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C2010-515 IBM SmartCloud Application Performance Management V7.7 Fundamentals

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C2010-515 exam Dumps Source : IBM SmartCloud Application Performance Management V7.7 Fundamentals

Test Code : C2010-515
Test cognomen : IBM SmartCloud Application Performance Management V7.7 Fundamentals
Vendor cognomen : IBM
: 50 true Questions

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IBM IBM SmartCloud Application Performance

IBM Drives Watson AI in entire places | true Questions and Pass4sure dumps

IBM kicked off its annual deem partner and developer conference with a focus on making Watson accessible everywhere. Watson has historically been a solution only purchasable through IBM’s Cloud functions. however nowadays, IBM introduced it is opening Watson to dash on any deepest, public, hybrid or multi-cloud answer. moreover, IBM is providing an on-premises solution operating Watson. IBM is nearly looking to construct Watson probably the most accessible synthetic Intelligence (AI) concede that can execute where ever the facts resides, notwithstanding it's split between systems.

IBM has been a leader in AI expertise with the pile of Watson, an intellectual platform able to processing a wide reach of tips and adapting to very nearly any application. considering its introduction, Watson has been utilized to a to pretty much everything from competing with people in video games to client service to scientific and company modeling. Watson is recognized as an creative breakthrough that's paving the course of applied AI. entire over the keynote handle, a pair of corporations, including Geico and Hyundai economic, discussed how they're already leveraging Watson AI because the foundation of their commerce options.

IBM Cloud inner most for DataIBM

IBM is now extended the attain of Watson platform (Watson Studio, Watson Assistant, Watson OpenScale, and so on) on the brand unusual IBM Cloud inner most for records (ICP for statistics), which can subsist deployed on IBM Cloud or any inner most, public, hybrid, or multi-cloud environment by utilizing Kubernetes technology. moreover, IBM announced an extension of Watson computing device gaining information of with the Watson laptop researching Accelerator for prime-efficiency GPU clustering.

while Watson will dash on each power and X86 techniques, there's a performance improvement to running on IBM’s vigour-based mostly methods, and in AI, efficiency concerns. whether it's developing unusual AI fashions or processing information in actual-time, delays can charge businesses in productivity, nice, and/or safeguard. IBM’s energy AI platform combines discrete Power9 CPUs with Nvidia snap shots Processing devices (GPUs) with lofty GPU remembrance bandwidth. The PowerAI platform is the handiest GPU-accelerated platform that links the processors to the GPUs using Nvidia high-pace NVLink interface. The AC922 will besides subsist configured with up to 2 20-core Power9 CPUs and up to six Tesla V100 GPUs. discrete systems will besides subsist linked to scale to as much as 256 GPUs. in accordance with IBM, recent checks established the means to developed AI models up to ten times quicker than competing systems. in consequence, IBM is now making Watson accessible on the PowerAI platform for on-premises deployments. As a allotment of the announcement, IBM is additionally renaming the PowerAI commercial enterprise platform to the “Watson computing device Accelerator”.

Watson has develop into a key groundwork for the company’s product and service offerings, due to this fact, IBM is carrying on with to set money into new capabilities for the platform that might be brought in the future. IBM besides offers company capabilities to uphold consumers in enforcing AI of their business, which makes IBM stand out from the repose of the AI crowd.

whereas IBM did not spotlight how the business’s different analysis efforts will influence the Watson platform, TIRIAS research believes that IBM’s leadership in quantum and neuromorphic computing will further develop the platform and when mixed with IBM’s commerce services, will relaxed the commerce a number one position within the evolving AI landscape.

The creator and members of the TIRIAS analysis personnel don't dangle fairness positions in any of the companies mentioned. TIRIAS research tracks and consults for companies entire through the electronics ecosystem from semiconductors and sensors to the cloud. individuals of the TIRIAS research crew bask in consulted for IBM, NVIDIA, and different organizations throughout the electronics ecosystem.

IBM Db2 query Optimization the usage of AI | true Questions and Pass4sure dumps

In September 2018, IBM introduced a unusual product, IBM Db2 AI for z/OS. This artificial intelligence engine monitors data access patterns from executing SQL statements, makes consume of computer discovering algorithms to settle upon most excellent patterns and passes this tips to the Db2 question optimizer for consume with the aid of subsequent statements.

computer discovering on the IBM z Platform

In may of 2018, IBM announced edition 1.2 of its desktop gaining information of for z/OS (MLz) product. this is a hybrid zServer and cloud application suite that ingests performance facts, analyzes and builds fashions that characterize the health fame of a number of indicators, monitors them over time and offers precise-time scoring capabilities.

a pair of facets of this product providing are aimed toward helping a group of model developers and managers. for instance:

  • It supports discrete programming languages comparable to Python, Scala and R. This makes it feasible for statistics modelers and scientists to consume a language with which they're popular;
  • A graphical user interface referred to as the visible model Builder courses mannequin developers devoid of requiring tremendously-technical programming advantage;
  • It contains discrete dashboards for monitoring mannequin outcomes and scoring functions, as well as controlling the system configuration.
  • This computing device researching suite was at the start aimed at zServer-primarily based analytics purposes. probably the most first evident choices became zSystem performance monitoring and tuning. gadget administration Facility (SMF) records that are immediately generated with the aid of the working tackle provide the raw facts for system useful resource consumption equivalent to relevant processor utilization, I/O processing, remembrance paging etc. IBM MLz can assemble and sustain these statistics over time, and construct and train models of tackle conduct, ranking those behaviors, determine patterns not readily foreseen by course of humans, help key efficiency indications (KPIs) and then feed the mannequin outcomes back into the tackle to impress tackle configuration adjustments that can help performance.

    The subsequent step became to set into effect this suite to dissect Db2 efficiency facts. One answer, referred to as the IBM Db2 IT Operational Analytics (Db2 ITOA) concede template, applies the machine studying expertise to Db2 operational facts to profit an understanding of Db2 subsystem fitness. it could possibly dynamically build baselines for key performance indicators, supply a dashboard of these KPIs and give operational cadaver of workers true-time perception into Db2 operations.

    while well-known Db2 subsystem efficiency is a crucial ingredient in middling software fitness and performance, IBM estimates that the DBA steer personnel spends 25% or extra of its time, " ... combating access path complications which cause efficiency degradation and service influence.". (See Reference 1).

    AI comes to Db2

    agree with the plight of synchronous DBAs in a Db2 environment. In state-of-the-art IT world they necessity to uphold one or greater gargantuan statistics applications, cloud application and database services, utility installation and configuration, Db2 subsystem and software performance tuning, database definition and management, catastrophe recuperation planning, and more. query tuning has been in actuality given that the origins of the database, and DBAs are usually tasked with this as smartly.

    The coronary heart of question course evaluation in Db2 is the Optimizer. It accepts SQL statements from functions, verifies authority to access the information, studies the places of the objects to subsist accessed and develops a list of candidate data access paths. These access paths can embrace indexes, desk scans, quite a few table subsist allotment of methods and others. within the information warehouse and gargantuan records environments there are constantly further choices attainable. One of these is the actuality of abstract tables (now and again called materialized question tables) that comprise pre-summarized or aggregated information, therefore enabling Db2 to steer clear of re-aggregation processing. an additional option is the starjoin entry direction, touchstone within the statistics warehouse, where the order of table joins is changed for performance explanations.

    The Optimizer then reviews the candidate access paths and chooses the access route, "with the lowest cost." charge during this context potential a weighted summation of aid utilization including CPU, I/O, reminiscence and different components. finally, the Optimizer takes the lowest can charge access path, outlets it in remembrance (and, optionally, within the Db2 listing) and begins entry route execution.

    huge records and records warehouse operations now consist of utility suites that enable the company analyst to consume a graphical interface to construct and maneuver a miniature information model of the statistics they want to analyze. The packages then generate SQL statements in keeping with the users’ requests.

    The issue for the DBA

    to subsist able to carry out first rate analytics in your discrete statistics stores you necessity a pretty ample realizing of the records necessities, an understanding of the analytical functions and algorithms attainable and a excessive-efficiency information infrastructure. lamentably, the number and location of records sources is expanding (each in measurement and in geography), statistics sizes are transforming into, and applications continue to proliferate in number and complexity. How should IT managers aid this atmosphere, principally with the most skilled and age workforce nearing retirement?

    take into account besides that a huge allotment of decreasing the entire cost of possession of these methods is to collect Db2 functions to dash faster and extra correctly. This constantly interprets into the consume of fewer CPU cycles, doing fewer I/Os and transporting less records across the network. considering the fact that it's regularly complicated to even identify which purposes might improvement from performance tuning, one strategy is to automate the detection and correction of tuning issues. this is where laptop studying and artificial intelligence can subsist used to awesome impact.

