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C2010-658 Fundamentals of Applying SmartCloud Applicaton Performa

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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 actual Questions

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IBM IBM Fundamentals of Applying

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

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

Led by passage of a crew at IBM's Watson research middle, the patent software gifts a vision for dynamic collaboration – one the state researchers can music their drudgery 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 also live notion of as an difficult application changelog, however for science. Or, as the submitting puts it, a rig that gives "a tamper resistant log of scientific research."

From the filing:

"The blockchain device can shape a blockchain representing a research challenge, in which the blockchain comprises a first conceal of research statistics and a second conceal of analysis records representing a log of an analysis performed on the research information. summary blocks and correction blocks can even live 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 lucid records collection and analysis steps. platforms that finish exist, requisite the requisite controls and mechanisms to allow for trustworthy information, as there are few options for guaranteeing that facts may live resistant to amendment."

IBM is never the simplest group working to exercise distributed ledger know-how to the scientific realm. A Berlin-primarily based consider 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 passage 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 also live Saved | killexams.com actual Questions and Pass4sure dumps

Image result for ibm

Introduction

In September, I wrote a piece of writing that chronicled the sluggish decline of peculiar 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 possess 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 dote Oracle (ORCL), Microsoft (MSFT), Apple (AAPL), and Cisco (CSCO) which possess a gauge 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 – possess invested in the enterprise, hoping that it'll achieve a turnaround. they possess replete 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 catalyst so that it will consume the inventory bigger. This evaluation might live a comply with as much as the previous article and should highlight more complications that the massive blue is facing and how it can live saved.

Elephant within the Room: RHT

When tremendous corporations are in decline, they possess a addiction of creating indigent selections mainly when it comes to acquisitions. Two examples of this are the decision through Sears Holdings (SHLD) to purchase ok-Mart and the decision 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 business introduced that it might spend $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 diminutive thing in regards to the cloud market. BM will revolve into the world's #1 hybrid cloud company, offering corporations the handiest open cloud retort that will release the total expense of the cloud for his or her organizations

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

BHGE is an business chief positioned to convey in any economic atmosphere and cheer their purchasers in using productiveness. This deal capitalizes on the existing cycle in oil and gasoline while additionally strengthening their state for the market recuperation. As they Go ahead, the novel 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 right 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 advocate IBM consume an improved market share in the cloud business. despite the fact, a peep at crimson Hat’s revenues suggests a unique picture. Most of its revenues approach 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 component became additionally mentioned by using Barron’s article that interviewed an analyst from Bernstein who preeminent that:

more than half of red Hat’s income become generated by means of its detached on-premise server working-device business, which isn’t at once tied to the cloud and has a slowing multiply 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, replete 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 requisite 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 altenative 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 business in the back of Amazon, Microsoft, Alibaba (BABA), and Google (GOOG). In public cloud, it has a market share of 6%, which is miniscule in comparison to Amazon’s 46% market share.

in short, IBM is following the very vogue 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 replete 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 sign that a very sound number of investors don’t consider 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 worn article. This deal besides the fact that children presents IBM with a stability sheet difficulty. To finance the all-money transaction, IBM will should hoist 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 possess a debt to GDP ratio of 0.8867, 1.527, 1.068, and zero.fifty nine respectively. Their generic is 1.01. hence, this will aggravate when the enterprise concerns greater debt to finance the acquisition.

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

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

compare this with the multiply 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 current 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 dependence will now not advocate it in future. brace replete this with the hefty $18 billion pension liability which is higher than that of comparable organizations.

IBM can also live Saved

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

while issues peep darkish for IBM, I agree with that it may also live saved. other historical expertise businesses possess replete been in a similar situation dote 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 passage 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 business and acquire shoppers. In cloud, the churn expense is so low that after a company acquires a consumer, it may possibly live confident that the company will not defect to its competitors.

subsequent, as with different tech organizations which possess 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 live able to revolve it round in future?

