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: 69 actual Questions

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IBM IBM Fundamentals of Applying

vintage IBM 1403 Printer difficulty Evades an facile repair | killexams.com actual Questions and Pass4sure dumps

The computer historical past Museum in Mountain View has two operational IBM 1401 mainframes, which exhaust IBM 1403 excessive-velocity printers. They aren’t some many years-old concept of “high speed” that barely appears gradual nowadays, either. These monsters slam out ten lines per 2d thanks to a rotating chain of classification slugs and an array of electromagnetic hammers. each eleven.1 microseconds, a personality within the chain can subsist lined up with a hammer, and if the manage circuitry recognized it as a character that obligatory to subsist printed, the hammer behind the paper would obligate the paper into the print ribbon and the slug, inserting an imprint of the character onto the paper. When one of those printers failed with a sync error, it kicked off some severe troubleshooting to diagnose the problem.

The IBM 1403’s classification chain has a repeating set of characters that spins around at exorbitant pace. unlike a typewriter or label maker, the hammers aren't inner this unit. The hammers are on the outdoor, and work by urgent the paper onto the category slugs as the required characters line up.

Investigation of the issue sooner or later ended in an intermittent connection in a driver card because of a broken PCB trace, but by means of then some fuses had been blown as well. in the conclusion the printer became brought returned on-line, but probably with a a bit of damaged coil on one of the most hammers.

[Ken]’s writeup on the restore procedure is enormously minute and walks throughout the sort of troubleshooting and repairs concerned when fixing complications with feeble electronics. Electrical fundamentals can subsist the equal, but a deep knowing of no longer best the structure however furthermore the failure modes of antique hardware is needed to subsist able to troubleshoot effortlessly.

If IBM 1401 mainframes and fixing 1403 printers sounds conventional, it’s as a result of a printer fix has been performed earlier than. That was as a result of a different problem, but nonetheless a challenging assignment to slender down and fix.


A year of AI Transformation | killexams.com actual Questions and Pass4sure dumps

artificial Intelligence (AI) is poised to shift from being an emergent know-how into becoming mainstream and omnipresent. Two years ago, funding in AI had already reached well-nigh $40 billion global.1

AI adoption charges hovering, expertise carriers were racing to advance and present tall efficiency computing (HPC) infrastructure options that aid execute enforcing AI more convenient, reduce risk, and greater low-budget. IBM is no exception. In 2018, IBM established a brisk cadence of AI-linked reference architectures, culminating in the fresh announcement of IBM Spectrum AI with NVIDIA DGX, a tall efficiency solution that mixes trade acclaimed IBM Spectrum Scale software-defined storage with NVIDIA DGX-1 systems linked with Mellanox Infiniband networking. the novel respond offers the highest efficiency storage of any related system, 2 and helps any GPU accelerated server, including IBM AC922.

To achieve standard ranges of perception and accuracy, AI functions require entry to giant amounts of coaching facts and processing vigor. 3 Such requirements could execute the infrastructure transformation necessary to permit AI complicated, tall chance, and costly, hindering adoption. To address these challenges, in June 2018 IBM introduced the IBM methods Reference architecture for AI. in keeping with IBM PowerAI, IBM Spectrum Computing (the HPC-concentrated component), and IBM storage, this novel reference architecture presents a proven solution for AI computing and deep researching that simplifies advanced operations and reduces deployment and operational risk. Developed through realworld consumer experience, the IBM Reference structure for AI gives a finished e bespeak to aid groups create successful AI infrastructure proofs-of-theory, extend these into production, and then scale the options as necessary to accommodate AI utility and information increase.

In August, IBM introduced gasoline to its 2018 AI fireplace by means of proverb the IBM power methods Accelerated Computing Platform (IBM vigour ACP). at present, the two strongest AI-enhanced supercomputers on the earth – Summit at okayRidge and Sierra at Lawrence Livermore country wide Labs – are constructed from IBM vigour ACP facets. A key to those installations is the proven fact that they had been assembled the usage of simplest the identical commercially obtainable add-ons as organize in the IBM energy ACP offering. It’s an entire solution that contains IBM POWER9 servers; IBM Elastic Storage Server (ESS); networking, construction, and runtime application; and expert functions designed to assist any company without difficulty build the onpremises infrastructure mandatory to usher AI, HPC, and other compute-intensive workloads.