    Db2 12 for z/OS and artificial Intelligence

    Db2 version 12 on z/OS uses the computer discovering facilities outlined above to accumulate and store SQL query textual content and entry path particulars, as well as specific efficiency-related historic counsel such as CPU time used, elapsed times and result set sizes. This providing, described as Db2 AI for z/OS, analyzes and outlets the information in machine gaining information of fashions, with the mannequin evaluation results then being scored and made obtainable to the Db2 Optimizer. The subsequent time a scored SQL commentary is encountered, the Optimizer can then consume the mannequin scoring statistics as input to its entry route alternative algorithm.

    The outcomes may still subsist a discount in CPU consumption because the Optimizer makes consume of model scoring enter to pick superior access paths. This then lowers CPU costs and speeds utility response instances. a significant abilities is that the consume of AI application doesn't require the DBA to bask in records science potential or abysmal insights into question tuning methodologies. The Optimizer now chooses the most excellent access paths primarily based no longer only on SQL query syntax and records distribution information however on modelled and scored ancient performance.

    This may besides subsist especially valuable if you sustain facts in discrete locations. as an instance, many analytical queries against gargantuan records require concurrent entry to unavoidable facts warehouse tables. These tables are commonly referred to as dimension tables, and that they comprise the information aspects always used to control subsetting and aggregation. for instance, in a retail ambiance faith a desk known as StoreLocation that enumerates every sustain and its region code. Queries against sustain revenue information may want to aggregate or summarize income through location; therefore, the StoreLocation desk could subsist used by means of some massive records queries. in this ambiance it is middling to bewitch the dimension tables and duplicate them consistently to the big information software. within the IBM world this location is the IBM Db2 Analytics Accelerator (IDAA).

    Now feel about SQL queries from both operational applications, facts warehouse users and massive statistics company analysts. From Db2's standpoint, entire these queries are equal, and are forwarded to the Optimizer. although, in the case of operational queries and warehouse queries they should still definitely subsist directed to access the StoreLocation desk within the warehouse. however, the query from the company analyst against massive records tables may still doubtless access the replica of the desk there. This results in a proliferations of abilities entry paths, and more work for the Optimizer. fortuitously, Db2 AI for z/OS can provide the Optimizer the tips it needs to construct sane entry course decisions.

    how it Works

    The sequence of routine in Db2 AI for z/OS (See Reference 2) is commonly prerogative here:

  • right through a bind, rebind, prepare or construe operation, an SQL remark is handed to the Optimizer;
  • The Optimizer chooses the data entry path; as the option is made, Db2 AI captures the SQL syntax, entry course option and query efficiency information (CPU used, and so forth.) and passes it to a "studying assignment";
  • The studying assignment, which will besides subsist finished on a zIIP processor (a non-general-purpose CPU core that doesn't ingredient into software licensing prices), interfaces with the computer getting to know application (MLz model services) to save this suggestions in a model;
  • because the quantity of data in every mannequin grows, the MLz Scoring service (which can besides subsist performed on a zIIP processor) analyzes the model records and ratings the habits;
  • all through the subsequent bind, rebind, prepare or clarify, the Optimizer now has access to the scoring for SQL models, and makes applicable adjustments to access route selections.
  • There are additionally a lot of person interfaces that supply the administrator visibility to the fame of the amassed SQL remark performance information and mannequin scoring.


    IBM's computer researching for zOS (MLz) offering is getting used to incredible impact in Db2 version 12 to enrich the performance of analytical queries as well as operational queries and their linked purposes. This requires management attention, as you ought to assess that your enterprise is ready to consume these ML and AI conclusions. How will you measure the fees and benefits of the usage of machine learning? Which IT steer workforce must subsist tasked to reviewing the result of mannequin scoring, and perhaps approving (or overriding) the results? How will you review and justify the assumptions that the software makes about access direction choices?

    In other phrases, how well carry out you know your records, its distribution, its integrity and your present and proposed entry paths? this could examine where the DBAs disburse their time in helping analytics and operational software performance.

    # # #

    Reference 1

    John Campbell, IBM Db2 incredible EngineerFrom "IBM Db2 AI for z/OS: raise IBM Db2 application performance with laptop gaining information of"

    Reference 2

    Db2 AI for z/OS

    massive Blue at final Brings IBM i To Its personal Public Cloud | true Questions and Pass4sure dumps

    February 18, 2019 Timothy Prickett Morgan

    smartly, that took reasonably a very long time. After what seems dote eons of nudging and cajoling and pushing, IBM is making the IBM i operating system and its built-in database management gadget, as neatly because the utility pile tackle and other programs software, purchasable on its self-branded IBM Cloud public cloud.

    huge Blue previewed its plans to convey each IBM i and AIX to the IBM Cloud at its annual feel convention in Las Vegas, on scale out machines geared toward petite and medium companies in addition to to valued clientele who are looking to dash clusters of machines, and on scale up systems that bask in NUMA electronics that more tightly cluster them into shared reminiscence systems.

    There are loads of questions about how this might subsist entire subsist packaged up and sold beneath the unwieldy cognomen of the IBM energy techniques virtual Server on IBM Cloud. however they will let you know entire that they comprehend and fill you in as they study more.

    The vigour techniques slices served up on the IBM Cloud working IBM i and AIX bask in been first rolled out for early access to selected consumers to check the APIs for the manage plane, which they assume is in keeping with the PowerVC implementation of OpenStack. The preliminary valued clientele who're kicking the tires had been supposed to simplest install development and search for at various environments or protype code, in no course anything else operating in creation. This become completely intended to subsist a proof of thought setup at this element, as that you may perceive from the rollout roadmap:

    The alpha and beta testing for the energy methods slices on the IBM Cloud is on an exquisite quick track, operating from February into March, as you can see, and established availability is slated for a while in March. probably someplace towards the conclusion, they might bet. IBM is at the dawn making the vigour puffs – what else can you convene them as shorthand? – attainable within the early access tests in its US East datacenter within the Washington DC metro area; it isn't clear what iron became used. The alpha and beta checking out is being done on a group of energy S922 scale out machines, which might subsist in keeping with a pair of Power9 processors and which frankly is a big bailiwick for many IBM i retail outlets entire through itself, as well as on power E880 scale up programs, which are being scaled up to sixteen sockets and which consume the older Power8 processors. entire of the machines consume ten-core processors, which might subsist the sweet spot between efficiency, chip yield, and value in the vigour methods line. The Power9 chips within the vitality S922 servers dash at 2.eight GHz and may rapid as much as three.9 GHz if there's ample thermal headroom; these chips search for dote they can besides bask in four threads per core (also referred to as SMT4), which is not as a lot threading as the touchstone Power8 chip offers in scale out machines with SMT8 threading (eight threads per core) and twice as many cores per die (24 cores versus 12 cores). Anyway, it feels dote the vigour S922 is being fitted with the hefty cores, no longer the gentle ones. The Power8 chips in the energy E880 are operating at 4.19 GHz and additionally assist SMT8 threading (there changed into handiest a hefty core prerogative here); entire sixteen cores are populated with ten-core Power8 chips, with a optimum scalability of a hundred and sixty cores in a single rational partition on the IBM Cloud.

    both of the machines are being configured with 32 GB remembrance sticks, that are once again on the sweet spot between ability, bandwidth, and value per bit, and IBM is allowing customers to configure the machines with anywhere from 8 GB to 64 GB of leading remembrance per core. if you necessity denser remembrance to bolster the ability, that you can double it up using sixty four GB reminiscence sticks, after which double it up once more to 128 GB sticks, however this should subsist a customized order and it'll can charge considerably greater, they consider. IBM is providing disk and shimmer storage up to 2 TB for native storage on the cases and growing at 10 GB increments. exterior storage for functions and databases is on Storwize V7000 disk arrays within the racks nearby this power iron, and are linked to the servers with the aid of Fibre Channel switches. shoppers can share machines or rent committed iron, reckoning on their proclivities for absolute safety and coping with earsplitting neighbors on the virtual infrastructure.

    Steve Sibley vp and offering manager for the Cognitive programs division at IBM, gave me a sneak peek at the future vigour cloud slices on a talk over with to the Austin, Texas labs closing week, ahead of the believe convention. prerogative here is how the features and services of the rational partitions on the IBM Cloud are shaping up:

    Sibley informed us that the pricing was not yet set in stone for the digital energy potential on the IBM Cloud, but when pressed about evaluating the charge between buying tackle and renting it on the cloud, Sibley estimated that for a given IBM i or AIX workload operating on similarly configured hardware and rational partitions, working the cloud instance would charge about 30 % to 40 % more on the illustration working replete out over three years compared to buying the iron and the usage of it for three years. The difference, of direction, is that IBM is managing the vitality systems and procuring the datacenter, the electrical energy, the cooling, the safety, patch updates on firmware, the installing of the PowerVM hypervisor and its update, and the installation of the IBM i or AIX working device. When companies buy their own vitality techniques machines, unless they collect augmented services from IBM or a company partner, it’s entire on them. Pricing for the virtual machines, the reminiscence, the storage, and the operating device and databases are entire set per hour.

    by the way, it is not clear what IBM i and AIX releases are supported on the machines, but presumably the present IBM i 7.2 and IBM i 7.three releases are supported on the IBM Cloud in addition to AIX 7.1 and AIX 7.2, which can subsist additionally existing. Linux is not mentioned as a supported platform, but SAP HANA workloads are and that means that there is a Linux – and chiefly pink Hat commerce Linux – underneath it considering the fact that HANA in-memory databases aren't supported on any Unix variant, or IBM i for that weigh number.

    through March, IBM plans to bask in the IBM i and AIX instances accessible in construction in its US East (Washington DC) and US South (Dallas) regions, and within the 2d quarter IBM plans to roll it in its European datacenter in its ecu relevant (Frankfurt) region, with different datacenters popping out as require pulls and IBM pushes.

    we can bewitch a search for on the pricing as soon as it turns into accessible and perceive the course it entire stacks up, and collect the strategies of other IBM i cloud players about what massive Blue is doing.

    linked reports

    Public Cloud Dreaming For IBM i

    Skytap Says It’s pile a ‘true Cloud’ offering for IBM i

    a more robust strategy to epidermis The IBM i Cloud Cat

    What Cloud providers ought to carry out To appeal to IBM i

    Google near Launching IBM i Cloud provider, Will Says

    Is The ‘Golden Age’ of Computing Leaving IBM i in the back of?\

    Ensono Emerges With IBM i Cloud providing

    Clouds grow, but Can IBM i comply with?