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

superior, it could actually employ its ventures arm to rescue money into small startups in a similar fashion 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 dependence 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 dote Accenture (CAN), Wipro (WIT), and Cognizant technologies (CTSH) which possess shameful margins of 30%, 30%, and 39%. hence, on a sum-of ingredients groundwork, this section lonesome can also live expense greater than $30 billion if you chance to compare it with its friends.

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

last thoughts

IBM’s inventory has continued to sing no after the announcement of the pink Hat acquisition. As I actually possess explained, the business continues to visage main headwinds that will doubtless consume it reduce. despite the fact, I consider that the administrators can serve the business 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 business whose inventory is mentioned listed here.


How IBM and purple Hat Will possess an effect on Your Cloud fashion | killexams.com actual Questions and Pass4sure dumps

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

IBM is a long fashion from making actual machines. That Part 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 also possess heard diminutive 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 dote 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 live worth $240 billion or more – this changed into nearly as sound a time as any to basically consume 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 soar 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 novel 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 retort JBoss, CloudForms, and the very potent cloud and container administration system – OpenShift.

For IBM, this capacity opening the aperture into a quick-paced and starting to live 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 gauge container management solutions (OpenShift) will supply IBM consumers the sorts of rig and features to approach digital transformation efforts in addition to total technology modernization shifts.

The total proposal of "monolith to microservices" can live encompassed by using this IBM+red Hat deal. technology dote 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. amalgamate 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 Story for hybrid cloud deployment and management.

“With IBM’s recent current to containerize its middleware, nowadays’s landmark partnership between IBM and purple Hat provides consumers with extra alternative and suppleness. Their detached vision for hybrid cloud the employ 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 develop a altenative 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 business agencies and their hybrid cloud initiatives. Did IBM pay a premium for red Hat? You stronger consider it. turned into it value it? Time will inform. Coming from in the back of is rarely handy, however this is an excellent passage to state 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, believe about leveraging pink Hat rig to possess an effect on replete of those remarkable IBM clients which possess 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 business 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 usual foundation;
  • construct and set up containerized purposes on one single, integrated container platform IBM Cloud private featuring a separate view of replete business data;
  • enable developers to design, modernize, and install novel purposes greater directly whereas taking knowledge 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 level of scale, resources and capabilities to accelerate the repercussion of open supply as the foundation for digital transformation and convey red Hat to an excellent wider viewers, replete whereas conserving their wonderful subculture and unwavering dedication to open source innovation.”

    here's the state I requisite to pump the brakes, simply a little. I in fact hope that IBM doesn’t Go heavy-passed in making an attempt to trade red Hat’s market definition and lifestyle. because if it tries to push 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 minute are additional considerations from existing pink Hat consumers: What’ll occur to RHEL? How does this repercussion licensing and the rig that i use? finish I should examine rivals dote Pivotal or different solutions dote Cloud Foundry? once again, time will inform how this can replete 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 possess in repartee what this will imply to your hybrid cloud and usual 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 also live 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 all lot of industries. This comprises data center, cloud, virtualization, security, AI, mobility, side options, and a considerable deal extra. His structure drudgery contains huge virtualization and cloud deployments as well as ... View replete Bio We welcome your feedback on this theme on their social media channels, or [contact us directly] with questions about the site.

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    C2010-658 Fundamentals of Applying SmartCloud Applicaton Performa

    Study guide Prepared by Killexams.com IBM Dumps Experts


    Killexams.com C2010-658 Dumps and actual Questions

    100% actual Questions - Exam Pass Guarantee with high 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 actual Questions

    Get value pack of knowledge to prepare C2010-658 exam.
    C2010-658 is the hardest exam ive ever approach upon. I spent months analyzing for it, with replete professional resources and the all 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 actual 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 replete this needless stuff (their books arent horrific in trendy, but I believe they dont approach 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 novel Years decision to rescue it in replete C2010-658 . I honestly notionthat reading for this examination, making ready to pass and sitting the C2010-658 examination could live 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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    Right state to find C2010-658 dumps paper.
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    Do not spend large amount on C2010-658 guides, collect this question bank.
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    Nice to hear that actual test questions of C2010-658 exam are available.
    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 replete questions had been 100% the same, however the topics and smart fashion possess been clearly correct. So, pals, in case you consume a peep at arduous enough youll finish simply first-rate.


