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C2010-658 exam Dumps Source : Fundamentals of Applying SmartCloud Applicaton Performa

Test Code : C2010-658
Test designation : Fundamentals of Applying SmartCloud Applicaton Performa
Vendor designation : IBM
: 69 existent Questions

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IBM IBM Fundamentals of Applying

IBM Says Blockchain Can power 'Open Scientific research' in original Patent submitting | killexams.com existent Questions and Pass4sure dumps

A patent utility posted Thursday claims the manner of conducting scientific research can odds from the blockchain.

Led by pass of a crew at IBM's Watson research middle, the patent software gifts a vision for dynamic collaboration – one the location researchers can music their travail throughout institutional borders. it's a further non-economic utility of the allotted-ledger technology, which IBM has championed in fresh months.

This latest patent will besides breathe notion of as an difficult application changelog, however for science. Or, as the submitting puts it, a materiel that gives "a tamper resistant log of scientific research."

From the filing:

"The blockchain device can contour a blockchain representing a research challenge, in which the blockchain comprises a first block of research statistics and a second block of analysis records representing a log of an analysis performed on the research information. summary blocks and correction blocks can even breathe introduced to the blockchain representing the publish analysis of the analysis consequences."

The software – titled "Blockchain for Open Scientific analysis" – became first filed with the U.S. Patent and Trademark office in December 2017. IBM researchers Jae-wook Ahn, Maria Chang, Patrick Watson and Ravindranath Kokku are listed as inventors.

based on the patent, "currently, there are limited systems that allow for sharing suggestions about scientific research and showing pellucid records collection and analysis steps. platforms that finish exist, exigency the requisite controls and mechanisms to allow for trustworthy information, as there are few options for guaranteeing that facts may breathe resistant to amendment."

IBM is never the simplest group working to rehearse distributed ledger know-how to the scientific realm. A Berlin-primarily based account tank, Blockchain for Science, held its first overseas conference earlier this week.

The blockchain-flavored patent is considered one of many for large Blue. in line with statistics posted in September, IBM become behind handiest chinese language internet massive Alibaba in the variety of blockchain-connected patent filings.

IBM photograph by pass of Shutterstock

The leader in blockchain information, CoinDesk is a media outlet that strives for the highest journalistic requirements and abides with the aid of a strict set of editorial guidelines. CoinDesk is an independent working subsidiary of Digital forex neighborhood, which invests in cryptocurrencies and blockchain startups.


IBM Is happening - however may besides breathe Saved | killexams.com existent Questions and Pass4sure dumps

Image result for ibm

Introduction

In September, I wrote a piece of writing that chronicled the sluggish decline of exotic enterprise Machines (IBM). The article concentrated on the enterprise’s declining revenues and margins and the fallacy that is Watson that has been overhyped and over-marketed. given that the article turned into published, issues believe gotten worse for the business. Its inventory expense has declined from $145 to the existing $123.

consequently, its market valuation has declined from greater than $130 billion to the existing $112 billion. This valuation makes IBM reasonably valued in comparison to different expertise organizations. In IBM, buyers are paying 19X trailing revenue and 8X forward profits. here's enormously reduce than what investors are deciding to buy other ancient tech agencies infatuation Oracle (ORCL), Microsoft (MSFT), Apple (AAPL), and Cisco (CSCO) which believe a touchstone forward PE ratio of 15. similarly, IBM has a ahead PS ratio of 1.forty one, which is lower than the ordinary of these corporations of four.sixty five.

all through IBM’s decline, many investors – including Warren Buffet – believe invested in the enterprise, hoping that it'll achieve a turnaround. they believe every bit of been dissatisfied because the company’s inventory has persevered to discern lessen lows. brief dealers nevertheless were rewarded because the inventory has misplaced 17% of its value this yr. The short hobby has expanded from 14 million in January to the latest 21 million.

in my view, IBM will proceed to underperform since it lacks a ferment so that it will bewitch the inventory bigger. This evaluation might breathe a comply with as much as the previous article and should highlight more complications that the massive blue is facing and how it can breathe saved.

Elephant within the Room: RHT

When gargantuan corporations are in decline, they believe a addiction of creating poverty-stricken selections mainly when it comes to acquisitions. Two examples of this are the determination through Sears Holdings (SHLD) to purchase ok-Mart and the determination via everyday electric (GE) to acquire Baker Hughes (BHGE). regrettably, IBM determined to follow the footsteps of these agencies.

Two weeks in the past, the traffic introduced that it might disburse $34 billion to acquire red Hat (RHT). IBM would acquire RHT for $190, which changed into a sixty three% top class. In its announcement, IBM’s CEO mentioned that:

The acquisition of purple Hat is a game-changer. It alterations every tiny thing in regards to the cloud market. BM will turn into the world's #1 hybrid cloud company, offering corporations the handiest open cloud respond that will release the total expense of the cloud for his or her organizations

This announcement jogged my recollection of what GE’s Jeff Immelt famous when he introduced the acquisition of Baker Hughes.