    IBM finally gets Power8 Machines On SoftLayer Cloud

    All signals aspect To The Cloud, but Will IBM i flight observe?

    cellular Apps And The IBM i concern factory

    Infor Readies IBM i Cloud

    IBM i Finds a spot within the Cloud

    vigour systems Coming To The SoftLayer Cloud

    IBM Brags About Its Cloud Prowess due to SoftLayer

    IBM Buys SoftLayer To construct Out hosting, Cloud organizations

    Two query TPM Questions: true IBM i Clouds And Apple purchasing IBM i

    IBM i 7.1 Tech Refresh activities reside Partition Mobility

    AWS/400: Amazon Builds An AS/400-oid Cloud

    I, Cloud-i-us

    wanted: Cloud-i i-nfrastructure

    The X component: Head in the Clouds

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    Commvault Systems, Inc. (CVLT) Q2 2018 Earnings Conference convene Transcript | true questions and Pass4sure dumps

    Image source: The Motley Fool.

    Commvault Systems, Inc.  (NASDAQ: CVLT)Q2 2018 Earnings Conference CallOct. 30, 2018, 8:30 a.m. ET

    Good day, ladies and gentlemen, and welcome to the Second Quarter 2019 Commvault Earnings Conference. (Operator Instructions) As a reminder, this conference convene is being recorded.

    I would now dote to introduce your host for today's conference, Mr. Michael Picariello, Director for Investor Relations. Sir, you may begin.

    Good morning. Thanks for dialing in today for their fiscal second quarter 2019 earnings call. With me on the convene are Bob Hammer, Chairman, President and Chief Executive Officer, Al Bunte, Chief Operating Officer and Brian Carolan, Chief fiscal Officer.

    Before they begin, I'd dote to remind everyone that statements made during this call, including in the question-and-answer session at the stop of the call, may embrace forward-looking statements, including statements regarding fiscal projections and future performance. entire these statements that relate to their beliefs, plans, expectations or intentions regarding the future are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on their current expectations. Actual results may vary materially due to a number of risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services and general economic conditions. For a discussion of these and other risks and uncertainties affecting their business, delight perceive the risk factors contained in their Annual Report in configuration 10-K and their most recent quarterly report in configuration 10-Q and their other SEC filings and in the cautionary statement contained in their press release and on their website. The company undertakes no responsibility to update the information in this conference convene under any circumstance. In addition, the development and timing of any product release as well as features or functionality remain at their sole discretion.

    Our earnings press release was issued over the wire services earlier today and it besides has been furnished to the SEC as an 8-K filing. The press release is besides available on their Investor Relations website.

    On this conference call, they will provide non-GAAP fiscal results. The reconciliation between the non-GAAP and GAAP measures can subsist organize in Table 4 accompanying the press release and posted on their website.

    Commvault adopted the unusual revenue touchstone ASC606 on April 1, 2017. Their adoption was done on a retrospective basis, entire prior periods in their fiscal statements bask in been adjusted to comply with the unusual rules.

    As a result, the results and growth percentage they will dispute today are on a comparable basis using the unusual rules. entire references to software revenue are inclusive dollar amounts are a percentage for both software and products revenue as disclosed in their P&L.

    Today's live webcast will besides embrace a glide presentation as allotment of Commvault prepared remarks to facilitate updates on their Commvault forward initiatives. These initiatives embrace an update on their transition to subscription revenue models, as well as their recent operational review. The slides besides cover their announcement of unusual multi-year revenue and operating margin targets. If you've not done so already, I would intimate logging into the webcast now to view or download a copy of the slides.

    Please besides note that in order to best perceive the slides, they intimate enabling replete screen glide mode within the webcast. In addition, the slides can besides subsist downloaded from the Commvault website under the Investor Relations page.

    This conference convene is being recorded for replay and is being webcast and an archive of today's webcast will subsist available on their website following the call.

    I will now gyrate the convene over to Bob.

    Thank you Mike, and ample morning, everyone and thank you for joining their fiscal second quarter FY '19 earnings call. On today's convene they will dispute their fiscal 2019 second quarter results, their multi-year commerce model transformation to deliver shareholder value called Commvault Advance, including an update on the progress they bask in made to accelerate their transition to subscription revenue models, the results of their recent operational review, which includes the announcement of unusual multi-year revenue and operating margin targets, and an update on their share repurchase program. Let me briefly summarize their Q2 fiscal results.

    Software and products revenues were down 3% year-over-year. Total revenues were up 1% year-over-year, EBIT margin was 14.8%, up 550 basis points year-over-year, EPS was $0.40 per share versus $0.21 in the prior fiscal year.

    Our EBIT margin improvement was driven by cost efficiencies, implemented as allotment of their Commvault forward initiatives. Later in the presentation, they will talk about their unusual revenue metrics that will provide greater clarity to investors on their subscription model transition, which has been accelerating over the final several quarters.

    In Q2, their subscription revenue represented the highest balance of software revenue in their history and subscription annual shrink value or ACV, which they will define later in the call, accelerated its year-over-year growth to over 90%.

    As a reminder, final quarter they were implementing a major corporatewide transformation called Commvault Advance. delight bewitch note that Commvault issued a press release this morning, outlining the significant progress they bask in made since announcing Commvault forward in May.

    The goals of Commvault forward are to establish a stalwart foundation to help revenue, while at the identical time achieving much improved operating margin leverage. The implementation was a culmin turning to their equipoise sheet and cash flows in the first quarter cash and short-term investments were partially 1.1 billion ation of a pair of years of effort across products, pricing, a reorganization of their sales and distribution functions and the establishment of a much stronger, more efficient routes to market.

    We believe that their second quarter software and products revenue reflected the temporary disruption from the significant Commvault forward related changes they made during the quarter, including reorganization of their sales and distribution organizations, which in allotment shifted a significant percentage of bailiwick resources to uphold their channel and alliance partners and major simplification of both products pricing to construct their solutions easier to both sell and buy.

    We acted swiftly to implement these changes and while there was a higher plane of disruption than they had anticipated, the most significant changes are now largely completed and they are focused on go-forward execution throughout the remainder of FY 2019.

    Based on the early results of these changes, they are already seeing improved momentum and bask in seen a sharp augment in funnel growth, stalwart order tide in October and solid forecast from the field. However, given the early stage of their transformation, they design to remain conservative with their near-term outlook until they can validate the positive churn of the commerce with solid quarter-on-quarter revenue growth.

    We believe the implementation of Commvault Advance, although challenging in the near term, puts us in a much stronger position to bewitch odds of the major shift in the market and significantly improves their ability to execute their strategy and drive revenue and earnings growth.

    Commvault forward leverages their might and shores up their weaknesses. Specifically, they believe Commvault has a leading technology to enable big enterprises to consolidate data management to deal with the critical issues related to cost, cyber compliance in the cloud, which I convene the 4Cs.

    As data scale increases, they are besides well on their path to their exit by scale in their platform. They now bask in simplified software solutions, pricing, packaging and appliances to deal with the shift to simplification in both the enterprise and the midmarket, particularly with their converged appliances and Commvault complete data management.

    While they are the clear technology leader and migrating and managing data in the cloud with IBM's $35 billion acquisition of Redhat this weekend, there will subsist additional focus on cloud and Commvault is well positioned to bewitch odds of that with the leading data management platform in the industry.

    We are leading the industry in data analytics with their know your data solutions with Commvault Activate. As allotment of Advance, they are laser focused on improving their ability to accelerate revenues through a much stronger sales and distribution. These efforts bask in been further bolstered with the recent hiring of several sales leaders with stalwart distribution focus.

    Commvault has been focused on making fundamental changes to their products and their businesses that they believe will deliver sustained revenue growth and profitability over both the near term and the long-term.

