Date: Feb 21, 2023, 4:30 p.m. ET

Call participants:

Clay Bilby

Nikesh Arora -- Chairman and Chief Executive Officer

Dipak Golechha -- Chief Financial Officer

Brian Essex -- JPMorgan Chase and Company -- Analyst

Hamza Fodderwala -- Morgan Stanley -- Analyst

Fatima Boolani -- Citi -- Analyst

Brad Zelnick -- Deutsche Bank -- Analyst

Tal Liani -- Bank of America Merrill Lynch -- Analyst

Keith Bachman -- BMO Capital Markets -- Analyst

Patrick Colville -- Scotiabank -- Analyst

Matt Hedberg -- RBC Capital Markets -- Analyst

Jonathan Ho -- William Blair and Company -- Analyst

Saket Kalia -- Barclays -- Analyst

Joe Gallo -- Jefferies -- Analyst

Ben Bollin -- Cleveland Research Company -- Analyst

Q&A Session

Clay Bilby

Great. Thank you, Dipak. To allow for broad participation, I would ask that each person ask only one question. The first question will be from Brian Essex of JPMorgan, with Hamza Fodderwala to follow.

Brian, you may ask your question.

偉大的。 謝謝你，迪帕克。 為了廣泛參與，我會要求每個人只問一個問題。 第一個問題將來自摩根大通的 Brian Essex，隨後是 Hamza Fodderwala。

布賴恩，你可以問你的問題。

Brian Essex -- JPMorgan Chase and Company -- Analyst

Great. Thank you, Clay, and congrats to everyone on some fantastic results. Really, really strong here. Thanks for taking the question.

Maybe Nikesh for you, I just have a question on SASE. Maybe if you could dig in a little bit to the competitive dynamics there. Does it really help to -- I guess, how much does it help the platform to have full end-to-end SASE? I see a lot of private vendors building out full and end SASE platforms. Or is this more of a transformational push or maybe there's a little bit of both? Thank you.

太好了。謝謝您，Clay，也祝賀大家取得了一些極好的成績。真的非常強勁。感謝您回答這個問題。

也許這個問題可以交給Nikesh回答，我想問一下有關 SASE 的問題。也許您可以深入探討一下其競爭動態。擁有完整的端到端 SASE 是否真的有助於平台的發展？我看到許多私人供應商正在構建完整的端到端 SASE 平台。還是說這更多是推動變革的推力，或者兩者都有一點呢？謝謝。

Nikesh Arora -- Chairman and Chief Executive Officer

Hey, thanks for the question. Look, the SASE market, I think traditionally was a market which was focused on Internet access. Customers use that as a proxy-based way to onboard Internet access and was fine. I think the pandemic really flipped the switch.

Coupled with the whole cloud transformations that are going on, our customers, especially larger customers, want to create a first -- first-class citizen of any user who's not sitting in the office or in the campus, and they want to get to Zero Trust. So, I think the confluence of Zero Trust, the confluence of the cloud transformation, the confluence to apply a full security stack opened the door for full SASE deployment to network transformations, couple that with the fact that people are trying to get away from large wide- network-type network architectures, SD-WAN type network. So, I think, our confidence on all of these things created a real spurt in the SASE market. We have 60-plus thousand customers who use our firewalls.

嗨，感謝您的問題。SASE市場，我認為傳統上是一個以互聯網訪問為重點的市場。客戶使用它作為一種基於代理的方式來啟用互聯網訪問並沒有問題。我認為疫情大流行真正地推動了轉變。

再加上正在進行的整個雲端轉型，我們的客戶，尤其是大客戶，想要創造一個第一級公民，讓任何不在辦公室或校園的用戶都能夠接入，並想實現零信任。因此，我認為零信任、雲端轉型、應用完整安全堆棧的匯合開啟了實施全面SASE部署的大門，再加上人們試圖擺脫大型廣域網絡式的網絡架構，如SD-WAN類型的網絡。因此，我們對所有這些事情的信心創造了SASE市場的真正增長。我們有超過6萬個客戶使用我們的防火牆。

Now we're showing them a path to migrate from a firewall-based, campus-based, data center-based architecture to a Zero Trust architecture, which spans hardware, software and any kind of remote access and campus solutions. So, I think that's what's driving that for us. And while your guys -- you're impatient. Your brains move faster than our ability to execute sometimes.

It's only been three years. And I think I could challenge anybody out in the market. And everybody read the same Gartner Magic Quadrant on SASE. I want to see how many vendors can claim that the last six quarters, they sold $1 billion SASE, and who just did a $40 million deal in SASE last quarter.

So, I think that's our execution, our ability to work with existing customers, our constantly listening to customers evolving our product is allowing us to get here. It's a competitive market, but I think we're down to two, two and a half vendors in this market who we see at every customer now.

現在，我們正在為他們展示從基於防火牆、基於校園、基於數據中心的架構到涵蓋硬件、軟件和任何類型的遠程訪問和校園解決方案的零信任架構的遷移路徑。因此，我認為這是推動我們的原因。雖然你們有些不耐煩，你們的頭腦有時比我們的執行能力更快。

才過去了三年。我想我可以向市場上的任何人發起挑戰。每個人都讀過同樣的Gartner SASE魔力象限報告。我想看看有多少供應商能聲稱過去六個季度他們賣了10億美元的SASE，並在上個季度完成了4000萬美元的SASE交易。

因此，我認為這是我們的執行能力，我們與現有客戶合作的能力，我們不斷聆聽客戶並發展產品的能力，使我們能夠達到這裡。這是一個競爭激烈的市場，但我們在這個市場中看到的只有兩個、兩個半的供應商，他們現在在每個客戶那裡都出現。

Clay Bilby

All right. Our next question from Hamza Fodderwala with Morgan Stanley, with Fatima to follow. Go ahead, Hamza.

好的，下一個問題由Morgan Stanley的Hamza Fodderwala提出，之後是Fatima。請開始，Hamza。

Hamza Fodderwala -- Morgan Stanley -- Analyst

Hey, good afternoon. Thank you for taking my question. Maybe for Nikesh and Lee Klarich. Just curious around the early customer conversations around AI as customers look to automate their security operations.

And to what extent is that aiding the conversation toward consolidation for Palo Alto Networks?

嗨，下午好。感謝您回答我的問題。也許是給Nikesh和Lee Klarich的問題。對於客戶在尋求自動化安全操作時早期的AI對話，有些好奇。

在這方面，這是否有助於促進Palo Alto Networks的整合對話，以何種程度呢？

Nikesh Arora -- Chairman and Chief Executive Officer

That's a great question, Hamza. And I've been sort of on and off in terms of how to temper my enthusiasm for this space. And I was on my way to India to speak at a convocation, I experienced ChatGPT for the first time. And I turned around and rewrote my convocation speech saying, this is the best thing that happened to security, enterprise, and to consumer because I think it's kind of an inflection point, which is big.

Now, clearly, that's a conversation. I'd say three months ago, customers were not asking us about AI, and now they all want to know, are you deploying AI in your security products? That's great. And that's why we spent some time on the earnings call trying to elaborate how we've been using this for a long time. The conversations are around how do I start making more sense of my data.

