Question-and-Answer Session
Operator
(Operator Instructions) Our first question is from the line of Brian Freed with Morgan Keegan & Company
Brian Freed – Morgan Keegan & Company
On the de-duplication side of things, can you give us any more color into the mix between the branded DXi product and the EMC royalty contribution in the quarter?
John W. Gacek
No, but both were up. Again, our position there, Brian, as you know well, we don’t want to talk about our partners’ products, so we are not going to break those up separately, but both were up and we both are having success in the marketplace.
Brian Freed – Morgan Keegan & Company
As you guys talked about the go forward strategy in leveraging more from your branded sales force, does that to some extent imply a more singular focus on the mid-range to avoid channel conflict with say EMC, and then with Dell forthcoming being kind of a low end fulfilling solution for de-duplication?
Richard E. Belluzzo
Yes, Brian, it actually, if you look at the results, with our semi-500 Express, we got a preconfigured very purpose target and product implementation that is really built around our channel partner relationships and being able to leverage those, so it really takes advantage of our historical success in the open systems, kind of mid range and up to the low end of the enterprise.
Brian Freed – Morgan Keegan & Company
Lastly, I might have missed it in the details, but did you given the percentage of DXi that has the right to tape function enabled.
John W. Gacek
We didn’t actually. I am going to oversee if we have it. I don’t have it handy.
Brian Freed – Morgan Keegan & Company
Do you have the sense it has changed materially?
John W. Gacek
I’m looking at Brad. I don’t think we know right now.
Richard E. Belluzzo
I may just add to this whole process. We have been pursuing this market, there is no doubt this de-duplication replication trend is probably one of the most significant, if not, the most significant storage trend that is underway, and we entered the market with our platform, with our product, and as opportunities developed, we added EMC, recently Dell, and that has evolved into this perspective that we have an opportunity to partner and to build this ecosystem where we have multiple suppliers with replication compatibility and that leads us to getting more focused in places where we can deliver more value which is more, we call, the low enterprise, mid-range part of the market. Today, we are not fully aligned there. We have more work to do to get our sales force channeled, marketing program, and product, I would say, as well, all aligned around that opportunity, and we are pretty aggressively focused on that, and we believe we need to do that in order to optimize our results, and today, we are not exactly where we need to be. I often tell our team, it is like a kid’s soccer team where this is great opportunity, everyone is after the ball and we are kind of bunched up on the field, and we have got to spread it out, play our positions, and I think we will get a lot better results in the marketplace with a lot lower cost.
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