Good afternoon, and thank you for joining us on today’s conference call to discuss Palo Alto Networks’ Fiscal Second Quarter 2021 Financial Results. I am Karen Fung, Senior Director of Investor Relations. This call is being broadcast live over the web and can be accessed on the Investors Section of our website at investors.paloaltonetworks.com. With me on today's call are Nikesh Arora, our Chairman and Chief Executive Officer; Luis Visoso, our Chief Financial; and Lee Klarich, our Chief Product Officer. This afternoon, we issued a press release announcing our results for the fiscal second quarter ended January 31, 2021. If you would like a copy of the release, you can access it online on our website. We would like to remind you that during the course of this conference call, management will be making forward-looking statements, including statements regarding the impact of COVID-19 and the SolarStorm on our business, our customers, the enterprise in cyber security industry and global economic condition, our expectations related to financial guidance, operating metrics and modeling points for the fiscal third quarter fiscal year 2021 and 2022, our intent to acquire Bridgecrew, our intend to be carbon-neutral by 2030, our expectations regarding our business strategies both in equity structure for the ClaiSec business and the vehicle for employees to invest in such equity, our competitive position and the demand and market opportunity for our products and subscriptions, benefits and timing of new products, features and subscription offerings as well as other financial and operating trends. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, which could cause actual results to differ materially from those anticipated by these statements. These forward-looking statements apply as of today. You should not rely on them as representing our views in the…

Thank you, Karen. Hello, everyone. I know Walter Pritchard, you are listening in. Enjoy your last earnings call from the other side. Next quarter, Walter will join us at this end as our new Senior Vice President of Investor Relations and M&A Finance. Well, moving on to the quarter. So let me start with SolarStorm, which many of you are describing as one of the most serious and sophisticated cyber attacks in history. The SolarStorm attack highlighted that enterprises need a comprehensive, up-to-date map of their full IT infrastructure environments, including understanding their own networks, as well as external attack surfaces and supply chains. In order for security teams to have an edge over the adverse adversaries, they need to embrace next-generation technologies that leverage AI, machine-learning and automation. To help our customers, we set up a rapid response program and when I say rapid, it was rapid. Our acquisitions of Expanse and Crypsis almost felt pre-assigned. The team swung into action. We updated XDR for all the new threat vectors. We offered free assessments from our Crypsis team. We also evaluated the attack surfaces from the outside in for Expanse and discovered that there were dozens of affected customers, including major government agencies and large companies, many of which were actively communicating with SolarStorm malware command and controlled infrastructure. So far, we've received over 1,000 assessment requests and have completed over 500. We believe that the SolarStorm attack raises the mid and long-term criticality of the cybersecurity industry as a whole. This will result in more awareness and focus on cybersecurity, which in all candor, is the need of the hour given the complete reliance on technology in these times. We expect that this attack will be a wakeup call to all enterprises to modernize cybersecurity and will serve…

Thank you, Nikesh. Climate change is an existential threat and at Palo Alto Networks, we are all-in to do our part to address this crisis. We have done some important work up to this point including LED certifications, recycling, and community involvement. We plan to step up our efforts and contribute even more. I am proud of our commitment to be carbon-neutral by 2030. We have already activated renewable energy and high-quality carbon-offset strategies. We will be reducing our emissions aligned to science-based targets and we will work across our value chain to have a lasting impact and advocate stewardship. The Paris Agreement calls on all of us to limit global warming below two degrees Celsius by 2050. We plan to reach our commitments by 2030. We will keep you informed of progress along the way. We will continue to participate in the carbon disclosure project and start sharing plans and progress – and progress using protocols set by the task force on climate-related financial disclosures. During the World Economic Forum's Davos agenda last month, we committed to increase transparency by reporting on the International Business Council’s stakeholders, capitalism metrics over time. It will take creativity, collaboration, and visionary thinking to protect the planet, and we are up for the challenge. We call on others to join us, consider aligning to the Paris Agreement and make your commitment to do your part. Now turning on – turning to our financials, as Nikesh indicated, we had a great second quarter and we continue to deliver winning innovation and adding new customers at a fast pace. This strength gives us confidence to raise our guidance for the year. I would like to start with our performance in firewall as a platform or FwaaP, which had a great quarter as we continue to…

[Operator Instructions] Our first question comes from Keith Weiss of Morgan Stanley.