這是一個很好的問題，Hamza。我對於這個領域的熱情有些起伏。當我前往印度發表演講時，第一次體驗了ChatGPT。我立刻轉身重寫我的演講稿，說這是對於安全、企業和消費者來說最好的事情，因為我認為這是一個重要的轉折點。

現在，顯然這是一個對話的問題。三個月前，客戶並沒有問我們關於AI的事情，現在他們都想知道，我們的安全產品是否部署了AI？這很好。這就是為什麼我們在財報電話會議上花了一些時間，試圖闡述我們一直在使用這個技術。這些對話都是關於如何開始更好地理解我的數據。

I think the last iteration of using data in the security industry has been more about, I'd say, offline or reactive data analysis for the most part. And this is the first time the customers want real-time, proactive, block-the-threat outcomes, which is sort of our sweet spot, if I may say so. And that conversation is beginning to start. I'll tell you, on XSIAM, there's no deal less than $1 million.

I haven't seen a security product that we launched in the industry which starts off at a minimum price of $1 million, right? We've done $30 million of business in the last 12 to 16 weeks, where our customers -- our teams are still getting trained. We're still getting traction. We still have, we think, 70%, 80% of the product developers still working on the rest of it as we get feedback from customers. And I'm cautiously optimistic.

我認為安全行業過去使用數據的最後一個版本，大多數情況下是關於離線或反應式的數據分析。這是客戶第一次想要實時、主動地阻止威脅的結果，這是我們的強項。這些對話正開始展開。我告訴你，在XSIAM上，沒有少於1百萬美元的交易。

我還沒有見過一個安全產品，在行業中，起始價格是1百萬美元以上。在過去的12到16周中，我們已經做了3千萬美元的生意，我們的團隊仍在接受培訓。我們仍在取得進展，我們認為仍有70％到80％的產品開發人員正在開發產品，因為我們需要從客戶那裡得到反饋。我謹慎樂觀。

And I think you will see this pave the way for deployment of AI. This is our first outcome-based product. This is the first time we can walk in and say, listen, I can reduce your mean time to respond, a mean time to detect. Otherwise, I'd say, use this, this is really good, it's going to save you, but he won't find out until something happens.

In the case of XSIAM, I say, I can demonstrate efficiency, I can demonstrate lower cost of ownership for you. So, very hopeful. Don't get ahead of yourself. It's going to take a while.

I really told you we'd be happy if I get $100 million faster than any of the product. And hopefully, this becomes another leg of growth for Palo Alto to give us more sustained top line over the long term.

我認為你會看到這為人工智能的部署鋪平了道路。 這是我們的第一個基於結果的產品。 這是我們第一次走進來說，聽著，我可以減少你的平均響應時間，平均檢測時間。 不然的話，我就說，用這個吧，這個確實不錯，能救你，只是出事了他才發現。

就 XSIAM 而言，我說，我可以展示效率，我可以為您展示更低的擁有成本。 所以，非常有希望。 不要超越自己。 這需要一段時間。

我真的告訴過你，如果我能比任何產品更快獲得 1 億美元，我們會很高興。 希望這成為帕洛阿爾託的另一條增長點，為我們提供更可持續的長期收入。

Clay Bilby

All right. Our next question from Fatima Boolani of Citigroup, with Brad Zelnick to follow. Go ahead.

Fatima Boolani -- Citi -- Analyst

Good afternoon. Thanks for taking my questions. Nikesh, this one's for you. You were pretty explicit that you are having realistic conversations with customers about payment terms and extensions and financial circumstances as most organizations focus maybe more on cash flow preservation than they had in the past.

So, maybe to specifically ask, it's not very apparent in your numbers that you're having those types of conversations. So, A, how are you managing to circumvent a lot of that? And how is Palo Alto Financial Services as a financing vehicle maybe helping you drive a lot of those conversations that's not apparent to us?

下午好。 感謝您回答我的問題。 Nikesh，這是給你的。 您非常明確地表示，您正在與客戶就付款條件和延期以及財務狀況進行現實的對話，因為大多數組織可能比過去更關注現金流的保護。

所以，也許要具體問一下，從你的數字來看，你正在進行那些類型的對話並不是很明顯。 那麼，A，你是如何設法規避很多這樣的事情的？ Palo Alto Financial Services 作為一種融資工具如何幫助您推動許多對我們來說並不明顯的對話？

Nikesh Arora -- Chairman and Chief Executive Officer

Good.

Fatima Boolani -- Citi -- Analyst

Good.

Nikesh Arora -- Chairman and Chief Executive Officer

It means we are doing a good job of managing our cash flow margins and making sure our customers are happy. And this very rarely do I get to make both shareholders and customers happy at the same time. So, it's one of those moments. Look, on a more serious note, yes, you're right.

We are having those conversations. And I'd say Dipak and his team doing a phenomenal job in making sure that our sales teams are supportive when the customer is talking about payment terms, annual billing plans, or specifically using PANFS. So, I'm going to pass over to Dipak and explain how he's walking the tightrope and making sure that we're doing this effectively with our customers. I will say, we're blessed because, as Dipak highlighted, we have $6.2 billion of cash on our balance sheet.

So, we have the capacity to be able to do this for our customers. But Dipak?

這意味著我們在管理現金流利潤率和確保客戶滿意方面做得很好。 我很少能同時讓股東和客戶都滿意。 所以，這是其中一個時刻。 看，更嚴肅地說，是的，你是對的。

我們正在進行這些對話。 我想說 Dipak 和他的團隊在確保我們的銷售團隊在客戶談論付款條件、年度計費計劃或專門使用 PANFS 時提供支持方面做得非常出色。 因此，我將轉交給 Dipak，並解釋他是如何走鋼絲的，並確保我們與客戶有效地做到這一點。 我會說，我們很幸運，因為正如 Dipak 強調的那樣，我們的資產負債表上有 62 億美元的現金。

因此，我們有能力為我們的客戶做到這一點。 但是迪帕克？

Dipak Golechha -- Chief Financial Officer

Yeah. No, I think I would just say that it's been very selective and very purposeful looking at the actual customer interaction. We have a whole team that are very experienced at this. We brought a lot of people in with external experience.

And it really is a case-by-case piece here, but that's how you keep it like very selective and strategic. And that's the only time we really use it.

是的。 不，我想我只想說，在實際客戶互動中，它是非常有選擇性和非常有目的的。 我們有一個在這方面非常有經驗的團隊。 我們引進了很多具有外部經驗的人。

這確實是一個個案，但這就是你如何保持它的選擇性和戰略性。 那是我們真正使用它的唯一一次。

Clay Bilby

All right. Great. Our next question from Brad Zelnick of Deutsche Bank, followed by Tal Liani. Go ahead, Brad.

好的。 偉大的。 我們的下一個問題來自德意志銀行的 Brad Zelnick，隨後是 Tal Liani。 來吧，布拉德。

Brad Zelnick -- Deutsche Bank -- Analyst

Great. Thank you very much, and congrats, Nikesh and team. Great, great job. Nikesh, Palo Alto Networks is far more than a hardware company.

And that's --

太好了，非常感謝，並祝賀 Nikesh 和團隊。 太好了，幹得好。 Nikesh，Palo Alto Networks 不僅僅是一家硬件公司。

那就是——

Nikesh Arora -- Chairman and Chief Executive Officer

Oh, my God, Brad. You're reminding me of the meeting we had four and a half years ago in my office. Go on.

哦，我的上帝，布拉德。 你讓我想起了四年半前我們在我辦公室舉行的會議。 繼續。

Brad Zelnick -- Deutsche Bank -- Analyst

I'm so glad that I left that impression on you, Nikesh. I'm still waiting for the artwork, by the way. You can see behind here. It's still -- even though I'm in front of the building, it's a bit sparse.

But good to see you. So, far more than a hardware company today that's on full display, but you've down-ticked on your industry hardware growth expectations from what you said last quarter. I believe last quarter, you said 5% to 8%. Now you're saying low to mid-single digit.