    Shortest questions that works in actual test environment.
    Its a completely beneficial platform for operating experts dote us to exercise the query pecuniary institution anywhere. im very an depraved lot grateful to you people for creating such a terrific exercise questions which changed into very beneficial to me within the final days of examinations. ive secured 88% marks in C2010-658 exam and the revision exercise exams helped me loads. My notion is that gratify multiply an android app in order that humans dote us can exercise the checks whilst travelling also.


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    Commvault Systems, Inc. (CVLT) Q2 2018 Earnings Conference muster Transcript | killexams.com actual 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 dote to insert 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 pecuniary Officer.

    Before they begin, I'd dote to remind everyone that statements made during this call, including in the question-and-answer session at the terminate of the call, may involve forward-looking statements, including statements regarding pecuniary projections and future performance. replete 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 differ 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 generic 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 shape 10-K and their most recent quarterly report in shape 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 development and timing of any product release as well as features or functionality remain at their sole discretion.

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

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

    Commvault adopted the novel revenue gauge ASC606 on April 1, 2017. Their adoption was done on a retrospective basis, replete prior periods in their pecuniary statements possess been adjusted to comply with the novel rules.

    As a result, the results and growth percentage they will debate today are on a comparable basis using the novel rules. replete 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 also involve a slither presentation as Part of Commvault prepared remarks to facilitate updates on their Commvault forward initiatives. These initiatives involve an update on their transition to subscription revenue models, as well as their recent operational review. The slides also cover their announcement of novel multi-year revenue and operating margin targets. If you've not done so already, I would imply logging into the webcast now to view or download a copy of the slides.

    Please also note that in order to best discern the slides, they imply enabling replete screen slither mode within the webcast. In addition, the slides can also live 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 live available on their website following the call.

    I will now revolve the muster over to Bob.

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

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

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

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

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

    The goals of Commvault forward are to establish a strong foundation to better 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 brace of years of effort across products, pricing, a reorganization of their sales and distribution functions and the establishment of a much stronger, more efficient routes to market.

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

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

    Based on the early results of these changes, they are already seeing improved momentum and possess seen a keen multiply in funnel growth, strong order current in October and solid forecast from the field. However, given the early stage of their transformation, they plot to remain conservative with their near-term outlook until they can validate the positive churn of the business 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 consume odds of the major shift in the market and significantly improves their capacity to execute their strategy and drive revenue and earnings growth.

    Commvault forward leverages their force 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 critical issues related to cost, cyber compliance in the cloud, which I muster the 4Cs.

    As data scale increases, they are also well on their path to their exit by scale in their platform. They now possess 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 lucid technology leader and migrating and managing data in the cloud with IBM's $35 billion acquisition of Redhat this weekend, there will live additional focus on cloud and Commvault is well positioned to consume 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 Part of Advance, they are laser focused on improving their capacity to accelerate revenues through a much stronger sales and distribution. These efforts possess 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 business model optimization changes that will deliver shareholder value involve 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 component of Commvault forward is to create and enhance expanded and simplified product portfolio, which includes product innovations that develop it easier for customers to install and employ their products and changes to packaging and pricing structures to develop 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 disaster recovery, data test and data migration, particularly in the cloud and fourth, Commvault Activate, which is designed to cheer customers know their data and then discover and extract novel business insights from data under management whether that data is on-premise or in the cloud.

    All these products possess 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 involve 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 live fully integrated with the HPE store once appliances. The integration will allow backup data to live moved natively to the cloud or back to on premise. They await this integration to live 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 realm organizations and rescue 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 await to discern significant funnel build and revenue progress with both HP and NetApp during Q3. They remain excited about the business opening represented by their alliances with replete of these leading technology vendors and believe that these relationships will drive significant opening for Commvault going forward.

