How has the coronavirus changed demand for Aruba?
We see behavioral changes in the ways people will work, but long term, we see demand being very consistent. Where there is networking and processing at the edge—we have very strong confidence that piece is going to continue. However, if you look at the short term, there has been some slowdown for the entire market, but that being said, we‘ve been through nearly two quarters of the pandemic and we are starting to see areas [of strength] and areas of pressure. The pressure that we see is much more pronounced in certain verticals, like hospitality and travel. Industries like health care and SLED are performing very well. Some of the large contracts we got last quarter were driven by public sector spending. From an industry perspective, it’s a tale of two cities. Certain industries are much more impacted than others. If you look at customer segments, enterprise is doing better than SMB. But again, based on how we thought SMBs would do back in March and April, they’re doing better. So, more strength than we thought back in March and April.
I also think it‘s very interesting to look at impact by geographies. Certain geographies have been much more impacted. India, Brazil, and parts of the South Pacific and Southern Europe definitely saw much more pressure from a revenue perspective. However, if you look at other geographies, like North America, it’s much stronger. Last quarter we grew 12 percent in North America. So yes, there’s pressure in certain areas and we are looking at the market by vertical, geography and customer segment and that is how we are executing. But my take is that we are starting to see some strengths come back already in our business and in the market overall.