我很高興我給你留下了這樣的印象，Nikesh。 順便說一句，我還在等待藝術品。 你可以在這裡看到後面。 它仍然 - 即使我在建築物前面，它還是有點稀疏。

但很高興見到你。 因此，今天不僅僅是一家全面展示的硬件公司，而且您已經從上個季度所說的中，下調了您對行業硬件增長的預期。 我相信上個季度，你說的是 5% 到 8%。 現在你說的是低到中個位數。

I don't know if it's immaterial difference, but I noticed the difference. If anything, what's changed at all in your market view? How should we expect your hardware business to perform versus market? And what would you say, Nikesh, to a skeptic that's perhaps skeptical that a lot of the success you see in everything else in next-gen is riding along on -- and opportunities created when a salesperson shows up and is selling hardware? I guess how much of that motion is happening away from hardware that we should appreciate? Thanks.

我不知道這是否是無關緊要的差異，但我注意到了差異。 如果有的話，您的市場觀點發生了什麼變化？ 我們應該如何期望您的硬件業務相對於市場表現？ Nikesh，對於一個懷疑論者，你會怎麼說，這個懷疑論者可能懷疑你在下一代的其他一切中看到的許多成功正在繼續 - 以及當銷售人員出現並銷售硬件時創造的機會？ 我想有多少動作是在我們應該欣賞的硬件之外發生的？ 謝謝。

Nikesh Arora -- Chairman and Chief Executive Officer

So, Brad, I think it's important to understand that we have a very large installed base. We have 62,000 customers who deploy Palo Alto firewalls. And let's just say, in my four and a half years at Palo Alto, I don't know any customer has decommissioned us yet. So, I think that the solution of the hardware is not being deployed or not being used is not true.

So, there is hardware improvements for our customers. Even though somebody may not be buying hardware, a lot of our subscription growth, our ELA growth, is driven by the fact that people have hardware, which they are extending the software capabilities on and buying more software capabilities from us. So, it's not just that a salesperson shows up only to sell hardware, they actually show up to deploy more security capabilities on the software front. And couple that in the case of SASE, if you look at our large pipeline, it's clearly driven by a customer of Palo Alto, who is a firewall customer, or a potential SASE customer who's saying, listen, I know your security services, I know your Zero Trust policies, I want to be able to expand into it and deploy a full end-to-end SASE solution or a Zero Trust solution for you.

所以，布拉德，我認為了解我們擁有非常龐大的安裝基礎非常重要。 我們有 62,000 名客戶部署了 Palo Alto 防火牆。 這麼說吧，在我在帕洛阿爾託的四年半時間裡，我不知道有任何客戶讓我們退役了。因此，我認為硬件未部署或未使用的解決方案是不正確的。

因此，我們的客戶需要進行硬件改進。即使有人可能不購買硬件，但我們的訂閱增長和 ELA 增長的很大一部分是由人們擁有硬件這一事實推動的，他們正在擴展軟件功能並從我們這裡購買更多軟件功能。因此，銷售人員不僅僅是為了銷售硬件而出現，他們實際上是為了在軟件方面部署更多的安全功能。結合 SASE 的情況，如果你看一下我們的大型管道，它顯然是由 Palo Alto 的客戶驅動的，他是防火牆客戶，或者潛在的 SASE 客戶說，聽著，我知道你的安全服務，我 了解您的零信任策略，我希望能夠擴展它並為您部署完整的端到端 SASE 解決方案或零信任解決方案。

So, I guess I'm trying to say is that our success in software is not hardware-dependent. All I'm highlighting is that I believe that the market was very confused last year with supply chain. You couldn't get chips. There were orders being made.

Customers are getting jittery, saying, I have capacities, I might need more hardware. So, a whole bunch of conflation of effects that happened hardware. I have constantly maintained that hardware grows. The industry grows at low to mid-single digits.

You noticed that perhaps a slight downtick in my expectations, and that's probably fair. You're perceptive. But I don't think it changes the overall outcome for us as a company. I do worry about people who are purely hardware-focused who don't have the ability to position a solution which includes software.

所以，我想我想說的是，我們在軟件方面的成功與硬件無關。 我要強調的是，我認為去年市場對供應鏈非常困惑。 你拿不到籌碼。 有人在下命令。

客戶變得緊張不安，說，我有能力，我可能需要更多硬件。 因此，硬件產生了一大堆效果。 我一直認為硬件在增長。 該行業以中低個位數增長。

你注意到我的預期可能略有下降，這可能是公平的。 你很敏銳。 但我認為這不會改變我們公司的整體結果。 我確實擔心那些完全專注於硬件的人沒有能力定位包含軟件的解決方案。

I'll give you an example. A large retailer comes to us and say, I'd like to deploy a SASE solution across my entire retail base. I'd like to upgrade. I want to do AR, VR for my store.

I want to go get more bandwidth in there. Technically, there are multiple ways to solve the problem. What you do is sell firewalls and say, hey, put a bigger firewall in your store. And I can deliver SASE because I have security capability.

我給你舉個例子。 一家大型零售商來找我們說，我想在我的整個零售基地部署一個 SASE 解決方案。 我想升級。 我想為我的商店做 AR、VR。

我想在那裡獲得更多帶寬。 從技術上講，有多種方法可以解決這個問題。 你所做的是銷售防火牆，然後說，嘿，在你的商店裡放一個更大的防火牆。 我可以交付 SASE，因為我有安全能力。

I can say, put an SD-WAN box in there, go deploy a lot of bandwidth in there, and do a software-based SASE implementation. A, it's going to be much easier to replace software in there, upgrade software. I take care of that for you. B, it's more secure because you have the most latest upgraded software available right away.

Three, it's scalable. You can improve your bandwidth requirement and security requirements over time. And D, for me, it's great because it's two and a half times more valuable for me to have you deploy SASE than put a box which I'd have to keep sending a truck every year to try and sort of upgrade this offer.

我可以說，在那裡放一個 SD-WAN 盒子，在那裡部署大量帶寬，並進行基於軟件的 SASE 實施。 答，在那裡更換軟件、升級軟件會容易得多。 我會替你處理的。 B，它更安全，因為您可以立即獲得最新的升級軟件。

第三，它是可擴展的。 隨著時間的推移，您可以提高帶寬要求和安全要求。 D，對我來說，這很棒，因為對我來說，讓你部署 SASE 比放一個盒子更有價值兩倍半，我每年都必須繼續發送卡車來嘗試升級這個產品。

Brad Zelnick -- Deutsche Bank -- Analyst

Makes perfect sense to me. Keep up the good work. Thank you.

對我來說很有意義。 保持良好的工作。 謝謝。

Nikesh Arora -- Chairman and Chief Executive Officer

Thanks, Brad.

Clay Bilby

Great. Next question from Tal Liani of BofA, followed by Keith Bachman. Go ahead, Tal.

Tal Liani -- Bank of America Merrill Lynch -- Analyst

I wanted to ask you about the difference between revenue growth billing and deferred revenue. You increased the guidance for deferred and billings that are very, very strong. We see less of an increase in revenue. What are the dynamics going forward?

我想問你關於收入增長計費和遞延收入之間的區別。 您增加了對非常非常強大的延期和賬單的指導。 我們看到收入增長較少。 前進的動力是什麼？

Nikesh Arora -- Chairman and Chief Executive Officer

I'm going to let Dipak answer, but I will recommend you to try Dali. And you might be able to create a parallel poster award, and we'll have to figure out who did which one.