BHGE is an traffic chief positioned to convey in any economic atmosphere and succor their purchasers in using productiveness. This deal capitalizes on the existing cycle in oil and gasoline while additionally strengthening their location for the market recuperation. As they depart ahead, the original fullstream offering speeds up their potential to extend a digital framework to shoppers whereas delivering world-category technical innovation and service execution. They appear forward to continuing a seamless integration for their valued clientele.

what is diverse in the two statements is that Immelt became perquisite about the scale of Baker Hughes. on the other hand, Virginia Rometty’s statement become demonstrably wrong. First, within the press conference, IBM used the note cloud forty three instances and according to Rometty, the deal will back IBM bewitch an improved market participate in the cloud business. despite the fact, a stare at crimson Hat’s revenues suggests a unique picture. Most of its revenues Come from infrastructure-connected choices while the next earnings comes from software construction and different emerging technology choices. In its 10K, it describes the subscription offerings as: salary generated from crimson Hat commercial enterprise Linux and connected technologies corresponding to pink Hat satellite and purple Hat Virtualizations.

supply: pink Hat

This factor became additionally mentioned by using Barron’s article that interviewed an analyst from Bernstein who famous that:

more than half of red Hat’s income become generated by means of its unconcerned on-premise server working-device business, which isn’t at once tied to the cloud and has a slowing enlarge price.

extra, while Amazon’s (AMZN) cloud grew by using 46% in 2017, red Hat’s cloud-related revenues rose by means of just 14%. at the identical time, the annual revenues of pink Hat are only below $3 billion with the web salary being below $300 million. Worse, IBM is paying 55 instances RHT’s estimated earnings, which is a hefty valuation since that many companies within the sector are bought at four.5 instances ahead sales.

hence, every bit of this doesn't justify the hefty $34 billion. also, here is now not the primary time that IBM has overpaid for its cloud features. In 2013, when it introduced the acquisition of Softlayer, it declared that:

As corporations add public cloud capabilities to their on-premise IT methods, they exigency business-grade reliability, security and administration. To address this possibility, IBM has constructed a portfolio of high-cost deepest, public and hybrid cloud choices, as well as software-as-a-service company solutions. With SoftLayer, IBM will accelerate the construct-out of their public cloud infrastructure to give purchasers the broadest option of cloud choices to pressure company innovation.

Even with the SoftLayer acquisition, IBM has lagged other cloud computing agencies. it's quantity 5 in the traffic in the back of Amazon, Microsoft, Alibaba (BABA), and Google (GOOG). In public cloud, it has a market participate of 6%, which is miniscule in comparison to Amazon’s 46% market share.

in short, IBM is following the very fashion adopted by using well-known electric powered when it received Baker Hughes or the disastrous $10.3 billion acquisition of Autonomy with the aid of HP in 2011.

A silver lining in every bit of this is that there is a possibility that the deal will not shut. in the press remark, IBM talked about that it's going to pay $190 for the enterprise. As of this writing, the enterprise is buying and selling at $172, which is 10% reduce than the proposed $one hundred ninety. In merger arbitrage, here is a token that a very righteous number of investors don’t account the deal will close.

next Elephant within the Room: Debt

The purple Hat acquisition is the primary among many challenges I didn't tackle in my archaic article. This deal besides the fact that children presents IBM with a stability sheet difficulty. To finance the all-money transaction, IBM will should boost further debt.

before the deal is closed, IBM has a debt to fairness ratio of two.372, which is larger than that of the peers outlined above. Microsoft, Oracle, Apple, and Cisco believe a debt to GDP ratio of 0.8867, 1.527, 1.068, and zero.fifty nine respectively. Their universal is 1.01. hence, this will aggravate when the enterprise concerns greater debt to finance the acquisition.

this may now not breathe an issue for a corporation this is growing to be. regrettably, as I wrote earlier than, the business’s enlarge has slowed, revenues are declining, and the Big bets on Watson don't appear to breathe figuring out. because it has been noted, many Watson clients are thinking of cutting down.

As you bewitch into account, IBM beneath Rometty has develop into a Big monetary engineering business. To enrich self credence in the market, the enterprise has borrowed heavily to finance buybacks. in the past ten years, the traffic has spent greater than $40 billion in participate buybacks. The chart under suggests the decreasing participate counts for the enterprise in the past ten years.

compare this with the enlarge in long-term debt as shown below.

In different phrases, the deal through IBM to acquire purple Hat will dramatically enhance its debt even though RHT’s free cash stream is increasing. this can seemingly result in decreased dividends. actually, because of the acquisition, the enterprise has announced that it's going to halt the buybacks in 2020. hence, it will halt buybacks to finance a deal I faith will now not back it in future. pair every bit of this with the hefty $18 billion pension liability which is higher than that of comparable organizations.

IBM can besides breathe Saved

listed here, I actually believe overlooked different considerations that I raised in the outdated article. These considerations encompass the slowing boom, thinning margins, and the expanded competitors from businesses infatuation Alibaba, Amazon, and Google.

while issues stare darkish for IBM, I agree with that it may besides breathe saved. other historical expertise businesses believe every bit of been in a similar situation infatuation IBM and recovered. before Satya Nadella, Microsoft changed into death. in a similar way, earlier than Steve Jobs, Apple changed into loss of life.

a considerable region for IBM to birth is to respect that it is in quandary. After this, it can birth by pass of establishing the explanation for the issue. I agree with that the judgement behind IBM’s problems changed into its lateness within the cloud computing business. This extend allowed Amazon and different groups to enter the traffic and acquire shoppers. In cloud, the churn expense is so low that after a company acquires a consumer, it may possibly breathe confident that the company will not defect to its competitors.

subsequent, as with different tech organizations which believe recovered, IBM should noiseless believe altering its administration. The fact is that Verginia Rometty has no longer been a superior CEO. beneath her management, the enterprise’s stock has declined by using more than 30% as proven beneath. at the very time, she has been paid greater than $120 million. If Rometty has now not changed the enterprise in 6+ years, what makes the board assured that she will breathe able to turn it round in future?

subsequent, as discussed above, IBM may noiseless account giving up the acquisition of crimson Hat. whereas this can attract a hefty divorce bill, it can breathe value than the cataclysm that awaits if the deal goes on. recollect that 83% of every bit of M&A offers fail and there's no judgement why this will breathe triumphant. To breathe clear, IBM will exigency to bear acquisitions to compete with Amazon. actually, with the $34 billion, the company could bear option investments. for example, it might disburse about $3 billion to acquire a corporation infatuation box (box) that counts sixty one% of Fortune 500 organizations as shoppers.

superior, it could actually utilize its ventures arm to attach money into minuscule startups in a similar mode that Google has achieved it with Google Ventures. As proven below, IBM Ventures has not made any significant investments in the fresh previous.

source: Crunchbase

ultimately, IBM should noiseless faith divesting its world enterprise options (GBS) section. here is a section that provides consulting, application management, and global system services. In 2017, the phase generated $sixteen.38 billion in revenues, which become reduce than $16.7 billion in 2016. The phase’s margins are the least among the many different segments.