    These commerce model optimization changes that will deliver shareholder value embrace an enhanced and expanded and simplified product portfolio, improved distribution leverage, a transition to subscription pricing and aligning their cost structure with their revenue growth.

    So let me talk about their product portfolio. As I just mentioned, a key element of Commvault forward is to create and enhance expanded and simplified product portfolio, which includes product innovations that construct it easier for customers to install and consume their products and changes to packaging and pricing structures to construct a dramatically easier for their sales teams and partners to sell and customers to buy their products.

    Commvault now has four distinct, simply powerful offerings. One is Commvault complete backup recovery, which is the consolidation of what was previously 20 SKUs. Commvault HyperScale Software and Appliances, just converged data management protection, combined with scale-out secondary storage.

    Thirdly, Commvault orchestrate, which is fully automated cataclysm recovery, data test and data migration, particularly in the cloud and fourth, Commvault Activate, which is designed to lighten customers know their data and then discover and extract unusual commerce insights from data under management whether that data is on-premise or in the cloud.

    All these products bask in built upon a common software and technology platform they convene the Commvault Data Platform.

    Another key strategy is to drive significantly improved distribution leverage through a combination of products, better aligned to routes to market, which embrace their appliances in Commvault Complete, reallocation of sales resources from direct selling to supporting their partners and the expansion of their alliance relationships.

    During the first half of fiscal '19 they shifted a material portion of their sales and marketing resources from direct sales to supporting their channel and strategic partners and in strengthening their strategic relationship with key partners, including HPE, net Cisco, Microsoft and AWS.

    We expanded their partnership with HP. Commvault backup recovery software will now subsist fully integrated with the HPE store once appliances. The integration will allow backup data to subsist moved natively to the cloud or back to on premise. They hope this integration to subsist available in November.

    In addition, they launched sales programs for Commvault Complete and HyperScale, which are now included HPE's global price, which continue to align their bailiwick organizations and set structure around their drawing pipeline build.

    We recently announced an expanded partnership with whereby NetApp is now a replete reseller partner. NetApp and NetApp channel partners can now sell the Commvault backup recovery software directly to its customers.

    We've continued to develop their strategic relationship with Hitachi, Bentara, Huawei and Fujitsu. They hope to perceive significant funnel build and revenue progress with both HP and NetApp during Q3. They remain excited about the commerce opportunity represented by their alliances with entire of these leading technology vendors and believe that these relationships will drive significant opportunity for Commvault going forward.

    Let me talk about their transition to subscription pricing. dawn in fiscal 2018, they began transitioning a significant portion of their unusual customer revenue to subscription pricing models. This transition has benefits to both their customers and Commvault.

    Our success with subscription models has been better than they anticipated and their repeatable revenue streams had been significantly outgrowing their legacy pricing models. This transition has created some headwind through near-term topline revenue growth as a like-for-like subscription transaction initially generates less revenue than perpetual sale, but they believe that it's the prerogative long-term model in order to drive, help and sustainable revenue growth for the future. Brian will highlight some of these key metrics, which expose their progress on this transition.

    Now let me talk about cost efficiencies. During fiscal '19, they made excellent progress in adjusting their cost structure so that they can deliver meaningful improvements to operating margins over the next pair of years. With the assistance of third party consultants, they identified areas of operational efficiencies both in the near and long term, which positively impacted the first half of FY '19 and they anticipate will drive higher operating margins for the equipoise of FY '19 and beyond.

    Our progress is evidenced by the 61% year-over-year growth in Q2 in non-GAAP operating income. Brian will address their multi-year operating margin targets later in the call.

    While they are making changes to simplify and help their business, one thing they will not change is their commitment to innovation and delivering world-class solutions and uphold to their customers. As they identified economies in their cost structure, they bask in not decreased their investment in R&D or customer uphold since their objective is to maintain their technological leadership position in the industry.

    Our commitment to lead the industry in innovation is highlighted by the announcements they made recently at their third Annual Customer and partner Conference Commvault GO. At the conference, they announced more powerful, yet simplified oversight of backup and data management operations by using sophisticated machine learning and artificial intelligence to automatically adjust backup schedules, dynamically auto optimize operations to help IT resource utilization, bewitch immediate actions to mitigate damage from a cyber bombard and provide true time alerts on critical issues.

    We besides continued to maintain their leadership position in the cloud. Commvault Solutions seamlessly work with more than 40 cloud offerings and they continue to subsist one of the leading data protection offerings to delivering workloads to the cloud in particular AWS, Azure and Google Cloud.

    Our ability to enable customers to rapidly lope workloads to, from and between clouds, while protecting the data is a significant competitive odds and remains a key driver of the Commvault business.

    Now that the foundation of Commvault forward is in place, they believe they will perceive increased topline momentum, as their channel strategy, go-to-market initiatives and alliance partnerships has started to expose positive traction with funnel growth acceleration.

    We anticipate sequential revenue improvement during the second half of fiscal '19 based on the following. One, the success of Commvault HyperScale Appliance and HyperScale Software Solutions, cloud migration and management, success for the Commvault Data Platform to gain share in big enterprises with the journey to the cloud and solutions to lighten customers mitigate and recover from a cyber bombard with highly automated, machine learning and artificial intelligence aided data protection, cataclysm recovery and intrusion detection and mediation.

    Third, becoming a leading foundation for governance, data analytics and as an optimized data source from commerce analytics and finally, dramatically improving their growth in the mid-market by offering much more uphold to their channel and strategic partners, combined with the introduction of unusual innovative product offerings and pricing.

    In summary, the implementation of the Commvault forward initiatives in Q2 resulted in disruption that did not allow us to achieve their top line objective. However, they believe the pieces are now in space for the company to execute and deliver improved fiscal performance.

    I will now gyrate the convene over to Brian. Brian?

    Brian Carolan -- Vice President and Chief fiscal Officer

    Thank you, Bob and ample morning everyone. In addition to covering the traditional fiscal highlights for the second quarter of fiscal 2019, I will besides disburse time updating you on the progress they bask in made to accelerate their transition to subscription revenue models, including metrics, which demonstrate their continued progress toward more repeatable software and products revenue streams.

    I will besides update you on the results of their recent operational review, which includes the announcement of unusual multiyear revenue and operating margin targets. And lastly, I will provide you an update on their share repurchase program.

    In addition to their earnings release issued earlier this morning, they besides bask in made available a presentation on the Investor Relations section of their website and besides included this presentation in their 8-K filing. If you are on the webcast you can follow along with these slides during my remarks.

    Q2 total revenues were $169.1 million representing an augment of 1% over the prior year period. On a sequential constant currency basis, total revenue would bask in been approximately $1.9 million higher, using prior quarter FX rates.

    We reported Q1 software and products revenue of $69.5 million, which was down 3% year-over-year. Revenue from enterprise deals, which they define as deals over $100,000 in software and product revenue in a given quarter, represented 66% of such revenue.

    Revenue from these transactions was up 8% year-over-year. The number of enterprise revenue transactions increased 10% year-over-year. Their middling enterprise deal size was approximately $284,000 during the quarter.

    Gross margins were 84.6% for the quarter. The cost of third-party royalties related to their HyperScale software solutions and the cost of hardware related to their HyperScale Appliances is included in the cost of software and products revenue. Total non-GAAP operating expenses were approximately $115.2 million for the quarter, down approximately 10% year-over-year and 7% sequentially.

    We completed side 1 of Commvault forward and organize significant efficiencies in their cost structure, which included reducing their overall headcount by approximately 7% since the dawn of the fiscal year. They ended the September quarter with 2,644 employees.

    In addition, as they fade through side II of Commvault Advance, they remain focused on maintaining their technological leadership position in the industry. They carry out not hope these operational initiatives to bask in an adverse impact their product development strategy.

    Operating margins were 14.8% for the quarter, resulting in operating income or EBIT of approximately $25.1 million. As Bob mentioned, EBIT was up 61% year-over-year.

    Net income for the quarter was $19.1 million and EPS was $0.40 based on a diluted weighted middling share weigh of approximately 47.8 million shares. As a reminder, during FY '19, they lowered their pro forma income tax rate from 37% to 27%. They believe that as a result of US tax reform, 27% will align to their long-term GAAP and cash tax rates.

    We anticipate that their diluted weighted middling share weigh for replete year FY '19 will subsist approximately 48 million shares.

    Let's now change gears and disburse some time on their subscription pricing models and their continued shift to more repeatable revenue. Their subscription pricing models are continuing to resonate with customers. They believe their transition to subscription-based pricing models over the final six quarters has been very successful.

    For the sake of clarity and transparency, they are introducing two revenue metrics to lighten investors track the growth and progress of their subscription revenue transition. As you will see, subscription revenue is becoming a larger portion of the commerce and they intend on accelerating the pace of this transition over the next several years.

    When you combine their subscription-based license sales with their other repeatable services revenue streams, such as maintenance, managed services and SaaS, it represents what they convene their repeatable revenue. They are on track to achieve their goal of having 70% plus repeatable revenue in FY '19.