Excellent. Thank you guys for taking the question and very nice quarter. I was hoping to dig in a little bit into SolarStorm and if you could talk to us about any impacts that you saw in this quarter and more expansively, how do you expect the impacts of that event to play out as we go through the year? Is there more on the comment? And what parts of the product portfolio do you think are going to get most impacted by that event?

Hey, Keith. Thanks. Look, as we said in the call, we launched a series of initiatives to make sure that our customers are protected vis-à-vis SolarStorm. That was a sustained attack, which was planned or a series of quarters, if not years. And what we realized that once you get in the supply chain and start being able to respond to 18,000 customers, the impact is going to be far reaching. What's happened is people were first reacting to that and starting to make sure on an emergency basis, there is nothing in their infrastructure, which is already infected and they have not effectively been compromised. Now with that slowly and steadily behind us, what's happening and we are noticing people are doing cybersecurity assessment. Every board is out there saying, take a look at what we've got, make sure that is - there is no breaches. Make sure that we won't be breached. The first question was, are we breached? The answer was, no, we are fine. Somebody think, wait a minute. Could we have been breached, if we had SolarStorm? The answer is, yes. So what we are noticing is there not going a rethinking of the cybersecurity architecture. In that context, our Crypsis acquisition was very helpful, because that's where we had the field force to be able to go out and address these situations, which kind of sort of came to light and I don't know if you know Wendi Whitmore, PAN-IBM X-FORCE until now and she is going to come join us. She has had a stint at CrowdStrike and FireEye and Mandiant as well. So she's going to come drive that effort even more aggressively for us. We also saw that in our own case, XDR protected us, which again becomes an important distinction for us, because it was a zero day attack and we found it because of behavior anomalies that were happening on the endpoint, which is effectively a key feature of XDR. So we are seeing a lot more conversations around that. And Expanse's ability to be able to look at what assets are exposed to the outside which, in this case with SolarStorm servers, we also used sort of an Expanse and out and looked and saw that there were hundreds of customers with open SolarStorm servers sitting on their network. So it's generally been useful for us in the XDR part, the XSOAR part, the Crypsis part, but more importantly, from a board focus on cybersecurity hygiene is been critical.

Excellent. Thank you.

Thanks.

Our next question comes from Philip Winslow of Wells Fargo.

Great. Thanks for taking my question, and congrats on another fabulous quarter. Really want to focus in on Prisma Cloud and the VM and CN-Series. Obviously, you saw massive uptick in the number of workloads that you protect in the cloud with Prisma Cloud and then obviously a massive uptake year-over-year, I think, more than four x in terms of the number of firewall software customers. So I guess, kind of two related questions on here. First, Nikesh, why are you hearing that customers are choosing your Prisma Cloud obviously aside from the largest deal in that product's history this quarter. And then the follow-up to that, when you think about Prisma Cloud, plus the success you are seeing in the VM and CN-Series, are those two combined kind of changing the customer dialogue that you are having as you are seeing these customers see - accelerate their shift to cloud?

Yes, Phil. Thank you. Look, if you look at it, if you abstract yourself, we grew our firewall as a platform 21%. Right? And we've been talking about trying to get that to the 15% range. You can see all that growth has come from firewall in the cloud, i.e., Prisma Access 2.0, and has come from our VM and CN-Series firewalls. And it's kind of – it’s hard to understand if you are not sitting with the customer. We have seen a few deals flip from hardware to software in the last week. Literally, customers aim to buy a bunch of hardware and said, wait, hold on. You guys launched this Firewall FLEX, why don't we just go into this flexible credit program where we can spin-up as many firewalls we want and spin them down if you don't need them and they can carry those credits to the cloud. So what - I think what is something very important to understand, we are going through a hardware-to-cloud transition now in the industry. It does not mean as the demise of the hardware industry. It just means that the incremental shift is beginning to happen. It's gathering momentum. You can't keep posting tens of billions of dollars on billings for AWS, GCP and Azure and not see a decline in datacenter over time. It's going to happen. So if you look past the quarters and in that transition, it becomes very important, how are you going to protect yourself in the future? So we are beginning to see customers go from hardware to software and honestly, we are encouraging it to the extent the customer wants our opinion. We have the ability to sell the hardware, the best in the industry and the ability to sell them software firewalls,…

Okay. Great. Thank you very much.

Thanks, Phil.

The next question comes from Sterling Auty of JPMorgan.

Yes. Thanks. Hi, guys. So, in the context of the guidance increase, I did noticed that the next-generation security ARR is staying the same despite what looks like good results in the quarter. Was there any pull-forward or what additional commentary can you give us around that NGS ARR outlook for the year?