    Let me talk about their transition to subscription pricing. soar in fiscal 2018, they began transitioning a significant portion of their novel 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 right long-term model in order to drive, better and sustainable revenue growth for the future. Brian will highlight some of these key metrics, which betoken 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 brace 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 better their business, one thing they will not change is their commitment to innovation and delivering world-class solutions and advocate to their customers. As they identified economies in their cost structure, they possess not decreased their investment in R&D or customer advocate 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 synthetic intelligence to automatically adjust backup schedules, dynamically auto optimize operations to better IT resource utilization, consume immediate actions to mitigate damage from a cyber attack and provide actual time alerts on critical issues.

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

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

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

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

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

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

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

    Brian Carolan -- Vice President and Chief pecuniary Officer

    Thank you, Bob and sound morning everyone. In addition to covering the traditional pecuniary highlights for the second quarter of fiscal 2019, I will also spend time updating you on the progress they possess 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 also update you on the results of their recent operational review, which includes the announcement of novel multiyear revenue and operating margin targets. And lastly, I will provide you an update on their share repurchase program.

    In addition to their earnings release issued earlier this morning, they also possess made available a presentation on the Investor Relations section of their website and also 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 multiply of 1% over the prior year period. On a sequential constant currency basis, total revenue would possess 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 detached 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 forward and found significant efficiencies in their cost structure, which included reducing their overall headcount by approximately 7% since the soar of the fiscal year. They ended the September quarter with 2,644 employees.

    In addition, as they Go through phase II of Commvault Advance, they remain focused on maintaining their technological leadership position in the industry. They finish not await these operational initiatives to possess an adverse repercussion their product development strategy.

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

    Net income for the quarter was $19.1 million and EPS was $0.40 based on a diluted weighted detached share matter 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 detached share matter for replete year FY '19 will live approximately 48 million shares.

    Let's now change gears and spend 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 terminal six quarters has been very successful.

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

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

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

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

    Ultimately a subscription license provides the customer with much more flexibility to accommodate the changes in their business and technology. If subscription arrangements develop 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 peep at a simple representative sample 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 slither 11, they possess 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 advocate and maintenance. Each year that this customer renews their advocate maintenance, Commvault receives $45,000 of revenue. The total cost over a three-year era 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 replete (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 also realize other pecuniary 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 critical 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 betoken the potential value of the transition to CommVault shareholders.

    The first is repeatable revenue and the second is a novel metric not previously discussed, but widely used in the industry and that is annual constrict 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 slither 13, as preeminent 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 advocate revenue on these arrangements.

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

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

    The second metric, I would dote to debate is the subscription and utility annual constrict value or ACV, which is shown on slither 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 active subscription contracts value, inclusive of revenue that was recognized as either software or advocate services, annualized for a 12-month equivalent value plus two, the annualized value of active utility or pay as you Go usage billings.

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

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

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

    I would now dote to spend the next few minutes addressing both their near-term pecuniary outlook and their longer-term operating targets. As outlined in today's press release, they possess been making sound progress within their Commvault forward framework across replete 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 pecuniary performance of the company, while they await that the changes they possess made to products, pricing, distribution and partnerships will drive future revenues and operating leverage, they also took actions to align their cost structure with a reasonable revenue growth target.

    As Bob discussed earlier, the implementation of the Commvault forward initiatives resulted in near-term disruption that did not allow us to achieve their Q2 and near-term topline objectives. They are also conservatively planning for modest revenue growth in Q3 and Q4. They await third quarter total revenue to live 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 await the Q3 EBIT margin percentage to live approximately 15% and the replete year FY '19 EBIT margin percentage to live approximately 14.7%, which is a 380 basis point improvement over the prior year.

    While their strategic fundamentals are strong and their capacity to execute has improved, they noiseless visage critical challenges. It is critical to note that Commvault forward is a major transformation and restructuring effort. They are making fundamental changes to the business, which carries risk, tide to disruption and execution. While they believe that the majority of the elements of Commvault forward are in place, there is a certain component 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 possess discussed for many quarters, they are currently reliant upon a equable inflow of large six and seven-figure deals, which approach with additional risks due to their complexity and timing.