    Let me start out by defining the nature of their current revenue streams. glide 9 in their presentation includes a chart that summarizes revenue based on how it is recognized and if it is potentially repeatable, nearly entire of Commvault software and product revenue is related to solutions that are dash in the customers on-prem environment for cloud infrastructure.

    We currently carry out not bask in any significant revenue streams related to hosted or SaaS solutions. As a result, as required under ASC606, the vast majority of Commvault software and product revenue is recognized at a point in time, when it is delivered to the customer and not over the course of a contractual period. This is apt for both perpetual licenses and their software subscription software licenses.

    As a reminder, their subscription software license agreements generally require a minimum, non-cancelable spending commitment and term, which is typically three years.

    We bask in intentionally used the word repeatable and not recurring to record this revenue, because it is recognized at a point in time and not ratably over the length of the contract. Each time a customer renews a subscription arrangement, Commvault will recognize the entire value of the software that was sold in the term of sale.

    The only exception to this point in time recognition principle for their software products is sales of their pay as you fade utility arrangements. These utility arrangements are generally structured with no guaranteed minimums, which means they are recognized over time based on product usage.

    We measure total repeatable revenue as subscription software and product revenue, utility software revenue and the revenue related to their maintenance and uphold services. Note that unlike software, their maintenance and uphold services on both perpetual and subscription software arrangements are recognized ratably over the shrink term.

    Slide 10 includes a summary of the benefits of subscription models. They bask in heard from many of their enterprise customers that consumption-based pricing such as subscription arrangements is very lofty on their list of prerequisites for a data management solution.

    Customers often prefer a subscription model, because it simplifies their procurement process, lowers their upfront commitment and aligns with their lope to consumption-based pricing models associated with cloud storage.

    Ultimately a subscription license provides the customer with much more flexibility to accommodate the changes in their commerce and technology. If subscription arrangements construct it easier for prospects to become Commvault customers, they are confident that the lifetime value of their customer relationships will increase. And from a Commvault perspective, they believe these models will drive a more predictable and repeatable revenue stream over time.

    Let's now search for at a simple representative case of a perpetual license transaction and how it compares with a subscription license arrangement over both a three and six-year period.

    In this example, on glide 11, they bask in compared a like-for-like perpetual license and subscription license arrangement. As you can see, the subscription solution requires less upfront investment by the customer and results in lower initial revenue to Commvault.

    In this example, the customer could purchase a perpetual license for their software for $245,000 plus annual customer uphold and maintenance. Each year that this customer renews their uphold maintenance, Commvault receives $45,000 of revenue. The total cost over a three-year term is $380,000 and increases to $515,000 over six years.

    To purchase the equivalent amount of software under a three-year subscription model, the customer would pay $300,000 either upfront or over the three-year life of the agreement. This expense is inclusive of both software and maintenance and support. Over time typically, after the first read entire (ph) the cumulative revenue from a subscription model exceeds the perpetual model and related maintenance.

    We believe this is a win-win scenario by making it easier to initially transitioned to CommVault, their customers will besides realize other fiscal benefits over time versus a competitor's solution, such as more cost efficient storage, reduced downtime and less administrative cost.

    In recognition of their transition to subscription models, they believe it is now valuable to highlight two key operating metrics, which demonstrate their continued progress toward more repeatable software and products revenue streams, which we've been discussing for several quarters now. They believe these metrics expose the potential value of the transition to CommVault shareholders.

    The first is repeatable revenue and the second is a unusual metric not previously discussed, but widely used in the industry and that is annual shrink value or ACV. I will walk you through each of these in the next few slides.

    I will start with repeatable revenue, which is shown on glide 13, as famed earlier, their primary repeatable revenue streams are subscription, software and maintenance services. The amounts included on the subscription and utility software row are inclusive of both software and maintenance and uphold revenue on these arrangements.

    The amounts included on the recurring uphold and services row is primarily maintenance and uphold revenue related to existing perpetual software arrangements. They would deem approximately 71% of their Q2 total revenue to subsist repeatable in nature.

    As you can see, their repeatable revenue has been consistently growing in excess of their legacy pricing models and were up 22% year-over-year in Q2. The recent growth of their repeatable revenue streams has been driven by subscription software and products revenue, which is shown on glide 14. Subscription-based pricing represented a record 43% of software and products revenue in Q2, which compares to 17% in Q2 of final year.

    Software and products revenue from such subscription-based models are up 136% year-over-year, a significant acceleration from final quarter. This consists of both committed and often multiyear subscription sales as well as pay as you fade utility ilk arrangements.

    The second metric, I would dote to dispute is the subscription and utility annual shrink value or ACV, which is shown on glide 16. As they transition to a mostly subscription or repeatable revenue model, this will provide greater visibility into the increased subscription contracts they sell. ACV is defined as one, the total dynamic subscription contracts value, inclusive of revenue that was recognized as either software or uphold services, annualized for a 12-month equivalent value plus two, the annualized value of dynamic utility or pay as you fade usage billings.

    We believe this ACV metric normalizes the variations in contractual length among their subscription and utility transactions and will lighten investors and analysts track CommVault's transition to more potentially repeatable revenue streams.

    This metric will subsist a valuable data point to demonstrate the growth of their subscription and utility-based pricing models that they hope to drive unusual customer acquisition, land and expand growth as well as up-sell opportunities. As of Q2, ACV has grown to $76 million after only a short term of selling subscription licenses. Importantly, ACV is accelerating and achieved approximately 90% year-over-year growth this quarter.

    As allotment of their Commvault forward initiatives, their go-to-market model is highly focused on primarily selling these subscription licenses and they hope subscription ACV to grow significantly over the next several years.

    I would now dote to disburse the next few minutes addressing both their near-term fiscal outlook and their longer-term operating targets. As outlined in today's press release, they bask in been making ample progress within their Commvault forward framework across entire aspects of the company by strengthening their competitive technology position, broadening their product line, expanding distribution relationships, reorganizing sales and marketing and driving cost reductions and efficiencies.

    We are on a path to improving the sustainable fiscal performance of the company, while they hope that the changes they bask in made to products, pricing, distribution and partnerships will drive future revenues and operating leverage, they besides took actions to align their cost structure with a reasonable revenue growth target.

    As Bob discussed earlier, the implementation of the Commvault forward initiatives resulted in near-term disruption that did not allow us to achieve their Q2 and near-term topline objectives. They are besides conservatively planning for modest revenue growth in Q3 and Q4. They hope third quarter total revenue to subsist approximately $181 million and fourth quarter revenue of approximately $189 million, resulting in total FY '19 revenues of approximately $715 million.

    These expectations are based on Q3 and Q4 software revenue of approximately $82 million and $86.5 million respectively. If they achieve their revenue outlook, they will continue to perceive margin expansion and stalwart year-over-year earnings growth based on the cost-cutting initiatives they began in early fiscal 2019.

    We now hope the Q3 EBIT margin percentage to subsist approximately 15% and the replete year FY '19 EBIT margin percentage to subsist approximately 14.7%, which is a 380 basis point improvement over the prior year.

    While their strategic fundamentals are stalwart and their ability to execute has improved, they still puss critical challenges. It is valuable to note that Commvault forward is a major transformation and restructuring effort. They are making fundamental changes to the business, which carries risk, tide to disruption and execution. While they believe that the majority of the elements of Commvault forward are in place, there is a unavoidable element of transformational risk associated with the execution of such initiatives, particularly in the near term.

    Despite these risks, they are already seeing improvements across numerous KPIs and October order volume is tracking well. Secondly, as they bask in discussed for many quarters, they are currently reliant upon a constant inflow of big six and seven-figure deals, which Come with additional risks due to their complexity and timing.

    While they besides necessity to help their nearby rates on these deals, big deal closure rates will likely remain lumpy, particularly in the near term. And lastly, while they are cheerful with the progress they are making with subscription pricing models, the transition drives a headwind to near-term license revenue growth.

    This transition will continue to bask in a dampening effect on revenue, but they believe will ultimately result in a higher lifetime value. As previously stated, fiscal '19 will subsist impacted by the near-term disruption of the changes they implemented that as allotment of their Commvault forward initiatives.

    As they enter fiscal '20, their goal is to capitalize on these changes and start to realize leverage from their distribution model as well as the operational efficiencies they identified and implemented in fiscal 2019.

    Turning to the next slide, you can perceive the detail of their multi-year revenue and operating margin targets. Their fiscal '20 objective is to grow revenue by at least 9% while achieving 20% plus operating margins. Their fiscal '21 target is to continue driving operating leverage and obtain 25%-plus operating margins.

    Our continued transition to more repeatable revenue will besides subsist a key component of their improved fiscal performance. As you can perceive on glide 21, their target is to achieve 80% repeatable revenue in fiscal '21.

    Given their transition to subscription software licensing began in fiscal '18, fiscal '21 represents the first opportunity for Commvault to significantly profit from renewals of existing subscription customers. As they continue driving repeatable revenue, they will focus on maximizing the value of subscription and utility annual shrink value.

