Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Aaron Schwartz with JPMorgan. Please proceed.
Aaron Schwartz - JPMorgan
Hi, good afternoon, and congratulations on the results. I just had a follow-up question on the change that you talked about in the software pricing. It looks like you’ve modified that pricing down a little bit due to maybe higher density of demand that you’re seeing. I’m just wondering -- wonder, if you could provide a little more detail on that? And two, is that decision -- was that made internally or is that done on feedback from your customer base?
Bill Richter
Sure, Aaron. Thanks for the question. I think you have two parts to it. One is, just how the change of pricing worked and, two, what was the driver? So on the first point, just to clarify, software has historically been priced on per node basis, so whether or not about a 6000 or 12000, the price of the software license was the same. And what we’ve seen -- it didn’t matter historically so much, where there wasn’t a big difference in the variety of nodes that we sold.
But given that we increasing from 1,920 to 12,000, now it’s starting to really make sense to change the pricing structure to be one that’s more correlated to the number of terabyte the customers is purchasing rather than the number of nodes, and we see in it the mix percentage for software and we see that in the field, we believe that we’re certainly able to capture a higher value given what the customers are demanding.
Aaron Schwartz - JPMorgan
Okay. That’s helpful, so it sounds like this was just an internal review that was the driver for the change?
Sujal Patel
Yes, that’s right. I mean, just be clear, our customers don’t typically ask for a price rate, but--
Aaron Schwartz - JPMorgan
Okay. And then I know you’ve made a lot of changes internally and I’m just wondering if there is any way to separate sort of the improvement here, if that’s due to the some of the operational changes that you’ve made or really just a market acceptance or moving beyond, early adopters, I know, it is pretty tough, is there any more color you can put on what you saw from the demand perspective relative to some of the changes you made internally?
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