“That said, we had said late last year that we expect growth in Red Hat to be in the upper teens. We continue to make that expectation.”

In context

“, I'd like to mention a couple of items. First, supplemental information is provided at the end of the presentation. And then second, as always, I'd ask you to refrain from multipart questions. Operator, let's please open it up for questions. Operator: [Operator Instructions] Our first question will come from Erik Woodring with Morgan Stanley. Erik Woodring: Just one for me here. Obviously, we saw a bit of a deceleration in the Red Hat business. So would just love to hear what you're hearing from them and any impact that you could share with us on the deferred that's been a part of this business for a while? So that's it. Arvind Krishna: Thank you, Erik, for the question. Let me start off by just -- we feel very good about the Red Hat business, and we see very strong demand continuing. That said, we had said late last year that we expect growth in Red Hat to be in the upper teens. We continue to make that expectation. It's what we are going to continue with. Erik, I think I heard you start to say deferred revenue. That accounts for the bulk of what has been the difference in the growth rates and coming down from last year to this year, and I'll let Jim add a bit of color on to that. James Kavanaugh: Yes, Erik, thanks. Just building on what Arvind said, 17% growth overall, taking share both in our core RHEL but also in our hybrid cloud platform-centric foundation, Red Hat OpenShift. By the way, Red Hat OpenShift, 4.5x now the revenue pre-acquisition. We had very strong bookings overall in Red Hat here in the quarter. Large deals were up 50%. Red Hat OpenShift bookings were up over 50%, which positions us very well with our backlog and a strong NRR. So we feel pretty good about our Red Hat portfolio ove”