我會讓 Dipak 回答，但我建議你試試看 Dali。你可能可以創建一個平行的海報獎項，然後我們就必須找出是誰做了哪一個。

Dipak Golechha -- Chief Financial Officer

Yeah. Look, Tal, I think at the end of the day, like we are an enterprise company. And as you see in our guidance, like we have a large Q4 guidance with a lot of customers sweating assets, as Nikesh mentioned in our -- in his script. I think we're just trying to reflect that in our latest forecast, which is what drives the guidance.

And so, if you have people sweating assets, we don't know exactly what will fall in which quarter, and that's what drives the revenue.

是的。Tal，我認為最終我們是一家企業公司。正如您在我們的指引中所看到的那樣，我們有一個大的 Q4 指引，有很多客戶正在進行資產擠壓，就像 Nikesh 在他的腳本中提到的那樣。我們只是在試圖反映這一點在我們最新的預測中，這也是推動指引的因素。

因此，如果您的人員正在進行資產擠壓，我們不知道哪些資產會在哪個季度出現，這就是推動收益的因素。

Nikesh Arora -- Chairman and Chief Executive Officer

Yeah. Well, I think just to make sure that you don't -- we don't mix the forest from the trees. We are seeing better growth across our business on a TCV basis across our customers. That's driving the billings growth, which obviously then falls into revenue, both short-term and long-term and deferred.

I think what you're seeing is the higher mix of software in our expectations going forward, which makes it more ratable over time. It gives us more creditability. Hence, the revenue looks consistent with expectations, and you see the software part, which is sitting in deferred grow faster.

是的。好的，我認為只是要確保你們不要將大局與細節混淆。在我們的客戶中，我們看到了 TCV 方面的更好增長，這推動了訂閱收費的增長，顯然這些增長落實為收入，包括短期和長期以及待發。

我認為您現在看到的是我們未來預期中軟件比重更高，這使其隨著時間更可預測。這給了我們更多的可信度。因此，收入與預期保持一致，您可以看到軟件部分在待發中增長更快。

Dipak Golechha -- Chief Financial Officer

Certainly, on SASE, that is the most --

當然，在 SASE 上，這是最多的——

Tal Liani -- Bank of America Merrill Lynch -- Analyst

That makes sense.

這就說得通了。

Clay Bilby

All right. Great. Thanks. Our next question from Keith Bachman of BMO, followed by Patrick Colville.

好的，太好了。謝謝。我們的下一個問題來自 BMO 的 Keith Bachman，隨後是 Patrick Colville。

Go ahead, Keith.

Keith Bachman -- BMO Capital Markets -- Analyst

Many thanks. Good afternoon. Good evening. I wanted to ask you, Nikesh, about Cortex, if I could, more broadly, and I'll break it in two parts.

The Cortex journey, the results have been solid, not just this quarter, but for some period of time now. And, A, on the competitive front, we've been hearing a lot of discussion from some of the leading vendors that pricing has become much more material in winning share of the Crowdstrikes or what have you. It doesn't appear that that's the case at all in your results from the growth rates and the profitability. So, I just want to hear a little bit about pricing.

And then more broadly on just the competitive dynamics on your results, and you mentioned $100 million kind of run rate on XSIAM, how has the portfolio helped shaping this outcome as you look out over the horizon over the next number of quarters in Cortex?

非常感謝。 下午好。 晚上好。 Nikesh，我想問你關於 Cortex 的問題，如果可以的話，我會更廣泛地問你，我會把它分成兩部分。

Cortex 的旅程，不僅在本季度，而且在現在的一段時間內，結果都很穩固。 而且，A，在競爭方面，我們已經從一些領先的供應商那裡聽到了很多討論，即定價在贏得 Crowdstrikes 或你擁有的份額方面變得更加重要。 從增長率和盈利能力來看，你的結果似乎完全不是這種情況。 所以，我只想听聽一些關於定價的信息。

然後更廣泛地討論你的結果的競爭動態，你提到了 XSIAM 的 1 億美元的運行率，當你展望未來幾個季度的 Cortex 時，投資組合如何幫助塑造這一結果？

Nikesh Arora -- Chairman and Chief Executive Officer

So, Keith, that's a great question. And I'm hesitating on my own analogy, so I was going to give you because I don't think we should print that. It's clear -- I don't want to put a word against our Cortex business. First and foremost, look, I've always maintained that the opportunity in the security market arises when there's an inflection point.

And I think the endpoint industry went through an inflection point a few years ago when we saw the emergence of EDR and XDR players. And you saw that, I'd say, perhaps the normalization of pure endpoint antivirus-type players in the market. And what's happened is if you look at the evolution, we've gone from a few endpoint players to many, and you're beginning to see convergence again down to two or three people. And I'd say that we are one of the three growing XDR vendors where customers are choosing us.

所以，基思，這是一個很好的問題。 我對自己的類比猶豫不決，所以我打算給你，因為我認為我們不應該打印它。 很明顯——我不想對我們的 Cortex 業務發表意見。 首先，看，我一直認為，當出現拐點時，安全市場的機會就會出現。

我認為端點行業在幾年前經歷了一個轉折點，當時我們看到了 EDR 和 XDR 播放器的出現。 你看到了，我想說，也許是市場上純端點防病毒類型播放器的正常化。 發生的事情是，如果你看一下演變，我們已經從幾個端點玩家變成了很多，你開始再次看到融合到兩三個人。 我要說的是，我們是客戶選擇我們的三個成長中的 XDR 供應商之一。

We have one of the best POC outcomes across the entire market vis-a-vis other players. So, I'd say today, if you're looking for an XDR outcome, there's possibly two or three vendors always in the fray are beginning to see ourselves to. That was not the case three years ago. That was not the case two years ago.

So, we're happy with our position, I think, one. Two, XDR is a pipeline business because it's pretty consistent. To your point about pricing, the deal sizes are pretty consistent, and they're sort of in a range, and you got to have a lot of deals to your pipeline and get some conversion going from them. Cloud and SASE can be big.

與其他參與者相比，我們在整個市場上擁有最好的 POC 結果之一。 所以，我今天要說的是，如果你正在尋找 XDR 結果，可能有兩三個供應商總是在競爭中開始看到我們自己。 三年前情況並非如此。 兩年前情況並非如此。

所以，我們對我們的立場感到滿意，我認為，一個。 第二，XDR 是一種管道業務，因為它非常穩定。 就你關於定價的觀點而言，交易規模非常一致，而且它們在一定範圍內，你必須對你的渠道進行大量交易並從中獲得一些轉化。 Cloud 和 SASE 可以很大。

I sell a $40 million cloud deal, $40 million SASE deal. I don't have $40 million XDR deals. They're all in the same swim lane, and you can substitute one for the other. And we see consistent growth.

Now, where I think our secret sauce is kicking in and should kick in is XSIAM only works with XDR. And what's interesting is we've seen very early, we've had 15 customers of XSIAM in the last 12 weeks, and they're all north of $1 million. Very early, we're seeing customers saying, I'd like XSIAM. And we're saying, listen, you can only get XSIAM if you're going to buy XDR.