    As previously discussed, their current ACV is approximately $76 million. Their goal is to achieve approximately $240 million of subscription and utility annual shrink value by the stop of fiscal '21. The $240 million goal is approximately eight times the ACV they stated with when they began their lope to subscription based pricing.

    In fiscal 2019, we've been focused on targeting areas of cost savings, such as reducing headcount by approximately 7% since the start of the year and setting the foundation for Commvault Advance.

    One of the core principles of forward is to drive distribution levers through a focus on their alliances and partnerships. If they are successful, this will accelerate operating margin expansion and reduce their sales and marketing expense as a percentage of revenue.

    As you can perceive on this slide, their goal is to reduce sales and marketing expense from 53% of revenue in fiscal 2018 to 40% in fiscal '21.

    Let me now shift gears to their equipoise sheet and cash flows. As of September 30, their cash and short-term investments equipoise was approximately $484 million. During the quarter, they repatriated $67 million of international cash back to the US and reduced the amount of cash held in curious locations from $197 million as of June 30 to $130 million as of September 30.

    Our remaining international cash equipoise is spread across over 35 countries, while their goal is to continue to recrudesce as much cash as feasible back to the U.S., they may not subsist able to carry out so in an economically efficient manner or may subsist limited by curious laws and regulations.

    However, they carry out believe that steps they are taking will result in the vast majority of future net cash tide to subsist concentrated in the US.

    Free cash flow, which they define as cash tide from operations less capital expenditures was approximately $17.3 million, which was up 2X, over the prior year period. As of September 30, 2018, their deferred revenue equipoise was approximately $316 million, which is an augment of 7% over the prior year period. Nearly entire of their deferred revenue is services revenue that has been invoiced to customers.

    Lastly, let me update you on their share repurchases. During fiscal 2019, which includes transactions through yesterday, they bask in repurchased approximately $47 million or approximately 707,000 shares of their common stock at an middling cost of $66.33 per share.

    As disclosed in their earnings release issued earlier this morning, their Board of Directors has recently increased the total amount available for share repurchases to $200 million and extended the program for another year through March 2020.

    That concludes my prepared remarks and I will now gyrate the convene back over to Bob. Bob?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Thank you, Brian. I would dote to disburse a few minutes talking about Commvault fade and the unusual products they announced during the show. They hosted their Annual Commvault fade User Conference earlier this month in Nashville. Registration exceeded final year's total with approximately 2,200 customers, prospects and partners in attendance.

    We announced a number of unusual products and services including an exciting unusual course for customers to interface with their software called Commvault Command Center, unusual backup and recovery as a service offerings and further expanded their portfolio of appliance offerings.

    We raised the industry benchmark for software interaction and data management with the announcement of the Commvault Command Center, which provides customers with a single console for managing Commvault's complete portfolio of products across an entire enterprise on premise, cloud and stop point infrastructures.

    The Command seat is enhanced with the power of artificial intelligence and machine learning to provide easier to understand dynamic dashboard views of their customers' environments, much more comprehensive real-time reporting and unique learning capabilities, including the ability to bewitch corrective actions.

    Broad-based security enables IT, Admin and stop users to bask in their own easily customizable dashboards. The Command seat can subsist deployed on premise or in the cloud and is available now.

    We announced a unusual backup and recovery as a service offering to deliver Commvault's powerful simplicity for customers wishing to consume backup and recovery necessity as a service. They besides announced two other backup services for virtual machines on AWS and Azure, and a backup service for native cloud application such as Microsoft Office 365 and sales force.

    These solutions will subsist available within cloud marketplaces for ease of acquisition and deployment. Customers can purchase the services as a Pay As You fade license or as a fixed term subscription. They besides expanded the company's family of appliances with addition of two unusual appliances. The unusual appliances expand their offerings into a family of small, medium and big appliances that enable their customers to cost effectively scale from 10 terabytes to more than a petabyte or 10s of petabytes.

    The unusual larger appliance is targeted at managed service providers and big enterprises featuring stellar technology with their Commvault Hyperscale software. The petite offering takes a replete power of Commvault complete backup recovery into an appliance offering faultless for remote office and arm offices.

    All of their appliances can subsist used to seamlessly backup data on-premise or lope it directly to the cloud. Commvault user cloud resources natively, which has cost, performance advantages versus competitive offerings, which require the customer to install an instance of their appliance in the cloud.

    During the expose Al and I besides delivered a keynote presentation that outlined unusual and exciting products and fresh ideas that meet today's unique data management challenges and opportunities for three main messages.

    One Commvault complete backup and recovery continues to set the unusual industry benchmark for what it means to subsist complete and backup and recovery solutions. Advances in machine learning and AI will create a sales driving dote sustain that redefines how customers engage with their software. This is made feasible through the capabilities of the unusual Commvault Command Center.

    Secondly, the simple SmartCloud highlighting Commvault's ability to deliver a plight of the cloud faster to automated and orchestrated research management and control, we're now helping customers deliver on a multi-cloud environment as a apt extension of a modern on-premise data center.

    And lastly, they continue to help customers' information of their data with a holistic enterprise wide view and they are delivering applications that allow them to act upon that knowledge. This comes to life through Commvault Activate.

    Innovation remains the hallmark behind Commvault's product vision and leadership. Commvault is applying leading edge AI and machine learning to deliver outcomes that customers value most. Commvault challenges the industry to hope more as they deliver truly complete backup and recovery.

    Before they wrap up, let me briefly update you on the search process for a unusual CEO. As stated previously, the CEO Search Committee of their Board remains -- retained a leading search from May and has been identifying and actively interviewing candidates. The search process is well under course and the search committee is making ample progress.

    In closing, under Commvault forward they made significant progress in the quarter, establishing a stronger foundation to better enable us to achieve more improved and predictable fiscal performance both in the short and long-term. While they are not satisfied with their Q2 revenue performance, they are seeing stalwart early momentum from their Commvault forward initiatives and are excited about their accelerating subscription revenue.

    We bask in made comprehensive operational changes over the final several months and these changes are now behind us. They are now focused on ongoing forward execution. The actions they took to align their cost structure at the dawn of the year were evidenced in the 61% year-over-year EBIT improvement. Now that the foundation of Commvault forward is in place, they believe they will perceive increased momentum as their channel strategy, go-to-market initiatives and alliance partnerships start to expose positive traction.

    As I mentioned earlier, they are entering the second half of the year with a much stronger funnel. We'll subsist focusing their efforts on executing the key elements of Commvault forward where they already bask in a solid already -- where they already bask in solid proof points of success.

    Our objective is to construct confident they achieve their near-term fiscal objectives while solidifying their Commvault forward Foundation for FY '20. Their immediate focus is to achieve their Q3 revenue and earnings forecasts.

    Now let me gyrate the convene back to Mike. Mike?

    Michael Picariello -- MD of Americas Research

    Operator, can you delight open the line for questions?

    Questions and Answers:


    (Operator Instructions) Their first question comes from the line of Joel Fishbein of BTIG. Your line is now open.

    Joel Fishbein -- BTIG, LLC -- Analyst

    Good morning. I bask in one for Bob and one for Brian. I'll start with Brian. Hey Brian, thanks for the detail on the lope to the subscription model. What I'm just trying to understand is with a lot of these companies, you start this -- you perceive deferred revenue grow prerogative as you sign these deals, particularly larger ones and I'm just trying to understand why we're not seeing an uptick in deferred revenue with some of these subscription deals? And then I'll wait -- just query Bob the next question.

    Brian Carolan -- Vice President and Chief fiscal Officer

    Sure. ample Morning, Joel. So, as I described in the call, we're a bit unique when it comes to the application of ASC 606. When they sell their subscription software and license arrangements, they actually recognize that revenue upfront in the term of sale on the software portion.

    The only thing that goes into deferred revenue potentially would subsist the maintenance that's attached to that, just dote a household arrangement under perpetual model. It's the identical ilk of carve out for maintenance and uphold that gets deferred over the contractual term.

    So you don't perceive it expose up in deferred. It actually shows up in term revenue that's been recognized. That's why we're going to try to point to other metrics such as ACV and repeatable revenue and try to give you ample visibility into the traction that we're making on more repeatable revenue models.

    Joel Fishbein -- BTIG, LLC -- Analyst

    Would you bask in a backlog number then, dote in terms of total shrink backlog or is that not a metric that might subsist meaningful?

    Brian Carolan -- Vice President and Chief fiscal Officer

    That's really what, it's almost really, if you search for at the ACV is a proxy for what backlog would subsist essentially.

    Joel Fishbein -- BTIG, LLC -- Analyst

    Okay. Great. And then Bob just for you, what gives you self-possession that you can grow 9% next year? Obviously you're making a lot of changes prerogative now and I'm just -- what's giving you the confidence? Is it something that you're seeing out there specifically that you can point to?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yes Joel, clearly we're seeing a substantial, I denote substantial uptick in funnel tide in the enterprise just started to change. They saw it in the spring and it really accelerated through the summer in spite of disruption and continued as they entered Q3 in very big deals into the funnel and those deals were tied a trend in the industry for big enterprises to consolidate entire their data management functions to deal with cost, cyber compliance and the cloud.