The shameful margins are 25%. here is practically similar to different companies in the sector infatuation Accenture (CAN), Wipro (WIT), and Cognizant technologies (CTSH) which believe shameful margins of 30%, 30%, and 39%. hence, on a sum-of ingredients groundwork, this section lonely can besides breathe expense greater than $30 billion if you occur to compare it with its friends.

it is estimated that GBS has more than 120K personnel. for this reason, divesting the segment will succor the company slash back the headcount and enrich margins.

last thoughts

IBM’s inventory has continued to declare no after the announcement of the pink Hat acquisition. As I actually believe explained, the traffic continues to puss main headwinds that will doubtless bewitch it reduce. despite the fact, I account that the administrators can serve the traffic neatly through getting out of the RHT deal and discovering greater acquisition targets, replacing the CEO, investing in early stage cloud agencies through IBM Ventures arm, and diversifying the world enterprise functions arm.

Disclosure: i'm/we are lengthy AAPL, container.

I wrote this text myself, and it expresses my own opinions. i'm not receiving compensation for it (other than from in the hunt for Alpha). I haven't any enterprise relationship with any traffic whose inventory is mentioned listed here.


How IBM and purple Hat Will believe an upshot on Your Cloud mode | killexams.com existent Questions and Pass4sure dumps

Barring a heavy-passed approach to the fresh acquisition, IBM and crimson Hat can finish some fantastic things in the market.

IBM is a long mode from making actual machines. That fragment of the enterprise went with Lenovo several years in the past. So, what has been their focal point ever for the judgement that? utility and features. And, amongst those software pieces and functions has been the cloud.

except nowadays, you can besides believe heard tiny about IBM’s cloud presence. youngsters i can guarantee you it’s there, it turned into truly struggling to compete with the likes of AWS, Azure, and even GCP. Now, with predictions infatuation those from Gartner stating that through 2020, 90% of companies will adopt hybrid infrastructure administration capabilities and that the market in widely wide-spread can breathe worth $240 billion or more – this changed into nearly as righteous a time as any to basically bewitch a dive into the cloud administration and start ecosystem.

Image: Shutterstock

graphic: Shutterstock

And IBM in fact took the plunge. truly, this turned into the largest acquisition or deal that IBM has ever gambled on during its 107-yr existence. In understanding the technology they simply took beneath their massive Blue wings, it might truly repay.

What this potential for IBM, crimson Hat, and your cloud

Let’s mount with IBM. It’s been a difficult ride for this company. once commonplace for constant boom and innovation, IBM has been struggling when it comes to keeping up with predominant industry players. This stagnation changed into original and definitely uncomfortable for IBM’ers and fanatics alike. So, what to do? buy a powerful, multinational, open-supply utility company that’s been establishing some main solutions. This contains pink Hat enterprise Linux, middleware respond JBoss, CloudForms, and the very potent cloud and container administration system – OpenShift.

For IBM, this talent opening the aperture into a quick-paced and starting to breathe hybrid cloud market. Most of all, this capability focused on enterprise valued clientele and arming them with main tools around cloud management. in reality, using one of the business’s gold touchstone container management solutions (OpenShift) will supply IBM consumers the sorts of materiel and features to approach digital transformation efforts in addition to total technology modernization shifts.

The total proposal of "monolith to microservices" can breathe encompassed by using this IBM+red Hat deal. technology infatuation OpenShift will give IBM a leading Kubernetes administration platform in a position to offering precise-world cloud-native solutions. This isn’t just IBM paperware to any extent further, with purple Hat, the ammunition is completely there. coalesce this with an even bigger portfolio of middleware and powerful cloud-in a position (and validated) developer tools and you've got a extremely potent account for hybrid cloud deployment and management.

“With IBM’s recent stream to containerize its middleware, nowadays’s landmark partnership between IBM and purple Hat provides consumers with extra alternative and suppleness. Their unconcerned vision for hybrid cloud the utilize of container architectures allows for millions of organisations – from banks, to airlines, to government agencies - to access leading know-how from each companies while not having to bear a option from public and personal cloud.”

- Arvind Krishna, Senior vice president, IBM Hybrid Cloud

For IBM, purple Hat (and OpenShift) is an immediate gateway into a developer group that’s actually designing the architecture for traffic agencies and their hybrid cloud initiatives. Did IBM pay a premium for red Hat? You stronger account it. turned into it value it? Time will inform. Coming from in the back of is rarely handy, however this is an excellent pass to location a rapid engine to your cloud enterprise.

For red Hat, there are pretty huge advantages, too. apart from the huge quantities of elements and scale capabilities, crimson Hat is entrenching itself even extra into an enterprise market that’s primed and capable for the cloud. Now, assume about leveraging pink Hat materiel to believe an upshot on every bit of of those remarkable IBM clients which believe been itching for an IBM-competent hybrid cloud structure.

