less raw chips than the competitive set could. And so that's definitely an advantage. The second advantage is by driving our software and tightly integrating that to our hardware platforms, we're able to drive much longer lifetimes out of the gear, right? And so we have much better telemetry understanding of the raw NAND, how it behaves and really can make those assets perform at a high level for a much longer period of time. And the third advantage, maybe coming back to your question, is this also simplifies our supply chain greatly, as you can imagine, right? So rather than transacting through an additional layer of commodity components, this allows us to work directly with multiple memory manufacturers, work with them much earlier in the development pipeline. So that we have the great visibility into not just today's memory technologies, but kind of the next generation and even a bit into the generation after that. That visibility helps us in terms of tailoring our software in our next-generation of products to drive the best customer outcomes. But it also helps us in terms of our global supply chain, right, and thinking about everything from pricing to stocking to the whole nine yards.

And have you taken any actions to maybe build some buffer inventory in the event that there might be disruptions or shortages or even in the case where your competitors try buying up and building their own inventory, which puts a drain on the market?

We don't go into the specifics, Simon, in terms of what we're doing. And Charlie put it well, right, when he refers to our awesome supply chain team. He says, they're like ducks on water, looking smooth on top, but they're paddling and working really hard underneath the water. And look, they're doing some things that -- to make sure that we've appropriately mitigated the risk, and we're not going to cause disruption for our customers. So we feel comfortable about that. But don't go into any detail specific to any lead times that -- or additional purchases we may be making for inventory.

Right. We wouldn't tell your competitors anyway, but that's okay. But I guess one of the things we want to follow this up with, though, is when you see pricing shifts in the marketplace, what's your ability to pass on those costs? Or if prices go down, what's your ability to see expanding margins? What's sort of the connection between the raw material prices and your ability to pass those costs on?

Well, the first thing is, we've -- our business model is built upon orderly declines in flash pricing because our vision is that eventually, we'll take over and flash will take over the magnetic market. And so in order to do that, we would be expecting orderly declines over time. So that's expected, built into our model for expansion. Where it gets tough for us is when the orderly declines become nonorderly or disruptive, and we saw that back in a couple of years ago, where we saw unprecedented declines in NAND, and that just caused a disruption in terms of customer buying patterns as well as pressure on ASPs. And -- but that was only seen once in terms of Pure's history. So again, as long as that's orderly, we're fine. And that also holds true if prices increase slightly and are orderly, specific to NAND. That's very manageable in terms of how we approach that. Now if NAND prices have unprecedented increases, we would need to deal with that, and that would be something a little bit different. But as long as the markets are behaving as expected, and we're seeing either increases or decreases that we view are orderly in accordance with market behavior, it's good for us, frankly.

So I want to get into the product now and the technology. And I guess as kind of the backdrop, when Pure first became a public company, it was a relatively straightforward story. It was the company that introduced all-flash arrays and that was displacing legacy spinning disk and tape, I guess. And now you've got multiple products. And keeping in mind the financial analyst audience, you've got FlashArray//X, FlashArray//C, FlashBlade. So you've matured, you've got a portfolio developing. Could you help us get a little bit of better understanding of sort of what are these products? What are the different market segments or applications?