我賣出了 4000 萬美元的雲交易，4000 萬美元的 SASE 交易。 我沒有 4000 萬美元的 XDR 交易。 它們都在同一條泳道上，你可以用一個代替另一個。 我們看到了持續的增長。

現在，我認為我們的秘訣正在發揮作用並且應該發揮作用的地方是 XSIAM 僅適用於 XDR。 有趣的是，我們很早就看到，在過去的 12 週內，我們有 15 位 XSIAM 客戶，他們的收入都在 100 萬美元以上。 很早的時候，我們就看到客戶說，我想要 XSIAM。 我們說，聽著，只有購買 XDR 才能獲得 XSIAM。

So, we're beginning to see there's a pull because of an outcome-based oriented XSIAM. Again, as I said to Hamza, don't get ahead of your skis. This is a shift we're trying to engender in the industry, but we think that the way to drive XDR for us in the long term is going to be by creating the best security outcome in the SoC for the customer. But they realize I need good data.

The only way I get good data is to Palo Alto, XDR, which allows us to go create the security outcomes in XSIAM. So, that's our approach. Until then, we're just going to keep our head down, grind at the pipeline, make sure we can win the deals. But for us, we're headed for the bigger price because I can do a lot of XSIAM business where I can XDR seed it into my customers.

因此，我們開始看到以結果為導向的 XSIAM 產生了吸引力。 再說一次，正如我對哈姆扎所說，不要超越你的滑雪板。 這是我們試圖在行業中促成的轉變，但我們認為，從長遠來看，為我們推動 XDR 的方式將是為客戶在 SoC 中創造最佳安全結果。 但他們意識到我需要好的數據。

我獲得優質數據的唯一途徑是前往 Palo Alto、XDR，這使我們能夠在 XSIAM 中創造安全成果。 所以，這就是我們的方法。 在那之前，我們只是要低著頭，磨礪管道，確保我們能贏得交易。 但對我們來說，我們正朝著更高的價格前進，因為我可以做很多 XSIAM 業務，在那裡我可以將 XDR 植入我的客

So, XDR pricing is less contentious for me. It's more interesting for me to get the right customer in XDR. So, you noticed there's a certain part of the market we play in. We don't play in the low to mid-end of the market in XDR.

We don't have 500 customer -- 500 user customers. We like to get the 10,000, 15,000, the higher end of the XDR customers because we think that is a high transfer into XSIAM in the future. And we've been doing that consistently for the last few years trying to build that base. So, as when the XSIAM is ready, we can start encouraging our customers to evolve from XDR to XSIAM.

因此，XDR 定價對我來說爭議較小。 在 XDR 中找到合適的客戶對我來說更有趣。 所以，您注意到我們參與了市場的某個部分。我們不參與 XDR 的中低端市場。

我們沒有 500 個客戶——500 個用戶客戶。 我們希望獲得 10,000、15,000 以及更高端的 XDR 客戶，因為我們認為這是未來向 XSIAM 的高轉移。 在過去的幾年裡，我們一直在努力建立這個基礎。 因此，當 XSIAM 準備就緒時，我們可以開始鼓勵我們的客戶從 XDR 發展到 XSIAM。

Clay Bilby

Next is Patrick Colville of Scotiabank, followed by Matt Hedberg. Go ahead, Pat.

接下來是 Scotiabank 的 Patrick Colville，然後是 Matt Hedberg。 繼續，帕特。

Patrick Colville -- Scotiabank -- Analyst

Hi, guys. Thank you for taking my question. And it's good to be back. So, I want to ask about margin.

So, I mean, really impressive to see what you guys printed in the margin. I mean, looking at the numbers for fiscal second quarter. To me, the two most important levers were the product gross margin and the sales and marketing kind of costs that were moderated. I guess as we think about the remainder of the year, how should we model out those two levers? So, should we continue to expect less incremental pressure from supply chain costs on the product GMs? And how far can this S&M efficiency go?

嗨，大家好。 謝謝你提出我的問題。 很高興回來。 所以，我想問一下保證金。

所以，我的意思是，看到你們在頁邊打印的內容真的令人印象深刻。 我的意思是，看看第二財季的數字。 對我來說，兩個最重要的槓桿是產品毛利率和銷售和營銷類成本得到緩和。 我想當我們考慮今年剩下的時間時，我們應該如何模擬這兩個槓桿？ 那麼，我們是否應該繼續期望產品 GM 的供應鏈成本增加的壓力較小？ 這種 S&M 效率能走多遠？

Nikesh Arora -- Chairman and Chief Executive Officer

Well, I think, Patrick, first of all, is Dipak made your life easier by giving you an operating margin guidance for the year. So, you don't have to worry about the component parts. So, you can just look at the total and have a wonderful time. Save you some modeling at Palo Alto.

So, that notwithstanding, I think between Dipak and I, we've both said that -- I contemplated putting this in our earnings script. I had a meeting with an investor. Dipak and I had a meeting for hours about six to seven months ago. And they took us through the brute force of profitability and margins and margin expansion and long-term EPS for Palo Alto.

好吧，我認為，帕特里克，首先，Dipak 通過為您提供當年的營業利潤率指導，讓您的生活更輕鬆。 因此，您不必擔心組件。 所以，你可以只看總數，玩得開心。 為您節省一些在帕洛阿爾託的建模。

因此，儘管如此，我認為在 Dipak 和我之間，我們都說過——我考慮將其放入我們的收益腳本中。 我與一位投資者會面。 大約六到七個月前，我和 Dipak 開了幾個小時的會。 他們帶領我們經歷了帕洛阿爾託的盈利能力和利潤率以及利潤率擴張和長期每股收益的強大力量。

And the other day, Dipak and I looked at each other and say, you know what, growth is important, but growth -- profitable growth is even more important. And I'd say there's a series of programs that Dipak has been running over the last six months, which include looking at gross margin across all of our products, looking at our spend across categories, looking at headcount. So, this is a sustained program we have in place. We're going to moderate our way through it to make sure that we don't impact our ability to generate the right amount of growth and right amount of profitable growth.

But I think the thing I'll leave you with is that we've given the guidance for the full year for operating margin, how it's going to evolve. We think it's a very good place compared to where we were expecting to be right now. And I think we've also given you hope that we don't believe this is the end. We believe we can keep improving from here.

So, for now, that's all we're going to say.

前幾天，迪帕克和我看著對方說，你知道嗎，增長很重要，但增長——盈利增長更為重要。 我想說 Dipak 在過去六個月中一直在運行一系列程序，其中包括查看我們所有產品的毛利率，查看我們跨類別的支出，查看員工人數。 因此，這是我們實施的一項持續計劃。 我們將通過它來緩和我們的方式，以確保我們不會影響我們產生適量增長和適量盈利增長的能力。

但我想我要留給你的是，我們已經給出了全年營業利潤率的指導，以及它將如何發展。 與我們現在預期的位置相比，我們認為這是一個非常好的地方。 我想我們也給了你希望，我們不相信這是結束。 我們相信我們可以從這裡不斷改進。

所以，現在，這就是我們要說的。

Patrick Colville -- Scotiabank -- Analyst

All right. Thank you so much.

Clay Bilby

All right. Next, we've got Matt Hedberg of RBC followed by Jonathan Ho. Go ahead, Matt.

好的。 接下來是 RBC 的 Matt Hedberg，隨後是 Jonathan Ho。 來吧，馬特。

Matt Hedberg -- RBC Capital Markets -- Analyst

Cool. Thanks, guys. Congrats from me as well. Nikesh, I have to go back to SASE.

I mean, the 50% growth in ARR off of a large base is impressive. And you guys took a different approach this year in terms of integrating your core firewall and your SASE sales force. Can you talk about the strides in those conversations into the other sort of 50,000 firewall customers that aren't SASE customers? How does that discussion go? And if -- just because it feels like such a marriage that makes so much sense from a cross-sell perspective?