    While they also requisite to better their nearby rates on these deals, large deal closure rates will likely remain lumpy, particularly in the near term. And lastly, while they are ecstatic 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 possess a dampening effect on revenue, but they believe will ultimately result in a higher lifetime value. As previously stated, fiscal '19 will live impacted by the near-term disruption of the changes they implemented that as Part of their Commvault forward initiatives.

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

    Turning to the next slide, you can 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 also live a key component of their improved pecuniary performance. As you can discern on slither 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 opening for Commvault to significantly profit from renewals of existing subscription customers. As they continue driving repeatable revenue, they will focus on maximizing the value of subscription and utility annual constrict value.

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

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

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

    As you can 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 peculiar 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 recrudesce as much cash as feasible back to the U.S., they may not live able to finish so in an economically efficient manner or may live limited by peculiar laws and regulations.

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

    Free cash flow, which they define as cash current 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 multiply of 7% over the prior year period. Nearly replete of their deferred revenue is services revenue that has been invoiced to customers.

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

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

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

    We announced a number of novel products and services including an exciting novel passage for customers to interface with their software called Commvault Command Center, novel 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 hub is enhanced with the power of synthetic 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 capacity to consume corrective actions.

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

    We announced a novel backup and recovery as a service offering to deliver Commvault's powerful simplicity for customers wishing to consume backup and recovery requisite as a service. They also 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 live available within cloud marketplaces for ease of acquisition and deployment. Customers can purchase the services as a Pay As You Go license or as a fixed term subscription. They also expanded the company's family of appliances with addition of two novel appliances. The novel 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 novel larger appliance is targeted at managed service providers and large enterprises featuring stellar technology with their Commvault Hyperscale software. The small offering takes a replete power of Commvault complete backup recovery into an appliance offering consummate for remote office and offshoot offices.

    All of their appliances can live used to seamlessly backup data on-premise or slip 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 betoken Al and I also delivered a keynote presentation that outlined novel 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 novel industry benchmark for what it means to live complete and backup and recovery solutions. Advances in machine learning and AI will create a sales driving dote sustain that redefines how customers engage with their software. This is made feasible through the capabilities of the novel Commvault Command Center.

    Secondly, the simple SmartCloud highlighting Commvault's capacity to deliver a swear 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 sound extension of a modern on-premise data center.

    And lastly, they continue to better customers' knowledge 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 await more as they deliver truly complete backup and recovery.

    Before they wrap up, let me briefly update you on the search process for a novel 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 passage and the search committee is making sound progress.

    In closing, under Commvault forward they made significant progress in the quarter, establishing a stronger foundation to better enable us to achieve more improved and predictable pecuniary 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 forward initiatives and are excited about their accelerating subscription revenue.

    We possess made comprehensive operational changes over the terminal 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 soar of the year were evidenced in the 61% year-over-year EBIT improvement. Now that the foundation of Commvault forward is in place, they believe they will discern increased momentum as their channel strategy, go-to-market initiatives and alliance partnerships start to betoken positive traction.

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

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

    Now let me revolve 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 possess one for Bob and one for Brian. I'll start with Brian. Hey Brian, thanks for the detail on the slip 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 right as you sign these deals, particularly larger ones and I'm just trying to understand why we're not seeing an uptick in deferred revenue with some of these subscription deals? And then I'll wait -- just demand Bob the next question.

    Brian Carolan -- Vice President and Chief pecuniary Officer

    Sure. sound 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 era of sale on the software portion.

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

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

    Joel Fishbein -- BTIG, LLC -- Analyst

    Would you possess a backlog number then, dote in terms of total constrict backlog or is that not a metric that might live meaningful?

    Brian Carolan -- Vice President and Chief pecuniary Officer

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

    Joel Fishbein -- BTIG, LLC -- Analyst

    Okay. Great. And then Bob just for you, what gives you confidence that you can grow 9% next year? Obviously you're making a lot of changes right 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 involve substantial uptick in funnel current 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 replete 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 multiply in large deal and current also gives us optimism for this current quarter and it's continued.