Honestly, there is no hidden meaning and there we are not trying to tweak it in such a way that, look, we've seen strength in cloud firewall. We've seen phenomenal strength in Prisma Access. I have to tell you that this pandemic has forced the network conversation about how do I make sure Sterling can access every application at home, not just the ones that I let him access. It's gone from a, it's good to have remote access, you have to have remote access and then the security and certainly start paying attention to network architecture. And then, and Lee and his team have delivered this phenomenal next upgrade where we can look at both web-based non-web-based apps. So we are seeing phenomenal success. So there is no tempering of our expectation and ambition on NGS. It's just how the math works right now.

That makes sense. Thank you.

Next question comes from Saket Kalia of Barclays.

Okay. Great. Thanks for taking my question here guys. Nikesh, maybe for you, you touched on this in your prepared comments. Can you talk about the cloud and AI equity structure? What's the reason for setting up that structure now? And how is it going to work mechanically?

So, well, Saket, two-and-a-half years ago, when I came here, we talked about building a cloud security business and we talked about building an AI/ML-based business. Last quarter, we started showing you the two pieces of NetSec and ClaiSec. You've seen that we are aspiring against $735 million of ARR in cloud AI security. We also shared our left-hand side, our Network Security business actually has phenomenal cash flow margin, 38% going to 41%. So that's a cash-generative part of our business whilst we go through a hardware-to-software transformation. On the right-hand side, we are competing with behemoths out there today, like the CrowdStrikes of the world and in the XDR space and a bunch of start-ups in the cloud space. That's an area for investment. We think that the market inherently values both those business fundamentally differently. It values the network security business and cash flow. It values the cloud AI business and ARR. So we want to be able to create the opportunity for the market to value our businesses differently to create more transparency for the shareholders and it also allows us to keep investing in the cloud AI business and in the interest of driving more ARR. So what we've done is, as you saw, we've separated our financials, showed you both NetSec and ClaiSec. Luis and team have worked hard to get them audited and make sure that we can keep reporting them on a more regular basis going into next fiscal year and we are looking at various equity structures that allow us to create incentive plans as well as potentially in the future, monetize the ClaiSec business for a different set of investors compared to the Palo Alto investor.

Our next question comes from Fatima Boolani of UBS.

Good afternoon. Thank you for taking the questions. My question is around the firewall as a platform business and the metrics there. Appreciate that deals sort of changed flavor in the 11th hour, to your point, Nikesh. So, what are some of the core assumptions we should leave with around the installed base refresh opportunity, as well as the R&D pipelines for hardware and appliance refreshes within the product portfolio on the Strata side?

Well, Lee, do you want to talk about the hardware refresh plans? All I am saying is, that we are not taking our pedal off the metal. We are going aggressively trying to continue to build the next generation of hardware and focus on refresh. I will tell you, in absolute dollars, we still sell the largest number of hardware firewalls in the industry. We get lost some percentages. It doesn't matter if other vendors are out there generating 18% growth. We still sell more absolute dollars of product in a quarter than anybody else. But Lee, can you talk about the hardware?

Yes. We are always working on the next generation of hardware since the beginning of the company until now and we have some amazing new platforms coming. I won't tell you too much until they are out, but we are always working on that, really exciting stuff there. The software side as well with PanOS and new security capabilities, and another set of amazing things we are working on. One thing I'll point out in that though is the leverage we get across hardware, software and cloud-delivered. Part of what really resonates with our customers is not that they get two, pick which one they use from us, but their ability to actually use hardware where they need hardware, software form factors when they need software, cloud-delivered where they need that, with a set of consistent security capabilities, easy to manage and operationalize, that's something that only we can deliver to our customers.

Thank you.

The next question comes from Brian Essex of Goldman Sachs.

All right. Great. Hi, thank you. Thank you for taking the question. I was wondering, Nikesh, if you could dig into a little bit Firewall FLEX and your credit-based licensing model for next-gen firewall. What was the timing of that roll out? How long has it been in market and how much adoption is that in terms of the way it's impacting your model?

I'll give you the preface of it and then Lee can jump in and give you the details. But look, we hadn't refreshed our VM pricing policy, it was set up more like a hardware business, where you had to tell us which particular model of software you wanted and you were basically stuck to that model. And if you think about software deployment, it's a key. I can give you a key with more capacity or a key with lower capacity. So, we just felt that we were being too pedantic in our approach in selling software in a very hardware-centric model, where you can only buy five subscriptions out of eight. So we worked hard over the last 18 months to get this all done into a new credit-based model where you can right size your requirements. So you can spin them up and spin them down. But if I say everything then Lee doesn't get to say much. So Lee, explain the – he often looks at me saying, why do you say you are going to help answer the second half and wait when you don't stop? So, Lee, I'll stop.

