“I actually have a steady expectation from product hardware, which I think is going to underpin our growth across the board over the next few years.”

In context

“Nikesh Arora (Chairman and CEO): So, Brad, let me parse that out actually. I know I spoke faster and English is my second language, so I did try to suddenly land in there that I am positive about hardware, where I said we're seeing steady growth in hardware, both from refreshes of boxes for our customers. We're seeing expanded demand for new use cases like ruggedized and IoT, etc. And last but not least, we are seeing slow and steady takeouts of other customers. So what's happening is our SASE cohort from two or three years ago, we landed with SASE. As that end-of-life happens in that customer base for firewalls, they turn to us and say, now I know the Palo Alto security interface; I don't have to learn it and they can just put firewalls, hardware firewalls against that SASE management pain because we have the same security management pain across SASE. It's not going to be revolutionary, but it is going to be evolutionary. If you look every year, our market share in hardware firewalls goes up 200 basis points to 300 basis points. So we think there are donors in the market of market share who will constantly keep donating market share as they hit their refresh cycles. And there are acquirers of market share, and we're hopefully one of those. So I actually have a steady expectation from product hardware, which I think is going to underpin our growth across the board over the next few years.”