    And I believe their data management platform and the market is recognizing this, is in a class by itself in terms of delivering those capabilities. So that significant augment in big deal and tide besides gives us optimism for this current quarter and it's continued.

    And secondly, as I discussed in my remarks, they now bask in a much stronger distribution position and although that's going to bewitch a slight time to impact their earnings, we're starting to perceive that as well, so fortunately they got a massive significant upturn in their I'll convene it core enterprise commerce and besides that is besides being driven by a much stronger partner and alliance relationships in the enterprise.

    And from the midmarket standpoint, they are seeing ample traction with their appliances in Commvault Complete and unusual pricing. So the entire foundation at Commvault Complete was not try to construct changes here. That's why it goes back a pair years to construct fundamental changes in their products pricing, routes to market, alignment with those routes to market and a much more efficient cost structure.

    So internally, there's a lot of optimism underneath and I really contemplate we've done this the prerogative course although it had some attended risks as they made these massive changes final quarter.

    Joel Fishbein -- BTIG, LLC -- Analyst

    Great, thank you.


    Thank you. Their next question comes from the line of Aaron Rakers Wells Fargo. Your line is now open.

    Aaron Rakers, -- Wells Fargo -- Analyst

    Yeah, thanks for taking the questions as well. So I want to fade back to that final question and just understand the variables at play to underpin what looks to subsist a 17%-plus sequential augment in your implied software license revenue this quarter.

    I contemplate with that in mind, it would subsist helpful to understand exactly what degree of funnel pipeline growth that you've been seeing and what assumptions are you making in terms of converting those funnel opportunities into recognized revenue? I'm just trying to understand the basis for that augment conservatism sane or what you perceive to drive that plane of sequential growth?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    So the funnel growth Aaron is material and significant. I denote it's -- we're talking about a very major augment in the growth of funnel, particularly in big enterprises and particularly in the Americas and the assumptions we're making on funnel nearby what I convene reasonable and Brian can concede that question.

    So we're not putting gargantuan nearby rates on these areas of the funnel and then the other thing that goes along with this is their we've had predictive models here that are quite sophisticated and they've been quite accurate and their predictive analytics besides search for really ample relative to the guidance they just provided.

    Brian Carolan -- Vice President and Chief fiscal Officer

    Yeah, I contemplate just to follow on with Bob's point, we're using fairly typical and middling nearby rates applying that to the current quarter funnel. Again, they perceive a vigorous uptick in their enterprise deal funnel heading into this quarter, which we're pleased with. Although I did reveal that could subsist lumpy at times, we're still, we're pleased with that number in available funnel.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    I think, Aaron, you saw a lot of this and this benevolent of validates what you saw it fade since you were there and what you heard on the floor.

    Aaron Rakers, -- Wells Fargo -- Analyst

    Yeah, and just a quick follow-up, I'm just curious, I contemplate final quarter Bob, in response to your question, you said that basically 98% I contemplate was the number that the total sales favor realignment efforts bask in been completed.

    As they search for at the leverage that you're presenting to us going forward, I'm snoopy of what else is there in terms of sales realignment or for that matter, sales headcount reduction efforts that should subsist anticipated in front of us if there are any?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    I would reveal the bulk of this is behind us, but as they fade forward and bring the leadership in, which we've done, I contemplate over time they will continue to refine that model. So I contemplate there are additional benefits to subsist gained on efficiency, but those are incremental relative to what they just went through.

    Aaron Rakers, -- Wells Fargo -- Analyst

    Okay, thank you.


    Thank you. Their next question comes from the line of Jason Ader of William Blair. Your line is now open.

    Jason Ader -- William Blair -- Analyst

    Thanks. Bob, thank you for the CEO search update. I guess my question on that is, five months into when you announced it and they haven't seen any announcements yet. So I guess why is it taking so long? Is there anything you can give us some more color on that?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    I'll just construct the comment that the search committee is making very ample progress on the CEO search.

    Jason Ader -- William Blair -- Analyst

    Okay. honest enough. And then over the final few years, we've seen a series of restructuring and pricing and packaging changes. I know that you guys are optimistic on the things that you're implementing prerogative now, but why should investors believe that this time is going to subsist different?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Well, the only validation is for us to hit the numbers. That's the only true validation. entire I can reveal is the funnel growth and the types of deals we're seeing now are in a different category than we've seen in their history. So a lot of the deals -- there is a lot of deals that are in the multiples of millions of dollars and it's both mainly in the Americas and AMEA, primary in multiple million this is convene it $3 million, $4 million, $5 million, $6 million benevolent of deals and they're accelerating.

    So we've got that, that's true and these deals are well scrubbed and they're poignant through the funnel well. In addition, we've never had the might of their product line for the bid market, where their appliances are complete and really getting their prices in line and we've eased that up with a lot more resources and focus.

    So I contemplate fundamentally, they didn't try to carry out a quick fix here. They try to really understand the market dynamics and address it.

    In addition, let me subsist clear about this, if you search for at their platform for the cloud, a true cloud platform to manage data and migrate it to the cloud and manage it in as a scale out platform and with Linux functionality, I contemplate there is a stronger platform in the industry than what they bask in here at Commvault.

    And we've been able to bewitch the next step and enhancing that platform for let's convene it multiple exabytes scale, which they anticipate will subsist in the market sometime early next fiscal year. It's not that far away. So I contemplate technically we're in a really ample position.

    I contemplate we're seeing the true traction from the consolidation taking space in the enterprise across the Board for data management functions. I contemplate cyber is a gargantuan driver of that and we've had really ample success in taking major customers and they when they recover from major cyber attacks, they had most present at their fade Conference as a ample case of that.

    Clearly, things dote GDPR compliance are playing a role of that and the cloud is becoming increasing valuable and I don't contemplate there is any platform on the planet that allows customers to natively consume the cloud and entire its aspects dote they have.

    So in spite of the changes the things they made, I contemplate the company is fundamentally in a extremely stalwart strategic position to accelerate growth and they bask in established a much more efficient cost structure to drive the bottom line.

    Jason Ader -- William Blair -- Analyst



    Thank you. Their next question comes from the line of Andrew Nowinski of Piper Jaffray. Your line is now open.

    Andrew Nowinski -- Piper Jaffray -- Analyst

    Okay. Thank you very much. ample morning. So looking at glide 21, your assumptions for repeatable revenue growth intimate growth of just 17% in fiscal '19. I contemplate that decelerates to about 16% by fiscal '21, despite the fuse continuing to increase.

    Is that factoring in expense declines or why should they hope repeatable growth to basically top out at the fiscal '19 plane for just at the start of the transition and they haven't seen an impact from renewals yet?

    Brian Carolan -- Vice President and Chief fiscal Officer

    Well, again we're trying to subsist a slight bit conservative with their guidance out there Andy. So I contemplate that we'll perceive an acceleration. By FY '21, will subsist the first meaningful year, where they perceive renewals start to happen, but they want to subsist reasonable with their expectations and so they actually perceive that happen.

    Andrew Nowinski -- Piper Jaffray -- Analyst

    Okay. honest enough. And then in Europe, if I looked at the software revenue, it actually did decline about 17% this quarter despite the GDPR tailwinds. I guess, can you just give us an update on what's going on in Europe and other competitors, such as (inaudible) any pressure on your ability to grow revenue in Europe there?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    No. The EMEA team is consistently -- met their number or beat it and final quarter they basically took the bailiwick out for about six weeks as we're going through this entire transition. So in some sense, the quarter really didn't start till the 1st of August.

    As far as they know their expectations for Q3 are for us very, very significant quarter-on-quarter growth. So I contemplate what we've stated is accurate, that you can't draw any long-term conclusion from what happened final quarter, they really believe that the majority of that was disruption.

    Andrew Nowinski -- Piper Jaffray -- Analyst

    Okay, thanks, Bob.


    Thank you. Their next question comes from the line of John DiFucci of Jefferies. Your line is now open.

    John DiFucci -- Jefferies -- Analyst

    Thank you. I bask in a question for Brian and then maybe a follow-up for Bob. So Brian thanks again for entire that information on the transition of this subscription model, that's entire really helpful. But when they search for at that -- the utility revenue, I contemplate that's one piece that's going to cause some questions and I just want to construct confident they understand that.

    Can you uncover us about what the size or the percentage or the revenue of that revenue is dote on an annual basis and if you can, what the annual retention of that utility revenue is even if it's on a customer basis that they can sort of ascertain how repeatable that is?

    Brian Carolan -- Vice President and Chief fiscal Officer

    Sure. So the utility portion of the subscription revenue or repeatable revenue is actually -- it's relatively petite in the stately scheme of the total. I would reveal that their retention rate is extremely lofty on that.

    This is often a pay-as-you-go model based on usage. It's a quite sticky revenue stream that repeats typically every quarter and what we're trying to carry out with the ACV metric is trying to annualize that as well, because it is on a dash rate that is sort of predictable for us. And it's not -- the majority of the revenue is not even nearby to that. They didn't reveal what's the number is, but it is the smaller portion of that total.