    And secondly, as I discussed in my remarks, they now possess a much stronger distribution position and although that's going to consume a diminutive time to repercussion 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 business and also that is also being driven by a much stronger confederate and alliance relationships in the enterprise.

    And from the midmarket standpoint, they are seeing sound traction with their appliances in Commvault Complete and novel pricing. So the all foundation at Commvault Complete was not try to develop changes here. That's why it goes back a brace years to develop 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 believe we've done this the right passage although it had some attended risks as they made these massive changes terminal 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 Go back to that terminal question and just understand the variables at play to underpin what looks to live a 17%-plus sequential multiply in your implied software license revenue this quarter.

    I believe with that in mind, it would live 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 multiply conservatism sapient or what you discern to drive that level of sequential growth?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    So the funnel growth Aaron is material and significant. I involve it's -- we're talking about a very major multiply 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 retort that question.

    So we're not putting large 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 also peep really sound relative to the guidance they just provided.

    Brian Carolan -- Vice President and Chief pecuniary Officer

    Yeah, I believe just to follow on with Bob's point, we're using fairly typical and detached nearby rates applying that to the current quarter funnel. Again, they discern a robust uptick in their enterprise deal funnel heading into this quarter, which we're pleased with. Although I did sing that could live 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 kind of validates what you saw it Go 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 believe terminal quarter Bob, in response to your question, you said that basically 98% I believe was the number that the total sales coerce realignment efforts possess been completed.

    As they peep 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 live anticipated in front of us if there are any?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    I would sing the bulk of this is behind us, but as they Go forward and bring the leadership in, which we've done, I believe over time they will continue to refine that model. So I believe there are additional benefits to live 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 develop the remark that the search committee is making very sound progress on the CEO search.

    Jason Ader -- William Blair -- Analyst

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Well, the only validation is for us to hit the numbers. That's the only actual validation. replete I can sing 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 kind of deals and they're accelerating.

    So we've got that, that's actual and these deals are well scrubbed and they're affecting through the funnel well. In addition, we've never had the force 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 believe 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 live lucid about this, if you peep at their platform for the cloud, a actual 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 believe there is a stronger platform in the industry than what they possess here at Commvault.

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

    I believe we're seeing the actual traction from the consolidation taking state in the enterprise across the Board for data management functions. I believe cyber is a large driver of that and we've had really sound success in taking major customers and they when they recoup from major cyber attacks, they had most present at their Go Conference as a sound sample of that.

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

    So in spite of the changes the things they made, I believe the company is fundamentally in a extremely strong strategic position to accelerate growth and they possess 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. sound morning. So looking at slither 21, your assumptions for repeatable revenue growth imply growth of just 17% in fiscal '19. I believe that decelerates to about 16% by fiscal '21, despite the amalgamate continuing to increase.

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

    Brian Carolan -- Vice President and Chief pecuniary Officer

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

    Andrew Nowinski -- Piper Jaffray -- Analyst

    Okay. dispassionate 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 capacity 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 terminal quarter they basically took the realm out for about six weeks as we're going through this all 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 believe what we've stated is accurate, that you can't draw any long-term conclusion from what happened terminal 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 possess a question for Brian and then maybe a follow-up for Bob. So Brian thanks again for replete that information on the transition of this subscription model, that's replete really helpful. But when they peep at that -- the utility revenue, I believe that's one piece that's going to occasions some questions and I just want to develop confident they understand that.

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

    Brian Carolan -- Vice President and Chief pecuniary Officer

    Sure. So the utility portion of the subscription revenue or repeatable revenue is actually -- it's relatively small in the grand scheme of the total. I would sing that their retention rate is extremely high 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 run rate that is rather predictable for us. And it's not -- the majority of the revenue is not even nearby to that. They didn't sing 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 possess a pretty high retention rates. So that's sound to hear. Okay. And Bob listen, so just to Go 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 possess been spotty over history.

    And you said this in this quarter, the disruption was greater than you expected and so we've heard dote in the realm of dote higher than classic willing sales personnel attrition and it's -- so that seems dote the disruption is going to live -- it's going to persist here and I guess how finish you recoup from that?