“by means of extending their long-standing collaboration with IBM, we’re bringing together two main traffic utility structures in crimson Hat OpenShift Container Platform and IBM Cloud private and including the energy of IBM’s software and cloud options.”

- Paul Cormier, President, products and applied sciences, crimson Hat

based on a fresh red Hat observation, throughout the acquisition, IBM and pink Hat shoppers can now:

  • Maximize their latest expertise investments and stream them greater without vicissitude to the hybrid cloud with IBM Cloud inner most and pink Hat OpenShift serving as the habitual foundation;
  • construct and set up containerized purposes on one single, integrated container platform IBM Cloud private featuring a separate view of every bit of traffic data;
  • enable developers to design, modernize, and install original purposes greater directly whereas taking learning of IBM’s cloud-based capabilities akin to synthetic intelligence (AI), internet of things (IoT) and blockchain with IBM Cloud inner most on pink Hat OpenShift Container Platform.
  • “joining forces with IBM,” mentioned pink Hat CEO Jim Whitehurst, “will give us with a better even of scale, resources and capabilities to accelerate the impact of open supply as the foundation for digital transformation and convey red Hat to an excellent wider viewers, every bit of whereas conserving their wonderful subculture and unwavering dedication to open source innovation.”

    here's the location I exigency to pump the brakes, simply a little. I in fact hope that IBM doesn’t depart heavy-passed in making an attempt to trade red Hat’s market definition and lifestyle. because if it tries to propel crimson Hat to undertake a broader IBM cultural and corporate mannequin, I don’t basically discern it ending well. Plus, I’m confident there at the moment are additional considerations from existing pink Hat consumers: What’ll occur to RHEL? How does this impact licensing and the materiel that i use? finish I should examine rivals infatuation Pivotal or different solutions infatuation Cloud Foundry? once again, time will inform how this can every bit of play out. My hope is for a straightforward integration, while conserving red Hat just as dazzling as it is nowadays.

    ultimately, it’s essential to believe in judgement what this will imply to your hybrid cloud and habitual cloud administration answer. Barring a heavy-passed approach to this acquisition, IBM and pink Hat can finish some definitely impressive things out there. here's actually the primary time in a very long time that IBM pushed itself into the forefront of cloud, container, and hybrid cloud innovation. The exciting half is how IBM will combine other options, Watson as an example, into purple Hat products. If carried out appropriate, there may besides breathe loads of advantages for the client, companies, and the cloud in established. I’m staying positive.

    bill is an enthusiastic technologist with journey in a entire lot of industries. This comprises data center, cloud, virtualization, security, AI, mobility, side options, and a considerable deal extra. His structure travail contains huge virtualization and cloud deployments as well as ... View replete Bio We welcome your feedback on this theme on their gregarious media channels, or [contact us directly] with questions about the site.

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    C2010-658 Fundamentals of Applying SmartCloud Applicaton Performa

    Study sheperd Prepared by Killexams.com IBM Dumps Experts


    Killexams.com C2010-658 Dumps and existent Questions

    100% existent Questions - Exam Pass Guarantee with tall Marks - Just Memorize the Answers



    C2010-658 exam Dumps Source : Fundamentals of Applying SmartCloud Applicaton Performa

    Test Code : C2010-658
    Test designation : Fundamentals of Applying SmartCloud Applicaton Performa
    Vendor designation : IBM
    : 69 existent Questions

    Get value pack of learning to prepare C2010-658 exam.
    C2010-658 is the hardest exam ive ever Come upon. I spent months analyzing for it, with every bit of professional resources and the entire thing one ought to find - and failed it miserably. however I didnt give up! a few months later, I delivered killexams.com to my training agenda and kept working towards on the checking out engine and the existent examination questions they provide. I believe that is precisely what helped me skip the second time round! I wish I hadnt wasted the time and moneyon every bit of this needless stuff (their books arent horrific in trendy, but I believe they dont Come up with the considerable examtraining).


    So easy preparation of C2010-658 exam with this question bank.
    C2010-658 exam changed into my purpose for this yr. a very lengthy original Years determination to attach it in replete C2010-658 . I honestly notionthat reading for this examination, making ready to pass and sitting the C2010-658 examination could breathe just as crazy as itsounds. luckily, i found a few reviews of killexams.com on line and determined to apply it. It ended up being totally well worth it as the package deal had included each question I were given on the C2010-658 exam. I handed the C2010-658 totally strain-loose and came out of the testing middle joyous and cozy. simply well worth the cash, I suppose this is the nice exam enjoyfeasible.


    agree with it or now not, just attempt as soon as!
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    I spent sufficient time reading those materials and handed the C2010-658 examination. The stuff is right, and at the very time as these are brain dumps, which means these materials are constructed at the actual exam stuff, I dont understand people who try to whinge approximately the C2010-658 questions being distinct. In my case, not every bit of questions had been 100% the same, however the topics and stylish mode believe been clearly correct. So, pals, in case you bewitch a stare at hard enough youll finish simply first-rate.


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    Commvault Systems, Inc. (CVLT) Q2 2018 Earnings Conference muster Transcript | killexams.com existent questions and Pass4sure dumps

    Logo of jester cap with thought bubble.© The Motley Fool Logo of jester cap with thought bubble.