酷，多謝你們。 我也祝賀你。 Nikesh，我必須回到 SASE。

我的意思是，大基數的 ARR 增長 50% 令人印象深刻。 你們今年在集成核心防火牆和 SASE 銷售人員方面採取了不同的方法。 您能談談在那些不是 SASE 客戶的 50,000 名防火牆客戶的對話中取得的進步嗎？ 討論進展如何？ 如果——只是因為從交叉銷售的角度來看，這種婚姻感覺很有意義？

Nikesh Arora -- Chairman and Chief Executive Officer

Yes. Matt, look, I think a happy firewall customer is a customer who at least has a good feeling about Palo Alto. And I think if they've deployed our security services, they're even better because they know how those security capabilities work. And now we're working through each of these customers trying to work with them on their Zero Trust strategy.

SASE is generally a long lead time, long conversation because it's not just security. I think the part which sometimes gets lost in this -- in some of the analysts, is that SASE is actually -- you're taking -- say, the firewall, I give you a firewall, you run the firewalls in your network, it's all good. You run your growing product. In SASE, I run your network.

是的。 馬特，你看，我認為一個快樂的防火牆客戶是至少對帕洛阿爾託有好感的客戶。 而且我認為，如果他們部署了我們的安全服務，他們會更好，因為他們知道這些安全功能是如何工作的。 現在我們正在與這些客戶中的每一個合作，試圖與他們合作制定他們的零信任戰略。

SASE 通常是一個很長的準備時間，很長的對話，因為它不僅僅是安全性。 我認為在某些分析師中有時會丟失的部分是 SASE 實際上是 - 你正在使用 - 比如說，防火牆，我給你一個防火牆，你在你的網絡中運行防火牆， 都很好。 您運行不斷增長的產品。 在 SASE 中，我運行你的網絡。

I take the traffic from your laptop onto me, onto GCP, and route the traffic for you. So, now I'm part of your mission-critical capabilities. That means my network has to be strong, my latency has to be low, my availability has to be high. That's not a traditional question security CoIP companies have been asked.

They're not used to running networks. That's why I just fall off my chair when I keep hearing, there are seven other vendors building SASE solutions. I'm like, yes, good luck, learn how to run a network. So, there's no coincidence that we decided that we were not going to run the network.

我將流量從您的筆記本電腦轉移到我身上，轉移到 GCP 上，然後為您路由流量。 所以，現在我是你關鍵任務能力的一部分。 這意味著我的網絡必須強大，我的延遲必須低，我的可用性必須高。 這不是安全 CoIP 公司被問到的傳統問題。

他們不習慣運行網絡。 這就是為什麼當我不斷聽到有七家其他供應商構建 SASE 解決方案時，我從椅子上摔下來的原因。 我想，是的，祝你好運，學習如何運行網絡。 因此，我們決定不運行該網絡並非巧合。

We're going to write AWS and GCP on the network for us because that's what they do really well. And they have cloud capability with low latency. So, we've built our SASE stack, which runs now concurrently on GCP and AWS allowing us to give you availability, which is higher than those two individually. So, we think the long term.

That's the right answer, right? Now, clearly, we're not 11 years old in SASE. We're three and a half years old in SASE. So, there are some things which we get stumped on because there are features and capability we need to keep building because there are edge cases which had been brought to the forefront. That's where Lee and his team are doing a phenomenal job, continuing to keep us at the top of the sort of pyramid of that topic.

我們將在網絡上為我們編寫 AWS 和 GCP，因為這是他們做得很好的地方。 他們具有低延遲的雲功能。 因此，我們已經構建了我們的 SASE 堆棧，它現在在 GCP 和 AWS 上同時運行，允許我們為您提供比這兩個單獨更高的可用性。 所以，我們認為是長期的。

這是正確答案，對吧？ 現在，很明顯，我們使用 SASE 還不到 11 年。 我們在 SASE 已經三年半了。 所以，有些事情我們被難住了，因為我們需要繼續構建一些特性和功能，因為有些邊緣案例已經被帶到了最前沿。 這就是 Lee 和他的團隊所做的出色工作，繼續讓我們處於該主題金字塔的頂端。

We're working on some really exciting capabilities in the upcoming future. We'll inform you in the next upcoming quarters. But we feel very good about our SASE pipeline, our on-ramp. They're lumpy.

They're large deals. But there is product-market fit, and we're seeing success.

我們正在為即將到來的未來開發一些真正令人興奮的功能。 我們會在接下來的幾個季度通知您。 但是我們對我們的 SASE 管道，我們的入口感到非常滿意。 它們是塊狀的。

他們是大筆交易。 但是產品與市場相匹配，我們看到了成功。

Clay Bilby

All right. Our next question from Jonathan Ho of William Blair, followed by Saket Kalia. Go ahead, Jonathan.

好的。 我們的下一個問題來自 William Blair 的 Jonathan Ho，隨後是 Saket Kalia。 去吧，喬納森。

Jonathan Ho -- William Blair and Company -- Analyst

Congratulations. Just wanted to maybe start out, you've seen some tremendous large deal success this quarter. In terms of the platform consolidation discussions with customers, what are you seeing? And is there evidence of customers maybe standardizing on Palo Alto across multiple areas? What could drive that sort of trend over time? Thank you.

恭喜。 只是想開始，你在本季度看到了一些巨大的成功。 在與客戶的平台整合討論方面，您看到了什麼？ 是否有證據表明客戶可能在多個領域對 Palo Alto 進行標準化？ 隨著時間的推移，什麼會推動這種趨勢？ 謝謝。

Nikesh Arora -- Chairman and Chief Executive Officer

So, William, the reason we showcased the millionaire customers, the $5 million deals and the $10 million deal slide, is there's a journey. By the way, I'm going to send you a Palo Alto shirt, so you can at least wear that in this meeting. You can wear that other one other times. But anyway, so yes, we showed you a slide of $1 million and $5 million and $10 million because customers go through a journey.

And it's very rarely you walk into a fresh customer, and we convinced them to go spend tens of millions of dollars to this and consolidate. So, it's usually an evolutionary process where we've become the firewall vendor of choice. They go with us on SASE. They're working on cloud.

所以，William，我們展示百萬富翁客戶、500 萬美元的交易和 1000 萬美元的交易幻燈片的原因是，這是一段旅程。 順便說一下，我會送你一件 Palo Alto 襯衫，這樣你至少可以在這次會議上穿它。 你可以穿另一個。 但無論如何，是的，我們向您展示了 100 萬美元、500 萬美元和 1000 萬美元的幻燈片，因為客戶經歷了一段旅程。

你很少遇到新客戶，我們說服他們為此花費數千萬美元並進行整合。 因此，這通常是一個進化過程，我們已成為首選的防火牆供應商。 他們和我們一起使用 SASE。 他們在雲端工作。

They see the concurrence of cloud and SASE. They have XDR. They want to get to XSIAM. So, slowly and steadily, we are showing them the benefits of consolidation.

I'll tell you, us being leaders in 13 categories helps because the first time you used the word consolidation, the first reaction of the CIO or CISO is, wait a minute, I want the best stuff. I just don't want it because you have it. Then we say, wait a minute, our stuff is the best stuff, as well as it works together. So, it's a journey.

It is not something that is a panacea that every customer comes in and walks in, but our teams are now focused toward trying to evolve our customers down that path or across that journey, right? And that's why we can go out and do a deal. I think our largest deal this quarter is north of $75 million.

