Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Aaron Rakers – Wachovia.
Aaron Rakers – Wachovia
I just want to first start on the macro commentary. The sense is that while it looks like the results aren’t really seeing any pressure at this point, the tone sounded like you could be seeing a little bit of incremental either elongated sales cycles or decision cycles. Can you elaborate on what you’re seeing just in the current environment and maybe what trends have looked like thus far in to the month of July?
Charles B. Westling
We continue to see good activity in July as we’re a couple of weeks in to the quarter. So, we haven’t noticed any significant change from how we exited the second quarter. I think our commentary as it relates to the macro environment is just a reflection of caution out there and scrutiny of deals. I wouldn’t say that deals from my perspective are being any more or less scrutinized than what we’ve seen earlier in the year but that continues to be a variable that you have to factor in as you look across the pipeline of opportunities and as you think about what expectations and performance results you can drive. So, I think we continue to see an environment that is pretty similar to the environment that we’ve been living in throughout the first half of this year. Obviously, that’s a view of the world on July 16th, things can change in a way that’s more adverse to what our opportunities are but, that’s what we see today.
And as I look across the pipeline throughout the rest of the quarter, the back half of the year, we have, as we’ve seen in previous quarters, see some projects that may have been delayed or maybe decreased in amount due to some of these external considerations. And, on the other side we’re seeing projects that maybe are getting accelerated relative to original expectations or being increased based on compelling technologies that can drive significant ROI opportunities for our customers. So, longwinded way of saying it, it’s counter bailing, it’s balancing right now both ways. I don’t see a marked change today from what we’ve seen earlier in the year.
Aaron Rakers – Wachovia
If I could follow up on the technology trend comments, if you look at your disc space backup portfolio and specifically maybe digging in to data deduplication, can you help us understand how rapidly you’re seeing that develop in the market? If there’s any way of quantifying things as a percentage of your disc business that you might see being in the area of deduplication relative to the last couple of quarters?
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