“So Q1 was at the bottom end of that range. We are seeing more demand coming up as we go through the year.”

In context

“ferred revenue accounting contribution can be fundamentally like 17%, 18%, so an acceleration from 7% or 8% to 17% or 18%. And then secondly, can you comment just on the impact of software pricing? Are you only seeing that in Transaction Processing? Or are you seeing in other parts of the software business? And how should we be thinking about sort of the magnitude of the impact of price increases? Arvind Krishna : So great questions. So let me start, and then I'm going to give it to Jim for a lot more detail. So first of all, on Red Hat, as I think Jim answered in one of the prior questions and in some of the prepared remarks as well, we are now expecting 11% to 13% for the year. That's kind of where we expect Red Hat to be. And that's an all-in number for the year that's inclusive of Q1. So Q1 was at the bottom end of that range. We are seeing more demand coming up as we go through the year. We know our cycles of renewals in Red Hat. If you sort of think that much like other software businesses, it's about a three-year cycle. If you go all the way back to 2020, which was a boom year, those are coming up in 2023. And so we believe that will give us 1 point or 2 point further tailwind behind the Q1 numbers. So as we sort of go through that, that gives us confidence based on the demand profile, the renewals as well as the uptick of the faster-growing areas like both OpenShift and likely Ansible coming down the road that we'll see numbers in that range. So with that sort of color on that, let me give it to Jim to add a lot more color on to both Red Hat and the other part on your pricing question. James Kavanaugh : Yes. Thanks, Arvind, and thanks, Toni for the question so we can g”