Yes. In my defense, the - like when we came up with the model that was sort of, I call it, the normal model, and that's what others were doing. I am actually – and our customers are very excited about this new Firewall FLEX model, because it is the first of its kind in the industry, giving our customers the flexibilities, and Nikesh was saying to choose how many CPUs do they need? What subscriptions do they want? Where they want to deploy it. Cloud, on-prem, et cetera, that level of flexibility and to do in a credit model where each individual deployment can actually be different. So we've actually – it's one of those unique cases where we've given the customer a lot more flexibility and options yet made it simpler at the same time. The last piece that I addressed was in the old model, it was getting too cumbersome on how to offer all the different security subscriptions. This model allowed us to easily scale up to all of the current security subs, plus any future subscriptions we come out with.

How long it’s been working with this?

Sorry. We just launched the beginning of February. So, it's only been out for a few weeks. We are already having customers respond incredibly positive to it.

All right. Very helpful. Thank you.

Thanks, Brian.

Next question comes from Gray Powell of BTIG.

Hey, great. Thanks. Can you guys hear me okay?

Yes.

All right. Congratulations on the good numbers. So, yes, last week, you all announced cloud secure gateway features in Prisma Access. How important is that functionality to your customer base and do you think it creates an opportunity to gain incremental share from legacy players like Symantec or even some of the higher growth companies like Zscaler?

Well, sorry. Okay. Now he changed his definition of legacy. Never mind. Sorry, I was just kidding. We get punchy after too much coffee on our earnings call day. So, Lee, go ahead. This one is yours.

Look, as I think all of you have seen or heard from us before, we used to set up this sort of either or approach, either it was next-gen firewall approach to security or it's a proxy approach and you've heard us talk a lot about the challenges associated with the proxy approach. Limited application support, some of the challenges with applications, and breakage and performance, but at the same time, we recognized is, there are certain use cases out there where there is a right way to do it. And it is a -- could be very complementary to what we do from a next-gen firewall perspective. And so with this release, we basically integrated that into Prisma Access, such that we can now give our customers the ultimate of flexibility on how they connect to the cloud through both the secure web gateway model, plus our next-gen firewall natively integrate it and provide all the great security capabilities we have.

So I think, Gray, what Lee is saying is, we changed near looks religion on proxies. Now we also support proxies as part of our product and we also support the app-based approach. So now you can go after web-based apps and non-web-based apps and you said 53% of your breaches come from non-web based apps, and proxies are used less in non-web based apps. But we cover both opportunities by doing it the proxy way or the non-proxy way.

Got it. Okay. Thank you very much.

Next question comes from Patrick Colville of Deutsche Bank.

Hey there. Thank you for taking my question. I appreciate it. Just want to ask about Bridgecrew. So, is that deployed on-prem in the cloud? Who buys it? Is it the kind of developer buying it with the kind of credit card type payment model? Or just help us understand that product better, please.

Yes, look, again, I’ll one, two, punch here. But we’ve been making bets for the last two-and-a-half years where the security is, in the cloud space especially. Went from workloads, went to containers, went to micro-segmentation, went to DLP, went to IAM. And what we come to the realization in what's happening is there is a bunch of – so what happens is you do, you build an application with a developer, you give it to your IT team and they deploy it and say, hey, you silly guy, you've got a bunch of security bugs and go fix it, the guy says, so what's my security bugs. Why didn't you tell me before? They started going to open source and trying to find security monitoring software to see, let me just make sure, I don't build stuff with security bugs in it. So what happens is what Bridgecrew has is such a – it's a open source, free, no credit card needed, piece of software just starts tracking the security bugs in your development side, CICD side. So it tells the developer, you are making a mistake, fix it. Now what happens is you fix it then you give it to the guy in security. The guy says, wait, you still have bugs. So wait a minute. I checked it. So what we've done is, we bought Bridgecrew. We'll take the open source tools that they have. We'll look at the policies there. We'll map them with the policies in the enterprise side to make sure that if you need to find data, if they are going to check for it in real-time and in production, you get to check for it for free as a developer. So, there is 26 million developers developing, they are similar security professionals. If you can get 26 million people to start checking it while they are building the application, building the software, then it's consistent with what they are going to be checked out in the enterprise side. That's the muscle we didn't have. That's a DevOps muscle. Most DevOps companies don't have security muscle. We have security muscle, we don't have DevOps muscle. We just bought DevOps muscle.