他們看到了雲和 SASE 的並發。 他們有 XDR。 他們想去 XSIAM。 因此，我們正在緩慢而穩定地向他們展示整合的好處。

我會告訴你，我們成為 13 個類別的領導者會有所幫助，因為你第一次使用整合這個詞時，CIO 或 CISO 的第一反應是，等一下，我想要最好的東西。 我只是不想要它，因為你擁有它。 然後我們說，等一下，我們的東西是最好的，而且可以協同工作。 所以，這是一段旅程。

這不是每個客戶進來和走進來的靈丹妙藥，但我們的團隊現在專注於努力讓我們的客戶沿著這條道路或整個旅程發展，對吧？ 這就是為什麼我們可以出去做一筆交易。 我認為我們本季度最大的一筆交易超過 7500 萬美元。

Clay Bilby

All right. Our next question from Saket Kalia of Barclays, followed by Joe Gallo. Go ahead, Saket.

好的。 我們的下一個問題來自巴克萊銀行的 Saket Kalia，隨後是 Joe Gallo。 去吧，Saket。

Saket Kalia -- Barclays -- Analyst

OK. Great. Hey, guys. Thanks for fitting me in.

Numbers speak for themselves, Nikesh. Maybe a question for you. A lot of excitement around XSIAM. Some interesting wins you called out as well in your AI section.

But maybe a strategic question for you. As you think ahead, maybe the next couple of years for XSIAM, how do you think that that will have started to disrupt the SIM market, either from a tech or a pricing perspective? And maybe just to flip that on its head a little bit, is it possible that tools like XSIAM maybe help expand the SIM market?

好的。 偉大的。 大家好。 謝謝你讓我適應。

數字不言自明，Nikesh。 也許有一個問題要問你。 XSIAM 周圍充滿了興奮。 您在 AI 部分也提到了一些有趣的勝利。

但也許對你來說是一個戰略問題。 正如您所想的那樣，也許在未來幾年 XSIAM，您認為這將如何開始擾亂 SIM 市場，無論是從技術還是定價的角度？ 也許只是稍微顛覆一下，像 XSIAM 這樣的工具是否有可能幫助擴大 SIM 卡市場？

Nikesh Arora -- Chairman and Chief Executive Officer

So, I think, Saket, the SIM market doesn't have a pricing problem. It has a value problem. I spent a lot of money. I don't get enough value.

And if you ask some of the customers out there, how do they use the SIM, SIM is used post breach or post event to figure out what happened. A SIM is not doing on-the-fly real-time blocking. So, when SolarWinds happens, Log4j happens, you can go to your SIM and look at where it happened and figure out and trace it back and try and block the hole. What it won't do for you is stop it mid-flight.

所以，我認為，Saket，SIM 市場沒有定價問題。 它有一個價值問題。 我花了很多錢。 我沒有得到足夠的價值。

而且，如果您詢問那裡的一些客戶，他們如何使用 SIM，SIM 用於在違規後或事件後查明發生了什麼。 SIM 不進行即時實時阻塞。 因此，當 SolarWinds 發生時，Log4j 發生時，您可以轉到您的 SIM 卡並查看它發生的位置並找出並追溯它並嘗試堵住漏洞。 它不會為您做的是在飛行途中停止。

And that's a paradigm shift as far as security is concerned. The only way you can do that and stop it mid-flight is analyzing data as it's being created. So, to us, the reason we call XSIAM not SIM is here's our words. We watch the data in flow.

We watch it coming from the endpoint. We cross-correlate mid-flight with firewall data. We go and triage it. We automate some of the alert, some of the noise away.

And we're looking at like real incidents between triage already, which are not being put in some large data lake, and then running query language against to see how do I solve the problem. They're already doing it in the back end. Now, of course, with the availability of new LLMs that are out there, which you all I'm sure have been talking about and dealing with in their free time, they do a lot more useful things than write poetry for your wife. They can actually analyze data to tell you what is anomalous and what is off pattern.

就安全而言，這是一種範式轉變。 您可以做到這一點並在飛行途中停止的唯一方法是在數據創建時對其進行分析。 所以，對我們來說，我們稱 XSIAM 而不是 SIM 的原因是我們的話。 我們觀察流中的數據。

我們從端點觀察它。 我們將飛行途中與防火牆數據交叉關聯。 我們去分類它。 我們自動化了一些警報，一些噪音。

我們正在研究分類之間的真實事件，這些事件沒有被放入某個大型數據湖，然後運行查詢語言以查看我如何解決問題。 他們已經在後端這樣做了。 現在，當然，隨著新法學碩士的出現，我相信你們所有人在空閒時間都在談論和處理這些，他們做的事情比為你妻子寫詩有用得多。 他們實際上可以分析數據來告訴你什麼是異常的，什麼是異常的。

And if you can figure that out, then what do you have to do? You have to go ahead and remediate it. How do you remediate it? You got to be a firewall to remediate a network. You've got to be an endpoint to remediate the endpoint. You got to be Prisma Cloud, remediate it in the cloud.

So, I think what XSIAM is going to do is going to bring real-time capability in the SOC, or real-time capability in security. It's early days. Again, I'm going to say -- keep repeating, in a repetition to not fall the prayer, don't get ahead of itself, but this is where we're heading. And if you can picture chat ChatGPT 10 years from now, picture AI and security 10 years from now.

You will not have humans trying to analyze because it'd be too hard for humans to analyze petabytes of data. Already, the data in an organization is too much for a security analyst to analyze.

如果你能解決這個問題，那麼你必須做什麼？ 您必須繼續進行補救。 你如何修復它？ 您必須是防火牆才能修復網絡。 您必須成為端點才能修復端點。 你必須成為 Prisma Cloud，在雲中修復它。

所以，我認為 XSIAM 要做的是在 SOC 中帶來實時能力，或者在安全方面的實時能力。 現在還早。 再說一次，我要說——不斷重複，不斷重複，不要落空禱告，不要超越自己，但這就是我們前進的方向。 如果你能想像 10 年後的聊天 ChatGPT，想像 10 年後的 AI 和安全。

您不會讓人類嘗試分析，因為人類分析 PB 級數據太難了。 組織中的數據已經太多，安全分析師無法分析。

Clay Bilby

All right. Great. Next question from Joe Gallo of Jefferies, followed by Ben Bollin of Cleveland. Go ahead, Joe.

好的，Jefferies 的 Joe Gallo 提出下一個問題，然後是克利夫蘭的 Ben Bollin。 去吧，喬。

Joe Gallo -- Jefferies -- Analyst

Hey, guys. Thanks for the question. Can you just comment on the execution in cloud security despite the backdrop of hyperscaler growth moderation? And then maybe more importantly, where customers are in the journey to cloud security consolidation? It still feels like the Wild West of a lot of disparate products in that category. When does that market merge, which I'd imagine benefits to? Thanks.

大家好。 謝謝你的問題。 在超大規模增長放緩的背景下，您能否評論一下云安全的執行情況？ 然後也許更重要的是，客戶在雲安全整合之旅中處於什麼位置？ 它仍然感覺像是該類別中許多不同產品的狂野西部。 該市場何時合併，我認為這會帶來好處？ 謝謝。

Nikesh Arora -- Chairman and Chief Executive Officer

Thanks, Joe. So, two quick answers. One, we're still the largest player with north of 2,000 customers in cloud security. I don't know if you explicitly called it out, but our largest cloud security was $40 million this past quarter.

I don't know any other vendor in the cloud security space who's doing half of that in a quarter in one deal. So, yes, there are many small players out there, but we've seen a bit of churn in the market where some small players have kind of been acquired and gone. Does that mean we'll be the only player? No, there'll be other players in the medium term, but we feel comfortable that there are people who are consolidating. It feels like the Wild West because customers are still not fully in the full cloud security platform mold.