    Commvault Systems, Inc.  (NASDAQ: CVLT)

    Q2 2018 Earnings Conference Call

    Oct. 30, 2018, 8:30 a.m. ET

    Contents:
  • Prepared Remarks
  • Questions and Answers
  • Call Participants
  • Prepared Remarks:

    Operator

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

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

    Michael Picariello -- MD of Americas Research

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

    Before they begin, I'd infatuation to remind everyone that statements made during this call, including in the question-and-answer session at the terminate of the call, may embrace forward-looking statements, including statements regarding monetary projections and future performance. every bit of 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 universal economic conditions. For a discussion of these and other risks and uncertainties affecting their business, gratify discern the risk factors contained in their Annual Report in contour 10-K and their most recent quarterly report in contour 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 muster under any circumstance. In addition, the progress 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 monetary results. The reconciliation between the non-GAAP and GAAP measures can breathe found in Table 4 accompanying the press release and posted on their website.

    Commvault adopted the original revenue touchstone ASC606 on April 1, 2017. Their adoption was done on a retrospective basis, every bit of prior periods in their monetary statements believe been adjusted to comply with the original rules.

    As a result, the results and growth percentage they will dispute today are on a comparable basis using the original rules. every bit of 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 skid presentation as fragment of Commvault prepared remarks to facilitate updates on their Commvault further 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 original 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 discern the slides, they intimate enabling replete screen skid mode within the webcast. In addition, the slides can besides breathe downloaded from the Commvault website under the Investor Relations page.

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

    I will now turn the muster over to Bob.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Thank you Mike, and righteous morning, everyone and thank you for joining their fiscal second quarter FY '19 earnings call. On today's muster they will dispute their fiscal 2019 second quarter results, their multi-year traffic model transformation to deliver shareholder value called Commvault Advance, including an update on the progress they believe made to accelerate their transition to subscription revenue models, the results of their recent operational review, which includes the announcement of original multi-year revenue and operating margin targets, and an update on their participate repurchase program. Let me briefly summarize their Q2 monetary 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 participate versus $0.21 in the prior fiscal year.

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

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

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

    The goals of Commvault further are to establish a strong foundation to help revenue, while at the very time achieving much improved operating margin leverage. The implementation was a culmin turning to their equilibrium 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 pains 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 further related changes they made during the quarter, including reorganization of their sales and distribution organizations, which in fragment shifted a significant percentage of province resources to back their channel and alliance partners and major simplification of both products pricing to bear their solutions easier to both sell and buy.

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

    Based on the early results of these changes, they are already seeing improved momentum and believe seen a acute enlarge in funnel growth, strong order stream in October and solid forecast from the field. However, given the early stage of their transformation, they end to remain conservative with their near-term outlook until they can validate the positive churn of the traffic 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 talent to execute their strategy and drive revenue and earnings growth.

    Commvault further leverages their strength and shores up their weaknesses. Specifically, they believe Commvault has a leading technology to enable large enterprises to consolidate data management to deal with the faultfinding issues related to cost, cyber compliance in the cloud, which I muster the 4Cs.

    As data scale increases, they are besides well on their path to their exit by scale in their platform. They now believe 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 pellucid technology leader and migrating and managing data in the cloud with IBM's $35 billion acquisition of Redhat this weekend, there will breathe 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 fragment of Advance, they are laser focused on improving their talent to accelerate revenues through a much stronger sales and distribution. These efforts believe been further bolstered with the recent hiring of several sales leaders with strong 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 traffic 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 factor of Commvault further is to create and enhance expanded and simplified product portfolio, which includes product innovations that bear it easier for customers to install and utilize their products and changes to packaging and pricing structures to bear 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 succor customers know their data and then determine and extract original traffic insights from data under management whether that data is on-premise or in the cloud.

    All these products believe built upon a common software and technology platform they muster 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 breathe fully integrated with the HPE store once appliances. The integration will allow backup data to breathe moved natively to the cloud or back to on premise. They hope this integration to breathe 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 province organizations and attach 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 discern significant funnel build and revenue progress with both HP and NetApp during Q3. They remain excited about the traffic opportunity represented by their alliances with every bit of 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. mount in fiscal 2018, they began transitioning a significant portion of their original 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 perquisite 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 equilibrium 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 back to their customers. As they identified economies in their cost structure, they believe not decreased their investment in R&D or customer back 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 confederate 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 existent time alerts on faultfinding issues.

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

    Our talent to enable customers to rapidly chase 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 further is in place, they believe they will discern 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 participate in large enterprises with the journey to the cloud and solutions to succor customers mitigate and regain 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 traffic analytics and finally, dramatically improving their growth in the mid-market by offering much more back to their channel and strategic partners, combined with the introduction of original innovative product offerings and pricing.

    In summary, the implementation of the Commvault further 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 location for the company to execute and deliver improved monetary performance.

    I will now turn the muster over to Brian. Brian?

    Brian Carolan -- Vice President and Chief monetary Officer

    Thank you, Bob and righteous morning everyone. In addition to covering the traditional monetary highlights for the second quarter of fiscal 2019, I will besides disburse time updating you on the progress they believe 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 original multiyear revenue and operating margin targets. And lastly, I will provide you an update on their participate repurchase program.

    In addition to their earnings release issued earlier this morning, they besides believe 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 enlarge of 1% over the prior year period. On a sequential constant currency basis, total revenue would believe 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 unconcerned 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 phase 1 of Commvault further and found significant efficiencies in their cost structure, which included reducing their overall headcount by approximately 7% since the mount of the fiscal year. They ended the September quarter with 2,644 employees.

    In addition, as they depart through phase II of Commvault Advance, they remain focused on maintaining their technological leadership position in the industry. They finish not hope these operational initiatives to believe an adverse impact their product progress 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 unconcerned participate 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 unconcerned participate weigh for replete year FY '19 will breathe 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 last six quarters has been very successful.

