The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Matthew Alan Stotler - William Blair & Company L.L.C., Research Division - Analyst
: Maybe just want to start off on the guidance update. So very clear commentary on where you're seeing weakness in the tech end market.
I guess, the first part would be -- I guess, what's most incremental there, right? Is it the deals are getting pushed out? Is it contractions are more
than you expected? Or the duration of those contractions are more than expected? And then if you think about what's implied for that core recurring
SaaS piece in your updated guidance, how does that compare to what that core recurring SaaS assumption was in last quarter's guidance. So I was
just trying to get that how much was SaaS and how much was other nonstrategic business.
Question: Matthew Alan Stotler - William Blair & Company L.L.C., Research Division - Analyst
: Got it. That's helpful. And maybe just as a follow-up. You guys have kind of a number of key partner relationships that you typically discuss, Microsoft
being one of those. You had a couple of announcements during the quarter relative to Microsoft and AWS specifically. Let's just get an update on
the momentum you're seeing with those relationships in this environment and how those are taking shape?
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Great. Ian, maybe sticking with you. You don't guide ARR, obviously, but I'm wondering with the dynamics that you talked about on revenue on
services and sort of kind of on-prem license piece, is there any different way we should think about the ARR impact this year vis-a-vis sort of your
revenue comments?
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Got it. That's super helpful. And then 40% of net new ARR was from security this quarter, which continues to tick higher. I'm curious, on some of
these larger sort of enterprise deals, is security becoming even a bigger part of that land motion? I know it's obviously been a big part of the upsell,
but kind of curious if customers on the enterprise side, on the big deal side almost as a security first initiative.
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