謝謝，喬。 所以，兩個快速的答案。 第一，我們仍然是最大的參與者，在雲安全領域擁有超過 2,000 名客戶。 我不知道你是否明確指出，但我們上個季度最大的雲安全是 4000 萬美元。

我不知道在雲安全領域的任何其他供應商誰在四分之一的交易中完成了一半。 所以，是的，那裡有很多小玩家，但我們看到市場上有一些小玩家被收購和消失的情況。 這是否意味著我們將成為唯一的參與者？ 不，中期還會有其他參與者，但我們對有人正在整合感到欣慰。 感覺就像狂野的西部，因為客戶還沒有完全融入完整的雲安全平台模式。

So, they've not fully embraced the need to have all these things connected, but I think it's a matter of time and a matter of demonstration that it's going to happen. In terms of your question around where we are, and we talked about that in the prepared remarks around hyperscalers. Remember, the cloud security market is a few billion dollars. The hyperscalable market hundreds of billions of dollars.

Now the difference is when you commit to a hyperscaler, you commit that you're going to move, you're going to transition, you spend a lot of money. And a lot of that stuff sits in deferred revenue because they are not fully deployed, or customers haven't fully consumed. Cloud security applies to stuff that you consume, right? Like if you haven't consumed it, or you aren't ready to consume it, they're not going to be buying cloud security. So, I think we have a little bit of a gap in terms of when people commit to when they deploy it, to when they take cloud security.

所以，他們還沒有完全接受將所有這些東西連接起來的需要，但我認為這是一個時間問題，也是一個證明它會發生的問題。 關於你關於我們所處位置的問題，我們在準備好的關於超大規模器的評論中談到了這個問題。 請記住，雲安全市場規模為數十億美元。 超大規模市場規模達數千億美元。

現在不同的是，當你致力於超大規模時，你承諾你要搬家，你要過渡，你會花很多錢。 很多東西都屬於遞延收入，因為它們沒有完全部署，或者客戶沒有完全消費。 雲安全適用於您消費的東西，對嗎？ 如果你還沒有使用它，或者你還沒有準備好使用它，他們就不會購買雲安全。 因此，我認為我們在人們承諾何時部署它以及何時採取雲安全方面存在一點差距。

I just think that stuff can slow down for a while, but it's still got -- there's a lot of headroom for us to get from where we are. Even if we got to all the customers who are in deployment or are deployed, I think we should see a steady continued growth for Prisma Cloud. So, the market demand, to me, is not where the challenge is. The challenge for us or the opportunity is to go convince as many customers as we can that this is a platform play.

You have to consolidate across multiple modules. You have to have stuff talk to each other on a constant basis, otherwise, you end up in the same situation as you were in enterprise security many years ago.

我只是認為這些東西可以放慢一段時間，但它仍然有 - 我們有很大的空間可以從我們所在的地方獲得。 即使我們接觸到所有正在部署或正在部署的客戶，我認為我們也應該看到 Prisma Cloud 的穩定持續增長。 所以，對我來說，市場需求並不是挑戰所在。 我們面臨的挑戰或機會是讓盡可能多的客戶相信這是一個平台遊戲。

您必須跨多個模塊進行整合。 你必須讓東西不斷地相互交談，否則，你最終會陷入與多年前企業安全領域相同的境地。

Clay Bilby

Our last question today is from Ben Bollin of Cleveland Research. Go ahead, Ben.

我們今天的最後一個問題來自 Cleveland Research 的 Ben Bollin。 來吧，本

Ben Bollin -- Cleveland Research Company -- Analyst

Good afternoon, everyone. Thank you for taking the question. Nikesh, you've talked about some GSI opportunities in the past. I'm interested in how you see that channel developing.

What type of tail you see there? And how meaningful your platform is becoming for those partners? Thanks.

大家下午好。 謝謝你提出這個問題。 Nikesh，您過去曾談到過一些 GSI 機會。 我對您如何看待該渠道的發展很感興趣。

你在那裡看到什麼類型的尾巴？ 您的平台對這些合作夥伴的意義有多大？ 謝謝。

Nikesh Arora -- Chairman and Chief Executive Officer

Thanks, Ben. I used to say that about a year ago that I've had more CIO conversations in a quarter than I did in many years. I'd now say that about GSIs. I'd say in the last six months, I've had more GSI conversations than I had in the first five years of Palo Alto or four and a half years of Palo Alto, right? And the reason is GSIs are interested in transformation.

They're interested in where they can go into a customer and deploy a much better security outcome for them. We were not relevant as a firewall company with SASE, with cloud security, with now XSIAM, they see a real opportunity to go in and do some transformation for their customers. And transformation for them means revenue to them and means a solid product in the back. I'd say most GSIs are still early ish in their journey to build a full cybersecurity competency across the board.

謝謝，本。 大約一年前，我曾經說過，我在一個季度中與 CIO 的對話比多年來的都要多。 我現在要說的是 GSI。 我想說在過去的六個月裡，我與 GSI 的對話比我在帕洛阿爾託的頭五年或帕洛阿爾託的四年半還多，對吧？ 原因是 GSI 對轉型感興趣。

他們感興趣的是他們可以從哪裡進入客戶並為他們部署更好的安全結果。 作為防火牆公司，我們與 SASE、雲安全、現在的 XSIAM 無關，他們看到了一個真正的機會，可以為他們的客戶進行一些轉型。 對他們來說，轉型意味著收入，意味著背後有可靠的產品。 我想說的是，大多數 GSI 仍處於全面建立全面網絡安全能力的早期階段。

And there, they'd rather deal with lesser vendors than more. So, us being leaders in certain categories, plays into our strength and our ability to partner with them. I think you -- we are already, without specifically calling out deals, there are many deals where we are partnered with GSIs, where they are the front and we work with them to be as part of a larger transformation project, and we're seeing more and more of that.

在那裡，他們寧願與較少的供應商打交道，也不願與更多的供應商打交道。 因此，我們作為某些類別的領導者，發揮了我們的實力和與他們合作的能力。 我認為你 - 我們已經在沒有特別提出交易的情況下，有許多交易我們與 GSI 合作，他們處於前沿，我們與他們合作作為更大轉型項目的一部分，我們正在 看到越來越多。

Clay Bilby

With that, we conclude the Q&A portion of our call today. I'll turn it back over to Nikesh for his final remarks.

至此，我們結束了今天電話會議的問答部分。 我會把它轉回給 Nikesh，聽取他的最後評論。

Nikesh Arora -- Chairman and Chief Executive Officer

Look, first of all, I want to thank all of you for joining our call. I also want to thank our employees who work really hard toward delivering these results. I have to say six months ago, when we've started to see warning signs, we pivoted hard. We made sure that our teams got ahead of it, and they have delivered.

So, I want to thank all of them for their contribution. As I said, this is a challenging macro environment out there. And the only way we're going to get through this as Palo Networks is to keep our head down and execute. And that's what we intend to do.

Once again, thank you, guys, and see you next quarter.

首先，我要感謝大家加入我們的電話會議。 我還要感謝我們的員工，他們非常努力地工作以取得這些成果。 我不得不說六個月前，當我們開始看到警告信號時，我們努力調整了方向。 我們確保我們的團隊領先於它，並且他們已經交付了。

所以，我要感謝他們所有人的貢獻。 正如我所說，這是一個充滿挑戰的宏觀環境。 作為 Palo Networks，我們要度過難關的唯一方法就是低調執行。 這就是我們打算做的。

再次感謝你們，伙計們，下個季度見。