Okay. And so the monetization is, it’s via…

So, what happened is, they have an enterprise version of the free software to giveaway to developers. It's kind of like Slack. It's kind of like Dropbox. If a lot of people started using it, you want that to be in the enterprise section, because you don't want it being checked against a different product set of policies. We are going to merge that enterprise capability in Prisma Cloud, because we already checked it. And we will say, whatever your developers check for free is what we are going to check in production, they are consistent. So, if they didn't find a bug when they were writing the code, unlike to find it when we are running it.

Okay. Thank you.

Next question comes from Tal Liani of BOA.

Hi, guys. I want to go back and ask about the legacy or the hardware piece. I am trying to understand the competitive landscape now and trying to understand the customers' reaction to the fact that market is migrating somewhere else. Are there still competitive replacements? Or is this a case where customers just keep the status quo, whatever they have today, because if they take a decision, it's going to be a decision to migrate out of hardware into a more modern solution? So, I am trying to understand the dynamics, the underlying dynamics in the market and from it to understand what's the competitive landscape like?

Yes, Tal. Thanks for the question. Look, what's going to happen in my version of the world is, you will still have 40% to 50% of the customers who will still stick to a datacenter and a hardware-based strategy. I think what the markets are not fully embraced and understood is when you move to cloud, the cloud can be expensive. And many companies will say, wait a minute. I don't need to do all the stuff in the cloud. I am going to still keep a datacenter and do some of the less expensive stuff here, why do I want to take everything and make it real-time bleeding edge in the cloud. So you are going to end up in a hybrid world, where people are going to maintain datacenters and maintain the cloud. So, I don't think every customer in the world is moving to the cloud, but I think that on the margin, yes, you are seeing a bigger shift to cloud than you are people sticking out to. So with that fact in mind, we do see competitive replacements when customers have end-of-life for existing hardware installs, right? They are sitting there and saying, I am coming to end of life for legacy vendor A, B, C, D or E. Should I go replace this with new versions of legacy A, B, or C? Or should I look at a new network architecture, which allows me flexibility of having hardware and software to more access. So the example we gave, we did a $20 million deal with a customer who built – who bought Prisma Access for half of their employees, who bought hardware firewalls for the datacenters and who bought virtual firewalls for their cloud and they make sure they are all consistent. So, we do see customers end of life in legacy hardware, which is dead ended, which doesn't have a software form factor or a firewall in the cloud capability and we do see them transitioning to a hardware and software model. So it's not zero sum. It's not either or. It sometimes ends up being this and that.

Got it. Thank you.

Next question comes from Brent Thill of Jefferies.

Thanks. Nikesh, there is a lot of questions from investors about this proposed equity structure and the timing and what this means. I am curious if you could just double click on what you think this looks like and why are you doing this right now?

Thanks for the question. Look, it's not – first of all, we have spent the last six to eight months preparing for the financials visibility or transparency of ClaiSec and NetSec. It requires a lot of work on our accounting side, lots of rules to make sure how we do transfer pricing between the entities. How do we leverage our common sales force from Palo Alto Network. So, and again, we are not doing anything yet. All we'd have is we presented to the Board, and they have agreed that this is an area for us to go ahead and work further on, which means we are looking at seeing how can we make the ClaiSec equity more transparent if we believe the market value is that differently than the Palo Alto equity. Now the market could say, this is great, we just love your Palo Alto equity and we will help it achieve all the price targets some of the more enthusiastic and optimistic ones you have. In which case, we may not have to do anything. If not, we may actually go take a look at the ClaiSec equity and see how do we create more transparency, because fundamentally, if you look at it, you've got one business and generating $1.5 billion in free cash flow, which is fantastic. We like it, 38% margin now gone to 41% whilst we are going through hardware-software transition. On the other hand, we have a $735 million ARR business growing at 77%. That business has negative cash flows and the market looks them together and values us one certain way, maybe the market will value it differently if we look at it differently. So we are just exploring the opportunity of being able to make that value more transparent. We are not going to change the operating structure of the company. We are going to still run it as one company with two basically agile business units, if that makes sense.

Our next question comes from Michael Turits of KeyBanc.