    John DiFucci -- Jefferies -- Analyst

    Okay. Well that's a start. So thanks, it's small, but it does bask in a pretty lofty retention rates. So that's ample to hear. Okay. And Bob listen, so just to fade along some of the questioning here, Commvault always had stalwart vision and products, sometimes getting to market has been a challenge, getting the products to market, but both -- both of those points, it's always been stalwart vision in compelling and stop product, but go-to-market execution seems to bask in been spotty over history.

    And you said this in this quarter, the disruption was greater than you expected and so we've heard dote in the bailiwick of dote higher than household voluntary sales personnel attrition and it's -- so that seems dote the disruption is going to subsist -- it's going to persist here and I guess how carry out you recover from that?

    I know you're trying to shift more to partners, but that besides increases some risk to any benevolent of shift those right. So I guess to some of those questions around dote how carry out you feel confident about 9% growth next year, is it the fact that you just don't necessity sales as much as you did before with the shift to more of a product or partner-driven go-to-market strategy, because even in that case I don't know, it just seem to subsist pretty valuable here.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Now, let's subsist clear. Sales is still really critical and the astound if you want to convene it a astound is we've always been stalwart in the enterprise and it drove a lot of their growth in their early years.

    And the enterprise for a pair of years shifted to buying point products, the next shiny box or whatever and that began shifting probably about six months ago, maybe a slight longer so a consolidated holistic play in the enterprise and that's really accelerated and those -- that entire series of, stand if I just went through on consolidation, cost, cyber compliance and I'll just mention offline here that we've automated so much of the processes within data management now.

    So we've taken a lead in automation both on premise and the cloud. So you've got this massive shift in the enterprise that is more holistic enterprisewide solutions that requires a really stalwart enterprise sales favor and I mentioned earlier, when they started Advance, but they wanted more leverage with distribution partners in the enterprise and now we've got the combination of those two.

    And then the mid-market, even though they shifted more resources to partners that's a process that is not going to occur in a day. It is happening as they speak, we're seeing in, but that engine will gain momentum quarter-on-quarter. So the concede is sales for their commerce is still extremely valuable and yes, there's no doubt when you construct major changes dote this and these are fundamental. They didn't try to troupe aid it and they did it quickly.

    You're going to perceive some disruption because it's not only structure that they changed. Its comp and a lot of other things and pricing. So I believe the pluses well outweigh the risks on the bottom, but I don't want to minimize that they won't perceive some attrition, disruption as they manage their course through that. But I contemplate it will subsist manageable, because they got so many strengths now for their salespeople to hit their quotas and construct a lot of money.

    John DiFucci -- Jefferies -- Analyst

    So it sounds dote sales or voluntary sales attrition from what we're hearing in the field, it sounds dote it's accurate, but there's so many things going on here that you contemplate you'd subsist able to offset that?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yes, and search for some of that goes on when you construct major change.

    John DiFucci -- Jefferies -- Analyst

    Yeah, OK. Well thank you guys.


    Thank you. Their next question comes from the line of Alex Kurtz of KeyBanc Capital Markets.Your line is now open.

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

    Yeah, thanks guys. ample morning. I just want to follow up on that final question, Bob, are you taking any specific actions with your top reps to incentivize them, specifically to remain on for the next pair of quarters as you fade through this transition, is there any specific actions you're taking? I know there is a lot of organizational changes here. I was wondering if there was a program around the sales favor around retention.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    The concede is just in general they are taking specific action in specific cases and trying to construct it easier for their sales teams to deserve their quotas. There is not a general corporatewide action. There are specific actions in the field.

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

    Okay. And Bob just competitively in the US, especially I know there's been a lot of discussion final pair of earnings calls around a pair of emerging platforms that are competing in the channel, just any benevolent of update in what you're seeing quarter-to-date, year-to-date, any changes sequentially?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Well, in the enterprise, we're seeing a significant resurgence against entire the competitors, legacy and the unusual competitors in the midmarket and certain, I'll convene lower scale deployment enterprise. They clearly perceive the unusual converged guys in the market and they bask in a lot of momentum, but now you've got a Commvault with a replete product line and much stronger distribution, to deal with that I can say.

    When they collect into head-to-head competition now when they are there, they bask in a really lofty win rate, because it's just the breadth and depth of what we're doing in terms of -- and having products that are not only competitive, what they have, but fade course beyond their capability, particularly in their ability to lope data into the cloud to manage it in the cloud and manage it back for a data protection that entire the automated and orchestration capabilities they bask in for debt test DRs and a class by itself now.

    So I contemplate we're in a really solid position technically and I contemplate we've done a lot to fundamentally change their -- and strengthen their go-to-market. So I contemplate internally they feel really ample about entire those although it was painful in the near term.

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

    Understood. And Brian, just final question for me, I contemplate historically you've called out the subscription headwind, but the dollars, I contemplate you've benevolent of projected what the delta would bask in been. Sorry if I missed it this earnings call, but bask in you called that out yet?

    Brian Carolan -- Vice President and Chief fiscal Officer

    No, they didn't set a number on that. I'd reveal it's fairly consistent with what they did in prior quarters. It's probably in that $3 million to $4 million range, the headwind.

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

    Great. Okay. entire right, thanks guys.


    Thank you. Their next question comes from the line of Eric Martinuzzi of Lake Street. Your line is now open.

    Eric Martinuzzi -- Lake Street -- Analyst

    Yeah, my question has to carry out with pair of your key channel partners, just wondering sometimes I've grown num to the HPE, the annual HPE announcement or the annual NetApp announcement. Obviously given the shift to channel dependency here and away from the direct side, what bask in they done differently this year versus past years?

    I feel dote you've always had products that play well with them, but what are the one or two significant changes with those two key partners?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    I'll bewitch HP and I'll let Al bewitch the NerApp. The inequity is that they bask in what I convene fully integrated online plays with HP. So when they fade to market, they fade to market with a solution that includes Commvault as far as solution and that's brand new.

    That agreement was completely unusual agreement that was executed this summer and basically went into market over the final pair of months. They bask in significant deals in the funnel with them that are true that will most likely nearby this quarter.

    In addition to that, for example, HB had 30 people at their partner conference this year and they've had of storage that's working with us contour globally, entire their major accounts with Commvault, so that's really ample on the ground integration with HP. So they set the resources, they bask in the aligned plays. We've got pricing. So they got I'd reveal extremely ample alignment with them and they're putting a lot of resource behind their partnership.

    So I'm really confident about benevolent of where they are with them and we're besides seeing it in their funnel growth. So it's radically different from anything we've had in the past with HP and its brand unusual and I'll let Al bewitch the NerApp.

    Al Bunte -- COO

    Yeah, and I contemplate NetApp is similar to what Bob just said on HPE. Lots of programs, lots of campaigns, lots of sales initiatives, but I contemplate overall, one that Bob didn't talk about, it's applicable across entire of their major particularly storage or infrastructure partners is their ability to deal with software-defined secondary storage.

    Notably came out with their HyperScale both Appliance and reference architecture programs and I think, Eric and you would know this, we're seeing a major, major battleground developing for secondary storage. It's entire predicted that there's going to subsist a huge amount of movement in this direction.

    We besides contemplate in the current market that there is lot of vulnerability, to older technologies, expensive technologies and again the modern scale-out HyperScale environment is extremely compelling. So they perceive a number of again what I'd convene historic storage suppliers wanting to participate in this benevolent of trend.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yean and Al just made a really ample point and HyperScale in HP's case, they drive that on their Apollo, whether Apollo servers. So it's not just appliances, it's on their own server infrastructure for secondary storage and concurrent with that, there is no doubt that their platform and its ability to seamlessly manage data on premise and in the cloud across an enterprise is a major strategic odds versus anybody out there.

    Eric Martinuzzi -- Lake Street -- Analyst

    Okay. Because that's -- they don't want for people looking out your competitors besides bask in programs with them. So I'm fortunate to hear there is higher plane of executive commitment for you guys.

    Brian Carolan -- Vice President and Chief fiscal Officer

    Higher plane of integration.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    And to subsist clear in HPE case and they carry out bask in a competitor, in the enterprise they're focused with Commvault and the enterprise. The HPE play is mainly a big enterprise -- global big enterprise play.

    Eric Martinuzzi -- Lake Street -- Analyst

    Okay. Thank you.


    Thank you. And I'm showing no further questions at this time. Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program. You may entire disconnect. Everyone bask in a noteworthy day.

    Duration: 74 minutes

    Call participants:

    Michael Picariello -- MD of Americas Research

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Brian Carolan -- Vice President and Chief fiscal Officer

    Joel Fishbein -- BTIG, LLC -- Analyst

    Aaron Rakers, -- Wells Fargo -- Analyst

    Jason Ader -- William Blair -- Analyst

    Andrew Nowinski -- Piper Jaffray -- Analyst

    John DiFucci -- Jefferies -- Analyst

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

    Eric Martinuzzi -- Lake Street -- Analyst

    Al Bunte -- COO

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