    For the sake of clarity and transparency, they are introducing two revenue metrics to succor investors track the growth and progress of their subscription revenue transition. As you will see, subscription revenue is becoming a larger portion of the traffic 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 muster 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. skid 9 in their presentation includes a chart that summarizes revenue based on how it is recognized and if it is potentially repeatable, nearly every bit of of Commvault software and product revenue is related to solutions that are hasten in the customers on-prem environment for cloud infrastructure.

    We currently finish not believe 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 righteous 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 believe intentionally used the word repeatable and not recurring to picture 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 period of sale.

    The only exception to this point in time recognition principle for their software products is sales of their pay as you depart 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 back services. Note that unlike software, their maintenance and back services on both perpetual and subscription software arrangements are recognized ratably over the compress term.

    Slide 10 includes a summary of the benefits of subscription models. They believe heard from many of their enterprise customers that consumption-based pricing such as subscription arrangements is very tall 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 chase to consumption-based pricing models associated with cloud storage.

    Ultimately a subscription license provides the customer with much more flexibility to suitable the changes in their traffic and technology. If subscription arrangements bear 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 stare 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 skid 11, they believe 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 back and maintenance. Each year that this customer renews their back maintenance, Commvault receives $45,000 of revenue. The total cost over a three-year period 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 every bit of (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 monetary 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 original metric not previously discussed, but widely used in the industry and that is annual compress 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 skid 13, as famous 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 back revenue on these arrangements.

    The amounts included on the recurring back and services row is primarily maintenance and back revenue related to existing perpetual software arrangements. They would account approximately 71% of their Q2 total revenue to breathe 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 skid 14. Subscription-based pricing represented a record 43% of software and products revenue in Q2, which compares to 17% in Q2 of last year.

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

    The second metric, I would infatuation to dispute is the subscription and utility annual compress value or ACV, which is shown on skid 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 lively subscription contracts value, inclusive of revenue that was recognized as either software or back services, annualized for a 12-month equivalent value plus two, the annualized value of lively utility or pay as you depart usage billings.

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

    This metric will breathe a valuable data point to demonstrate the growth of their subscription and utility-based pricing models that they hope to drive original 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 period of selling subscription licenses. Importantly, ACV is accelerating and achieved approximately 90% year-over-year growth this quarter.

    As fragment of their Commvault further 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 infatuation to disburse the next few minutes addressing both their near-term monetary outlook and their longer-term operating targets. As outlined in today's press release, they believe been making righteous progress within their Commvault further framework across every bit of 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 monetary performance of the company, while they hope that the changes they believe 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 further 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 breathe 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 discern margin expansion and strong 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 breathe approximately 15% and the replete year FY '19 EBIT margin percentage to breathe approximately 14.7%, which is a 380 basis point improvement over the prior year.

    While their strategic fundamentals are strong and their talent to execute has improved, they noiseless puss faultfinding challenges. It is valuable to note that Commvault further 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 further are in place, there is a unavoidable factor 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 believe discussed for many quarters, they are currently reliant upon a uniform inflow of large six and seven-figure deals, which Come with additional risks due to their complexity and timing.

    While they besides exigency to help their nearby rates on these deals, large deal closure rates will likely remain lumpy, particularly in the near term. And lastly, while they are gratified 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 believe a dampening upshot on revenue, but they believe will ultimately result in a higher lifetime value. As previously stated, fiscal '19 will breathe impacted by the near-term disruption of the changes they implemented that as fragment of their Commvault further 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 discern 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 breathe a key component of their improved monetary performance. As you can discern on skid 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 capitalize from renewals of existing subscription customers. As they continue driving repeatable revenue, they will focus on maximizing the value of subscription and utility annual compress value.

    As previously discussed, their current ACV is approximately $76 million. Their goal is to achieve approximately $240 million of subscription and utility annual compress value by the terminate of fiscal '21. The $240 million goal is approximately eight times the ACV they stated with when they began their chase 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 further 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 discern 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 equilibrium sheet and cash flows. As of September 30, their cash and short-term investments equilibrium 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 exotic locations from $197 million as of June 30 to $130 million as of September 30.

    Our remaining international cash equilibrium is spread across over 35 countries, while their goal is to continue to recur as much cash as practicable back to the U.S., they may not breathe able to finish so in an economically efficient manner or may breathe limited by exotic laws and regulations.

    However, they finish believe that steps they are taking will result in the vast majority of future net cash stream to breathe concentrated in the US.

    Free cash flow, which they define as cash stream 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 equilibrium was approximately $316 million, which is an enlarge of 7% over the prior year period. Nearly every bit of of their deferred revenue is services revenue that has been invoiced to customers.

    Lastly, let me update you on their participate repurchases. During fiscal 2019, which includes transactions through yesterday, they believe repurchased approximately $47 million or approximately 707,000 shares of their common stock at an unconcerned 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 participate repurchases to $200 million and extended the program for another year through March 2020.

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

    We announced a number of original products and services including an exciting original pass for customers to interface with their software called Commvault Command Center, original 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 separate console for managing Commvault's complete portfolio of products across an entire enterprise on premise, cloud and terminate point infrastructures.

    The Command focus 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 talent to bewitch corrective actions.

    Broad-based security enables IT, Admin and terminate users to believe their own easily customizable dashboards. The Command focus can breathe deployed on premise or in the cloud and is available now.

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

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

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

    All of their appliances can breathe used to seamlessly backup data on-premise or chase 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 original 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 original industry benchmark for what it means to breathe complete and backup and recovery solutions. Advances in machine learning and AI will create a sales driving infatuation experience that redefines how customers engage with their software. This is made practicable through the capabilities of the original Commvault Command Center.

    Secondly, the simple SmartCloud highlighting Commvault's talent to deliver a covenant 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 righteous extension of a modern on-premise data center.