Yes. Absolutely. So happy to walk through each of the products. But first, I'll say that the common thread between each of the products that we have is the -- really the common software IP that allows us to get both -- the most out of flash as well as give customers a simple and seamless evolution path once they're on our products, right? And so we'll touch on elements of that as we go through. So maybe if we look at the portfolio, we've kind of got a couple of core products. FlashArray//X, certainly the first product set, and that's really -- think of this as targeted at the set of high-performance demanding block storage applications. So these are typically back-office type applications, so think databases, think virtualization, VMware-type systems, Hyper-V. But a lot of the back-office type environments, they are the highest performance demanding and really in the industry, among the first to transition from magnetic disk over to flash. Secondly, FlashBlade. This is a product set that's really focused at unstructured data workloads. So what does that mean? So some of this is a lot of the most modern applications. So the applications that are generating the most amount of data, IoT, analytics, AI, machine learning, but also a lot of technical computing. So applications in the field of genomics, scientific computing, fluid dynamics as well as software and hardware development. So chip design, electronic design automation is a big use case for us. Add to that, we also have a number of really more bread and butter, so to speak, use cases that are very large businesses for FlashBlade, specifically in the backup and restore space. So the whole area around business continuity, data protection and ransomware protection. And so what all of these workloads and areas really share is common performance demand that FlashBlade is really uniquely able to address. Thirdly, we have FlashArray//C, probably the newest core product in the fleet. And the way to think about FlashArray//C is this is really a truly innovative product set that allows us to incorporate QLC technology, right? So this is the latest generation of solid-state NAND flash that allows us to deliver at a much lower cost and much higher capacities the benefits of flash storage to really areas of the storage market that were previously kind of unaddressed by flash because of cost reasons. So this is -- we see a lot of test and development environments, a lot of departmental file storage, really kind of a Tier 2, if you will, of folks kind of data storage footprints. And then probably lastly, I'll mention Portworx, right? So this is obviously a significant acquisition that we did in Q3 of last year. And Portworx is really oriented at meeting the needs of cloud-native workloads, right? So these are a lot of the net new development, net new applications that customers are building. Most of these applications are heavily favoring or really built on cloud-native technology stacks. The challenge that customers face with these stacks like containers is that the tool set, the environment that they're having to build on are really missing a lot of the infrastructure components, such as storage and data management, that the more traditional application environments have really evolved and matured over the years. And so what Portworx really fills -- the gap that it fills for customers is it provides that set of tools, not just to help them get started in their software development, but really grow through the entire maturation phase, if you will, from -- everything from a few developers in a corner and a credit card getting started all the way through test and development to truly scaled enterprise production. So as you can tell, very excited about the whole portfolio set and Portworx in particular, but still early days, but very strong adoption and growth there. And a little bit long-winded, but I also want to leave off and make sure that we hit on Evergreen, right? And this is -- there's a lot of focus on our discrete products in the portfolio, which we've kind of given an overview of. But oftentimes, Evergreen, the Evergreen subscription that ties a lot of these together, is often missed or glossed over. And the core idea behind Evergreen is really that -- the idea that once a customer is on our products, they don't have to worry about migrations or downtime or really planning for future growth or evolution. Evergreen and the subscription is really providing customers access to ongoing software and hardware innovation through continuous updates, but most importantly, it provides that through a very nondisruptive means. The idea that we can go in and upgrade an entire customer's environment, software and hardware, without creating any kind of downtime, without creating any kind of disruption, means that customers can, a, always stay on the latest and greatest, can get the benefit of the most modern technology. But it also forms a very, very strong footing on which for us to deliver a true as-a-service experience, right? As you think forward to, and I'm sure what we'll get into it, delivering our products as a service, it's the core elements of Evergreen, the ability to deliver these upgrades and updates to the environment nondisruptively that allows us to deliver on that service experience.

So one of the aspects that you mentioned in terms of talking about the products and use cases was the issue of performance and reliability and flexibility. And I guess what this sort of makes me want to ask about is this concept that I think many in the investment community think everything is going to a public cloud. So I guess this is a point of some debate, but the bears will tell you, why would you ever invest in storage if everything is going to be done on the public cloud? So I think performance is maybe the key word here. Maybe you could help us understand what's sort of the breakpoint of why isn't it going to a public cloud?

Well, I can hit that, Rob, and then feel free to jump in, in terms of my views on it. Look, in my mind, it's a hybrid world and it will stay a hybrid world for the foreseeable future, and there's a lot of different reasons for that. And there's a huge role for the hyperscalers, but there's also a huge role for companies to have their data and protect their data on-site and control their data and have flexibility with what they're doing with their data. And that's why I just think this will be a hybrid world. And I think the first question really comes down to performance, flexibility, choice, dependability, and that's what a customer is looking for. Costs will play into that as well. And I do think a hybrid model -- the economics of a hybrid model over time will play out to the benefit of the customer more so than fully going into a cloud environment. But when I look at it from a customer lens and what they're looking to do, they've got specific outcomes they're looking to achieve. They've also got data that's highly protected. Data is probably the second most important asset to people for a company. And so they're going to be very sensitive to some of their data, where it's located, how they can access it, how they can move it around. And so from my perspective, with an environment that allows a customer choice to have their data on-prem, be able to move it to the cloud when they want to move it to the cloud, to move it back, if they so desire, that's a choice, and that's going to be the future for the foreseeable outlook. And now the other question, too, is breaking this up between traditional workloads and modern workloads. In traditional workloads, I think it's -- data gravity is a real thing, especially for mission-critical applications. And so I think that will be something that companies will be thinking about as they're looking at where they want that data to be stored. Specific to modern applications, I think it's going to, again, come down to choice, flexibility and not having any specific lock-in. But Rob, anything else you'd want to add on that front?

Yes. No, I think I agree 100%. I think we definitely see it being a hybrid world for some time, and that's really -- I think what we see is customers really see the benefits -- some of the benefits of cloud-like management. But for a variety of reasons that Kevan laid out, they're going to have significant on-prem footprints for some time. And so that's where some of the elements that we've built into Pure as-a-Service are just so appealing, right? This idea that we can create a highly differentiated set of capabilities, leverage our core Evergreen architecture to give customers that flexibility to really consume in more like a cloud model, but on their data center floor, right? To be able to plan for today and not have to worry about how they're going to grow tomorrow. To subscribe to service-level objectives as opposed to thinking about specific hardware SKUs. To be able to pick up and redeploy capacity across different tiers or across different sites or prem to cloud and to really have that flexibility, both in the product as well as in the subscription. And so we think there's always going to be a traditional prem business for a variety of reasons. And so I think job #1 is -- and focus #1 is continuing to be the best solution for customers where they run their most critical workloads. Secondly, I'll point out that, as Kevan mentioned, we do think of customer workloads really in traditional and cloud-native in terms of a bit of a separation. And I think in the traditional workload set, we do see some customers that over time might lean a little bit more heavily into MSPs or co-los as they look to directly kind of manage fewer of their data center operations but still want some of the benefits of performance or tighter control. This has always been an important segment for us, the cloud business, as we frame it up as SaaS providers and MSP providers, and it's going to continue to be. And in fact, you saw this morning, we announced a strengthened partnership with Equinix to deliver customers in partnership, bare metal as-a-service, and this is all powered by Pure as-a-Service storage services. And that's really meeting precisely this need. And then lastly, I'll close by coming back to Portworx and some of our cloud software assets, right, and -- which is to say, we do have differentiated products to help customers who are going to be 100% in cloud, whether that's in the traditional workload set with Cloud Block Store on AWS and Azure or with Portworx on each of the clouds as well. And so -- and with Portworx, in particular, one of the things that's really exciting is we're starting to see a very healthy portion of that customer base made up of customers that are 100% born in cloud and really looking to Pure and Portworx to solve their enterprise data management and cross-cloud portability needs. So really covering the entire gamut, if you will.

