“After all, we do have a large share of wallet at many of these clients. So there is a question of how much they will spend here, but I fully expect that we will do well in the data portfolio.”

In context

“Arvind Krishna : Erik, thanks for the question. First, let's understand. As we said, in aggregate, about $400 million to $500 million of the miss was in software overall. And when we think of those large CapEx deals, while it is majority, but I think majority is being 50% to 60% TP software, there is a lot of data also in there. It actually has less of automation because a lot of the automation portfolio has already moved to be subscription base with things like Hashi and Apptio. So as we think about that, data takes what I would call maybe the run by shooting. So in the run by shooting, data gets hurt because people are buying less of it and that impacts that. Now if I take the next 12 months and if I look at what both I talked about and where we see the demand signals, I fully expect data to perform well and to give us that tailwind that we are wanting there. Also, at the end of the day, clients have a certain number of dollars. So if Confluent looks more attractive than other things, they are going to buy more of what is the thing that gives them the most near-term value, and we are fine with that. It gives us incumbency, it gives us a footprint, and we can go back in there in the next quarter and the quarter after to get other things in case that there is aggregate budget pressure. After all, we do have a large share of wallet at many of these clients. So there is a question of how much they will spend here, but I fully expect that we will do well in the data portfolio.”