    And lastly, they continue to help customers' learning 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 original 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 pass and the search committee is making righteous progress.

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

    We believe made comprehensive operational changes over the last 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 mount of the year were evidenced in the 61% year-over-year EBIT improvement. Now that the foundation of Commvault further is in place, they believe they will discern 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 breathe focusing their efforts on executing the key elements of Commvault further where they already believe a solid already -- where they already believe solid proof points of success.

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

    Now let me turn the muster back to Mike. Mike?

    Michael Picariello -- MD of Americas Research

    Operator, can you gratify open the line for questions?

    Questions and Answers:

    Operator

    (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 believe one for Bob and one for Brian. I'll start with Brian. Hey Brian, thanks for the detail on the chase to the subscription model. What I'm just trying to understand is with a lot of these companies, you start this -- you discern deferred revenue grow perquisite as you token 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 inquire of Bob the next question.

    Brian Carolan -- Vice President and Chief monetary Officer

    Sure. righteous 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 period of sale on the software portion.

    The only thing that goes into deferred revenue potentially would breathe the maintenance that's attached to that, just infatuation a gardenvariety arrangement under perpetual model. It's the very kind of carve out for maintenance and back that gets deferred over the contractual term.

    So you don't discern it expose up in deferred. It actually shows up in period 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 righteous visibility into the traction that we're making on more repeatable revenue models.

    Joel Fishbein -- BTIG, LLC -- Analyst

    Would you believe a backlog number then, infatuation in terms of total compress backlog or is that not a metric that might breathe meaningful?

    Brian Carolan -- Vice President and Chief monetary Officer

    That's really what, it's almost really, if you stare at the ACV is a proxy for what backlog would breathe 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 perquisite 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 weigh substantial uptick in funnel stream 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 large deals into the funnel and those deals were tied a trend in the industry for large enterprises to consolidate every bit of 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 enlarge in large deal and stream besides gives us optimism for this current quarter and it's continued.

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

    And from the midmarket standpoint, they are seeing righteous traction with their appliances in Commvault Complete and original pricing. So the entire foundation at Commvault Complete was not try to bear changes here. That's why it goes back a pair years to bear 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 assume we've done this the perquisite pass although it had some attended risks as they made these massive changes last quarter.

    Joel Fishbein -- BTIG, LLC -- Analyst

    Great, thank you.

    Operator

    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 depart back to that last question and just understand the variables at play to underpin what looks to breathe a 17%-plus sequential enlarge in your implied software license revenue this quarter.

    I assume with that in mind, it would breathe 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 enlarge conservatism judicious or what you discern to drive that even of sequential growth?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    So the funnel growth Aaron is material and significant. I weigh it's -- we're talking about a very major enlarge in the growth of funnel, particularly in large enterprises and particularly in the Americas and the assumptions we're making on funnel nearby what I muster reasonable and Brian can respond that question.

    So we're not putting Big 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 stare really righteous relative to the guidance they just provided.

    Brian Carolan -- Vice President and Chief monetary Officer

    Yeah, I assume just to follow on with Bob's point, we're using fairly typical and unconcerned nearby rates applying that to the current quarter funnel. Again, they discern a sound uptick in their enterprise deal funnel heading into this quarter, which we're pleased with. Although I did declare that could breathe 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 depart 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 assume last quarter Bob, in response to your question, you said that basically 98% I assume was the number that the total sales force realignment efforts believe been completed.

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

    Aaron Rakers, -- Wells Fargo -- Analyst

    Okay, thank you.

    Operator

    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 bear the comment that the search committee is making very righteous progress on the CEO search.

    Jason Ader -- William Blair -- Analyst

    Okay. unprejudiced enough. And then over the last 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 perquisite now, but why should investors believe that this time is going to breathe different?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Well, the only validation is for us to hit the numbers. That's the only existent validation. every bit of I can declare 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 muster it $3 million, $4 million, $5 million, $6 million benevolent of deals and they're accelerating.

    So we've got that, that's existent and these deals are well scrubbed and they're lamentable through the funnel well. In addition, we've never had the strength 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 assume fundamentally, they didn't try to finish a quick fix here. They try to really understand the market dynamics and address it.

    In addition, let me breathe pellucid about this, if you stare at their platform for the cloud, a existent 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 assume there is a stronger platform in the industry than what they believe here at Commvault.

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

    I assume we're seeing the existent traction from the consolidation taking location in the enterprise across the Board for data management functions. I assume cyber is a Big driver of that and we've had really righteous success in taking major customers and they when they regain from major cyber attacks, they had most present at their depart Conference as a righteous case of that.

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

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

    Jason Ader -- William Blair -- Analyst

    Thanks.

    Operator

    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. righteous morning. So looking at skid 21, your assumptions for repeatable revenue growth intimate growth of just 17% in fiscal '19. I assume that decelerates to about 16% by fiscal '21, despite the coalesce continuing to increase.

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

    Brian Carolan -- Vice President and Chief monetary Officer

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

    Andrew Nowinski -- Piper Jaffray -- Analyst

    Okay. unprejudiced 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 talent 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 last quarter they basically took the province 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 assume what we've stated is accurate, that you can't draw any long-term conclusion from what happened last quarter, they really believe that the majority of that was disruption.

    Andrew Nowinski -- Piper Jaffray -- Analyst

    Okay, thanks, Bob.

    Operator

    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 believe a question for Brian and then maybe a follow-up for Bob. So Brian thanks again for every bit of that information on the transition of this subscription model, that's every bit of really helpful. But when they stare at that -- the utility revenue, I assume that's one piece that's going to judgement some questions and I just want to bear confident they understand that.