Great. I want to follow up with maybe some discussion on the competitive landscape. In that, I guess, it's very hard for analysts as observers because there's so much apples and oranges of what each company incorporates in their numbers. But superficially, it looks like the all-flash businesses at your competitors are growing quickly. And the sector market share leader has a big product refresh that they've talked glowingly about, and I think everybody else is sort of the opposite. So we've got a lot of debate about that product cycle. So I know the answer is it's always competitive, but could you maybe help us unpack a little bit more about what's going on in the competitive environment?

Sure. Maybe I'll start and share my view and Kevan jump in as well. But yes, I mean, I agree, storage is and always has been a competitive market. But what I'll say is on the product innovation side, it's been surprisingly light on competitive dynamics frankly, right? We have had a number of questions about specific competitors, for example, the mid-range refresh at Dell. But the fact is we really don't see a lot of these products and competitive offerings in the field, right? And I think as it relates to the first part of your question around market share and all-flash growth and so on and so forth, it's important to realize really 2 things, right? One is, we view the market that we're playing for as the entire storage market, not just all-flash. And so that's really what we measure ourselves against. And when you look at the market share numbers for overall storage, if you go back 10, 12, 14 quarters, what have you, we've been a consistent share taker, right? And I think if you look over that same period of time, there's also been some consistent share donors as well. And we think that this really follows innovation and that we're one of the only ones in the pack that's meaningfully investing there. And I think some of the results that we're seeing are really the product of that and customers that are really starting to recognize and reward the fruits of that investment.

And I don't want to -- before we run out of time, I want to get into a little bit about kind of the consumption-based model, which you've talked about. What are the metrics that you've been highlighting as remaining performance obligations? Maybe you could set a little bit of context of what this value means, what's behind it and how you want analysts to think about it.

Yes. Thanks, Simon. Look, this is another metric that -- remaining performance obligations that really is reflected on our balance sheet and shows how much revenue we'll recognize in the future for contracts that are noncancelable that we've already executed. And what we want to see is we want to see that balance growing sequentially, really driven by our Subscription Services, and the 2 primary Subscription Services would be our Evergreen subscription as well as Pure as-a-Service. And there's really kind of 2 components in the remaining performance obligation. One is driven by deferred revenue and the other one would be what I refer to as unbilled dollar amounts. And the deferred revenue is stuff that we've actually invoiced for. So a customer would commit to a year's worth of Evergreen subscription services. We invoice them for that. That goes into deferred revenue. But we also might enter into a Pure as-a-Service agreement for 3 years with a customer and not invoice 2 of those noncancelable years. Well, those 2 years would also be in the remaining performance obligation, and we refer to that as unbilled. So hopefully, that gives you kind of a sense of why we talk about RPO given the momentum we're seeing with our Subscription Services, Simon.

And my recollection was last quarter, the growth was about 24% year-over-year.

Continue to see -- yes, continue to see really strong sequential growth, both in RPO as well as deferred revenue, which, again, is another data point in terms of the health and momentum we're seeing with Subscription Services.

Well, believe it or not, we've more or less run out of time. So great answers, lots of good detail. I'd like to close with the following question, though, is, what do you think is the least-appreciated aspect of the Pure Storage, just to bring that home for the folks in the audience?

Yes. Thanks, Simon. And I'll take that real quick. I mean, look, the opportunity in front of us is just massive and in terms of what we're looking to do as we see the market move completely to flash. We see that opportunity with FlashArray//C. What we're doing in the use cases customers are seeing with FlashBlade continues to resonate. Both those offerings are very much early innings for us. And the opportunity set, not only for those offerings, but really, when we think about the data management market as a whole and what we're pursuing is significant and then complementing that with what we're doing overall with our Subscription Services and the value customers are seeing through both the Evergreen offering as well as Pure as-a-Service.

Great. Well, we appreciate your time today. We appreciate you joining us in our institutional investor conference. So Kevan, Rob, thank you very much. Folks, thanks for joining. This is Simon Leopold from Raymond James signing off in our session with Pure Storage. Thanks.

Thank you, Simon.

Thanks.