Hey. Good afternoon, everybody, and nice quarter. It was a really good quarter on firewall platform as a service and you raised Network Security, but the product itself was just a slight beat and you didn't raise it. So what's the delta? What really raised that guidance on networks for the year and drove the outperformance?

That’s software.

What was the biggest piece, VM-Series, Prisma Access, subscription attach, how would you rank those?

Access, VMs, and subscriptions. Not because subscriptions aren't doing well. It's just a very large number. So, sustaining a large number growing at 30% is a good thing.

Great. So it's really, Prisma Access was the big driver?

Yes. I mean, look at Access has gone to a – when I joined, it was called GlobalProtect Cloud servicse. It was barely $10 million in the quarter. Now it's going gangbusters. I just said, now I just said, we did $20 million deal across a customer's entire enterprise, which included Cortex and Prisma Access in there. So, we can get to $10 plus million deals in Access in one deal where we were doing $10 million in one quarter, three years ago. So, that makes it interesting.

Great. Thanks, Nikesh.

Next question comes from Jonathan Ho of William Blair.

Hi there. I just wanted to get some additional color in terms of the subscriptions that you've been, I guess, selling with the firewalls. Is there any way that you can maybe provide some additional perspectives on, maybe which ones are doing well, and what the average number of subscriptions being taken are and, yes, that would be great. Thank you.

Yes, Jonathan, that the – obviously, we had four when I joined and they are all had over 50% attach rates even before. The one which has gone from zero to 500 is DNS secured in the last two years. As we just announced, we crossed the 5,000 customer mark. Many of the newer subscriptions were just launched as part of 10.0 with our software. So they are all very recent, which includes IoT, SD-WAN, DLP, those things. Yes, those things.

Right.

And, sorry, I got Lee sitting next to me, socially distanced, I keep nodding, asking him what he - if I forgot anything. But, SD-WAN, you can see is combined with our CloudGenix efforts. So we see SD-WAN traction between the two of them. We are seeing a lot of interest in DLP, which is very early. It's only a few weeks old and IoT, we see situations but that's more of an architectural sales, because not just at that subscription. People want to look at the IoT architecture for the enterprise. But we launched healthcare IoT. So it's part of the IoT effort. So, I have expectations from DLP. I have expectations from SD-WAN, obviously a combination of CloudGenix and IoT, but I think we'll see different approaches and different sort of trajectories in terms of adoption. IoT is a bigger ticket when we sell it. DLP is a simple attach and it’s easy to deploy like DNS security is. So they take different trajectories at different prices.

Our last question comes from Andy Nowinski of D.A. Davidson.

Great. Thank you for squeezing me in. So, you mentioned a number of eight-figure deals for both Prisma Access and Prisma Cloud, which were record deals for the company. Just wondering if you could provide any more color with regard to your overall large deal activity for the quarter? Was the activity up year-over-year? And if you did see an increase in the overall activity, kind of what drove the growth? Thanks.

Yes. Andy, I think purely math. And I am waiting for Luis to go look. But purely mathematically, we added the same number of customers we did this year than we did last year and our billings grew 20%. So we got – we definitely got to have more bigger deals in there. Hurry up, Luis, what are you doing? So, yes, we are seeing strength. But I would say, it's kind of interesting. If you look at the landscape, the higher end of the cloud sales see bigger deals, because you are comparing them to large GCP, AWS, Azure spend. So even if you get 2% to 5% of the GCP, Azure, AWS commitment, you end up with the large deal, which is typically the seven plus figure range. And you see a similar activity in Prisma Access, because it ends up being a three-year TCV style deal with – if you get the top end, like 100,000 plus users, you end up with a seven-and-a-half figure deal. XDR in the market typically ends up in the $1 million to $2 million range, because of competitive pressures and competitive activity. So you just need to do a lot more XDR deals to get there. So, it's different depending obviously, firewall, again, depends on the installed base, the estate and the end of life and ELAs have their own characteristics depending on again, how much estate is there and how much people are reupping and how much software they are buying. Luis?

So, here is how I look at it. If you add up the billings of the last largest deals that we did this quarter and you compare that to a year ago, the total is 35% higher. So it just gives you a magnitude of how significant those large deals are for us.

Thanks, guys. That's really helpful.

All right. Well, see, Brad Zelnick, if you change your mind about us, you don't even get to ask a question. All right. Thank you everyone. Thank you for joining us, and thank you very much for all your questions. We look forward to seeing many of you in our upcoming investor events. I also want to thank our customers, partners, and of course, our employees at Palo Alto Networks. Have a great day.

Thank you.