    Can you disclose us about what the size or the percentage or the revenue of that revenue is infatuation 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 monetary Officer

    Sure. So the utility portion of the subscription revenue or repeatable revenue is actually -- it's relatively minuscule in the grandiose scheme of the total. I would declare that their retention rate is extremely tall 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 finish with the ACV metric is trying to annualize that as well, because it is on a hasten rate that is a bit predictable for us. And it's not -- the majority of the revenue is not even nearby to that. They didn't declare 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 believe a pretty tall retention rates. So that's righteous to hear. Okay. And Bob listen, so just to depart along some of the questioning here, Commvault always had strong 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 strong vision in compelling and terminate product, but go-to-market execution seems to believe been spotty over history.

    And you said this in this quarter, the disruption was greater than you expected and so we've heard infatuation in the province of infatuation higher than gardenvariety willful sales personnel attrition and it's -- so that seems infatuation the disruption is going to breathe -- it's going to persist here and I guess how finish you regain 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 infatuation how finish you feel confident about 9% growth next year, is it the fact that you just don't exigency 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 appear to breathe pretty valuable here.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Now, let's breathe clear. Sales is noiseless really faultfinding and the astound if you want to muster it a astound is we've always been strong 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 tiny longer so a consolidated holistic play in the enterprise and that's really accelerated and those -- that entire series of, endure 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 strong enterprise sales force 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 respond is sales for their traffic is noiseless extremely valuable and yes, there's no doubt when you bear major changes infatuation this and these are fundamental. They didn't try to troupe aid it and they did it quickly.

    You're going to discern 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 discern some attrition, disruption as they manage their pass through that. But I assume it will breathe manageable, because they got so many strengths now for their salespeople to hit their quotas and bear a lot of money.

    John DiFucci -- Jefferies -- Analyst

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yes, and stare some of that goes on when you bear major change.

    John DiFucci -- Jefferies -- Analyst

    Yeah, OK. Well thank you guys.

    Operator

    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. righteous morning. I just want to follow up on that last question, Bob, are you taking any specific actions with your top reps to incentivize them, specifically to linger on for the next pair of quarters as you depart 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 force around retention.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    The respond is just in universal they are taking specific action in specific cases and trying to bear it easier for their sales teams to deserve their quotas. There is not a universal 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 last 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 every bit of the competitors, legacy and the original competitors in the midmarket and certain, I'll muster lower scale deployment enterprise. They clearly discern the original converged guys in the market and they believe 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 find into head-to-head competition now when they are there, they believe a really tall 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 depart pass beyond their capability, particularly in their talent to chase data into the cloud to manage it in the cloud and manage it back for a data protection that every bit of the automated and orchestration capabilities they believe for debt test DRs and a class by itself now.

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

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

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

    Brian Carolan -- Vice President and Chief monetary Officer

    No, they didn't attach a number on that. I'd declare 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. every bit of right, thanks guys.

    Operator

    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 finish 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 believe they done differently this year versus past years?

    I feel infatuation 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 dissimilarity is that they believe what I muster fully integrated online plays with HP. So when they depart to market, they depart to market with a solution that includes Commvault as far as solution and that's brand new.

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

    In addition to that, for example, HB had 30 people at their confederate conference this year and they've had of storage that's working with us silhouette globally, every bit of their major accounts with Commvault, so that's really righteous on the ground integration with HP. So they attach the resources, they believe the aligned plays. We've got pricing. So they got I'd declare extremely righteous 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 original and I'll let Al bewitch the NerApp.

    Al Bunte -- COO

    Yeah, and I assume NetApp is similar to what Bob just said on HPE. Lots of programs, lots of campaigns, lots of sales initiatives, but I assume overall, one that Bob didn't talk about, it's applicable across every bit of of their major particularly storage or infrastructure partners is their talent 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 every bit of predicted that there's going to breathe a huge amount of movement in this direction.

    We besides assume 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 discern a number of again what I'd muster 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 righteous 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 talent 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 exigency for people looking out your competitors besides believe programs with them. So I'm joyous to hear there is higher even of executive commitment for you guys.

    Brian Carolan -- Vice President and Chief monetary Officer

    Higher even of integration.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    And to breathe pellucid in HPE case and they finish believe a competitor, in the enterprise they're focused with Commvault and the enterprise. The HPE play is mainly a large enterprise -- global large enterprise play.

    Eric Martinuzzi -- Lake Street -- Analyst

    Okay. Thank you.

    Operator

    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 every bit of disconnect. Everyone believe a considerable 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 monetary 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

    More CVLT analysis

    Transcript powered by AlphaStreet

    This article is a transcript of this conference muster produced for The Motley Fool. While they strive for their silly Best, there may breathe errors, omissions, or inaccuracies in this transcript. As with every bit of their articles, The Motley Fool does not assume any responsibility for your utilize of this content, and they strongly encourage you to finish your own research, including listening to the muster yourself and reading the company's SEC filings. gratify discern their Terms and Conditions for additional details, including their Obligatory Capitalized Disclaimers of Liability.

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    IBM Senior Software Engineer Alexander Amies and IBM Software Engineer Pan Xia Zou dispute how to configure and utilize a DNS server for management of virtual machines on the cloud. This is described in the context of a cloud-based virtual local area network and scripting to automate network configuration of virtual machines. One of the architects of the IBM SmartCloud Enterprise platform, Alex is a co-author of Developing and Hosting Applications on the Cloud. From the author of 

    The domain designation system (DNS) is a fundamental building block of the World Wide Web, and DNS can breathe a powerful appliance in public and private cloud computing. You can utilize DNS to unravel many practical problems associated with the dynamic nature of cloud server provisioning. In particular, DNS can bear virtual machine images, migration, and workloads portable.

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