    I know you're trying to shift more to partners, but that also increases some risk to any kind of shift those right. So I guess to some of those questions around dote how finish you feel confident about 9% growth next year, is it the fact that you just don't requisite 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 live pretty critical here.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Now, let's live clear. Sales is noiseless really critical and the astonish if you want to muster it a astonish 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 brace of years shifted to buying point products, the next shiny box or whatever and that began shifting probably about six months ago, maybe a diminutive longer so a consolidated holistic play in the enterprise and that's really accelerated and those -- that all succession of, stand if I just went through on consolidation, cost, cyber compliance and I'll just mention offline here that we've automated so much of the processes within data management now.

    So we've taken a lead in automation both on premise and the cloud. So you've got this massive shift in the enterprise that is more holistic enterprisewide solutions that requires a really strong enterprise sales coerce 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 chance in a day. It is happening as they speak, we're seeing in, but that engine will gain momentum quarter-on-quarter. So the retort is sales for their business is noiseless extremely critical and yes, there's no doubt when you develop major changes dote this and these are fundamental. They didn't try to troop 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 passage through that. But I believe it will live manageable, because they got so many strengths now for their salespeople to hit their quotas and develop a lot of money.

    John DiFucci -- Jefferies -- Analyst

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yes, and peep some of that goes on when you develop 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. sound morning. I just want to follow up on that terminal question, Bob, are you taking any specific actions with your top reps to incentivize them, specifically to stay on for the next brace of quarters as you Go 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 coerce around retention.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    The retort is just in generic they are taking specific action in specific cases and trying to develop it easier for their sales teams to merit their quotas. There is not a generic 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 terminal brace of earnings calls around a brace of emerging platforms that are competing in the channel, just any kind 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 replete the competitors, legacy and the novel competitors in the midmarket and certain, I'll muster lower scale deployment enterprise. They clearly discern the novel converged guys in the market and they possess a lot of momentum, but now you've got a Commvault with a replete product line and much stronger distribution, to deal with that I can say.

    When they collect into head-to-head competition now when they are there, they possess a really high 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 Go passage beyond their capability, particularly in their capacity to slip data into the cloud to manage it in the cloud and manage it back for a data protection that replete the automated and orchestration capabilities they possess for debt test DRs and a class by itself now.

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

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

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

    Brian Carolan -- Vice President and Chief pecuniary Officer

    No, they didn't rescue a number on that. I'd sing 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. replete 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 brace 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 possess they done differently this year versus past years?

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    I'll consume HP and I'll let Al consume the NerApp. The disagreement is that they possess what I muster fully integrated online plays with HP. So when they Go to market, they Go to market with a solution that includes Commvault as far as solution and that's brand new.

    That agreement was completely novel agreement that was executed this summer and basically went into market over the terminal brace of months. They possess significant deals in the funnel with them that are actual 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, replete their major accounts with Commvault, so that's really sound on the ground integration with HP. So they rescue the resources, they possess the aligned plays. We've got pricing. So they got I'd sing extremely sound alignment with them and they're putting a lot of resource behind their partnership.

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

    Al Bunte -- COO

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

    We also believe 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 kind of trend.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yean and Al just made a really sound 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 capacity 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 requisite for people looking out your competitors also possess programs with them. So I'm joyous to hear there is higher level of executive commitment for you guys.

    Brian Carolan -- Vice President and Chief pecuniary Officer

    Higher level of integration.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    And to live lucid in HPE case and they finish possess 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 replete disconnect. Everyone possess 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 pecuniary 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 preposterous Best, there may live errors, omissions, or inaccuracies in this transcript. As with replete their articles, The Motley Fool does not assume any responsibility for your employ of this content, and they strongly cheer 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 debate how to configure and employ a DNS server for management of virtual machines on the cloud. This is described in the context of a cloud-based virtual local district 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 structure conceal of the World Wide Web, and DNS can live a powerful implement in public and private cloud computing. You can employ DNS to resolve many practical problems associated with the dynamic nature of cloud server provisioning. In particular, DNS can develop virtual machine images, migration, and workloads portable.

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