“So, I think, if you are looking at that one, Wamsi, low single-digit increases for transaction processing is what we think is appropriate for the short to medium-term model looking forward.”

In context

“e're tracking very differently here. If you could share some thoughts around the trajectory of that in 2023 and beyond, that would be very helpful. Thank you. Arvind Krishna: Yeah. Thanks Wamsi, for the question. So, I'll address your transaction processing question first and then all of software right after that. So some of you have heard me talk about that transaction processing would be a mid-single-digit decliner in the past. And that's effectively, Wamsi, is what you asked, what's going to be different. As we look at our business there and we look both at the underlying MIPS growth, as well as the criticality of that software, as well as our ability to have some very modest pricing uplift, we would now look at that business as being a slight increaser as opposed to a modest decliner. So, I think, if you are looking at that one, Wamsi, low single-digit increases for transaction processing is what we think is appropriate for the short to medium-term model looking forward. Now, that does help in overall software. So first, let's look at software and decompose it. Software, as Jim mentioned in his prepared remarks, is almost 80% recurring revenue. We see that recurring revenue increasing consistent with our model of the mid-single digits, based on both the consumption, the usage, as well as what we have seen through '22 in people renewing that base of software business. Then, I will acknowledge to you that '22 was a great ELA year, '23 will be not as good as '22. But with the transactional piece of the business being less than 20%, that has a much smaller impact on the overall growth rate. As you put all that together, we see the mid-single digits as being appropriate for the software business. Patricia Murphy: Excellent. Thank you, Wamsi. Let’s go to the ne”