Headlining the IBM vigor ACP providing is the IBM vigour equipment Accelerated Compute Server – AC922 – the identical servers used within the Summit and Sierra CORAL supercomputers. AC922 is designed for commercial enterprise AI. With up to 1 TB of RAM, two 20-core IBM POWER9 processors, and up to 4 NVDIA Tesla GPUs related via NVLINK, the AC922 server can tackle the full latitude of annoying AI and HPC workloads.

via October, IBM Storage formalized the techniques it had already been offering to automobile producers into a solution known as IBM Storage for self sufficient riding. superior driver information programs and self sufficient using (advert) initiatives complete maintain one factor in middling – miles and miles of facts. Sources involve sensor records, climate records, satellite tv for pc facts, behavioral and different own facts, diagnostic records, and extra. each linked automobile generates from a number of megabytes to once in a while terabytes per automobile per day when that vehicle is a test automobile used to coach ad fashions. These connected-cars initiatives can generate storage demand for upwards of 200 exabytes of information each day throughout entire fleets. four The IBM Storage for advert respond is according to IBM Cloud expostulate Storage as a way to accommodate these colossal records streams, IBM Spectrum ascertain to enhance and control the file metadata, and IBM Spectrum Scale to provide comprehensive storage management and records capabilities – the identical storage software present in Summit and Sierra.

ultimately, in mid-December IBM announced IBM Spectrum AI with NVIDIA DGX. The solution offers the equipped-to-set up potent infrastructure and software that AI tasks should ramp up right now and develop confidently. Designed for NVIDIA DGX-1 techniques, IBM Spectrum Scale software-described storage, and Mellanox networking, IBM Spectrum AI with NVDIA DGX will furthermore subsist configured to fulfill present and starting to subsist organizational requirements. The NVIDIA DGX application stack includes entry to the latest in NVIDIA optimized containers by means of the NGC container repository, plus the brand novel RAPIDS framework to speed up records science workflow.

IBM Spectrum Scale may furthermore subsist deployed in configurations from a single IBM ESS to assist just a few GPU accelerated servers, to a full IBM Spectrum AI with NVIDIA DGX rack of 9 servers with seventy two NVIDIA V100 Tensor Core GPUs. And multi-rack configurations are feasible as well. in contrast to typical storage arrays, highly parallel IBM Spectrum Scale can grow basically linearly to feed diverse GPUs. The result is an respond that supplies AI workload efficiency from shared storage akin to that of local RAM disk. In an IBM Spectrum AI gadget, IBM Spectrum Scale on IBM NVMe glimmer has proven 120GB/s of data throughput, 5 enough to support distinctive users and varied AI fashions concurrently.

To subsist trained extra about IBM SpectrumAI with NVIDIA DGX, consult with this webpage and combine us for the January 29th webinar “building your AI records Pipeline with IBM SpectrumAI.”

IBM Spectrum Scale gives the flexibleness to tackle storage requirements across the complete AI facts pipeline – from ingest; via records classification, transformation, analytics, and model practicing; to statistics archiving. it could additionally give storage capabilities throughout diverse storage selections, including AWS public cloud. IBM Spectrum Scale can share information with IBM Cloud expostulate Storage and tape, with shared metadata functions provided via IBM Spectrum find.

When it comes to transforming AI from dreams into truth, 2018 became a great yr at IBM. The chief in AI technology announced novel AI reference architectures, released dissimilar AI infrastructure options throughout IBM techniques and now with NVIDIA, and even accelerated the evolution of self sustaining driving motors. up to now, AI remained in most cases inside the province of early expertise adopters, but now, that’s now not the case.

1 Datafloq: Why the Adoption cost of AI is increasing, may additionally 2018 https://datafloq.com/study/adoption-fee-ai-increasing/50442 FIO records throughput testing of 120GB/s and AI workloads efficiency compared to the self-reported consequences of other NVIDIA RA company partners https://www.nvidia.com/en-us/data-center/dgx-reference-structure/three TechTarget Whatis definition: deep learning (https://searchenterpriseai.techtarget.com/definition/deep-gaining information of-deepneural-community)four IBM solution quick: IBM Storage solutions for superior driver tips methods and self sufficient using, October 2018 (https://www-01.ibm.com/ordinary/ssi/cgi-bin/ssialias?htmlfid=34019934USEN) 5 IBM lab testing of IBM Spectrum Scale on three NMVe arrays the exhaust of 4k random reads driven with the aid of FIO on 9 NVIDIA DGX-1 systems connected with Mellanox EDR Infiniband


Why Did IBM promote Lotus and different application items to HCL? | killexams.com actual Questions and Pass4sure dumps

IBMIBM beefed up its business collaboration providing these days with an acquisition of XCC. photograph: Michael Coté

past this month, IBM and HCL announced a deal worth $1.8 billion, in which HCL will purchase a bunch of IBM application items. The transaction, anticipated to within sight mid-2019, addresses a potential market of more than $50 billion. The products consist of:

  •  Appscan for relaxed utility development.
  •  BigFix for comfortable device administration.
  •  Unica (on-premise) for advertising automation.
  •  Commerce (on-premise) for omnichannel eCommerce.
  •  Portal (on-premise) for digital experience.
  •  Notes & Domino for electronic mail and low-code rapid application building.
  •  Connections for workstream collaboration.
  • HCL and IBM maintain present partnerships for 5 of those items, two of which are core to the a number of business digital offices that maintain invested in Notes, Domino and Connections. The ecommerce providing is furthermore a key application for many. “The products they are buying are in huge starting to subsist market areas relish safety, advertising and commerce, which might subsist strategic segments for HCL. a lot of these items are smartly viewed by way of customers and located within the exact quadrant by using trade analysts,” HCL president and CEO C Vijayakumar referred to in a press release. “The significant-scale deployments of these items supply us with a superb break to attain and serve hundreds of global agencies throughout a wide array of industries and markets."

    despite the fact, the question everybody is asking is why did IBM promote, for the understanding that over the past 5 years it has in no way overlooked a chance to flaunt its application credentials? The sale was announced not lengthy after huge Blue purchased crimson Hat for an astounding $34 billion, leaving many to wonder if the HCL deal can subsist a means to cover a tiny a fraction of the cost. most likely, however that doesn’t address the primary problems and upheaval that IBM has been dealing with over the final three years.

    linked Article:  6 issues to know about IBM's $34B Acquisition of purple Hat

    promoting Legacy application

    Tony Byrne, analyst and founding father of precise myth neighborhood, has been looking at and writing about many of these equipment for the past 15 years. In his enterprise weblog, he outlined four take-aways from the deal:

  • Declining toolsets: RSG evaluates several of these offerings and that they complete had this in standard, they're normally legacy offerings, in long-term decline, based on Byrne.
  • funds in legacy: there is a business mannequin around acquiring ageing platforms and housing them greater or less to their death. This may furthermore subsist very profitable.
  • Licenses: It is not transparent that HCL in fact is watchful of how to execute effortlessly on the license model that IBM has used. amongst different things, will they now freeze out competing integration companions? 
  • strains continue to blur: the road between colossal outsourcing/integration enterprises and standard software companies has been getting blurry, and this just continues that vogue. features companies are envious of the recurring income streams that companies see, primarily with novel cloud models. 
  • MarketsandMarkets, a earnings influence research and advisory company focused on high-growth district of interest markets, stated that HCL’s goal is to movement away from a labor-intensive application functions business to an intellectual property (IP)-pushed business using the IBM products. The result is that IBM’s feeble salary blend has develop into HCL’s novel income combine.

    besides the fact that children, HCL administration has a great assignment forward proving it may well turn the received items of IBM into a lucrative investment for its stakeholders.

    related Article:  How Will the $34B IBM Acquisition maintain an result on purple Hat users? 

    Declining Revenues

    Francois Koutchouk is without doubt one of the middling participants of the Lotus Notes engineering team fashioned in 1989. As a groupware evangelist, product supervisor and technology associate recruiter, he had direct visibility into most tremendous agencies adopting Notes. Koutchouk stayed with IBM as a specialist after the acquisition, he then moved on to support companies acquire off Lotus Notes.

    Koutchouk pointed out one enjoyable talents of Lotus Notes is its resiliency: servers and consumers Run unattended for years. consequently, many shoppers quite simply opted to cease paying IBM for enhancements and support fees. Most additionally iced up evolution of Notes apps, drying out linked revenues for out of doors consultants relish IBM global functions and IBM companions.

    For neatly over 10 years most significant groups maintain feverishly tried to movement faraway from Notes. From an estimated 10 million apps at its top, the primary seven years saw a discount to 2 million or so apps — mostly through attrition and facile migrations to Microsoft SharePoint. The last apps are probably the most constructive, more complicated and harder to migrate because of the entertaining and proprietary expertise powering Notes. “What IBM did not inform HCL is that the final few years maintain seen the apparition of recent platforms more advantageous suited to migrate Lotus Notes apps and its users, similar to Salesforce and Microsoft PowerApps,” he observed. “This, combined with novel applied sciences to automate migrations, is dropping the count (and cost) of remaining apps at an unheard of cost. IBM is offloading Lotus Notes as a result of $1.8 billion is some huge cash for an installed groundwork racing to zero revenues in a yoke of years."


    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
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    : 69 actual Questions

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

    Image source: The Motley Fool.

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

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

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

    Good morning. Thanks for dialing in today for their fiscal second quarter 2019 earnings call. With me on the convoke 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 relish to remind everyone that statements made during this call, including in the question-and-answer session at the quit of the call, may involve forward-looking statements, including statements regarding pecuniary projections and future performance. complete 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 common 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 configuration 10-K and their most recent quarterly report in configuration 10-Q and their other SEC filings and in the cautionary statement contained in their press release and on their website. The company undertakes no responsibility to update the information in this conference convoke under any circumstance. In addition, the evolution 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 furthermore has been furnished to the SEC as an 8-K filing. The press release is furthermore 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 subsist organize in Table 4 accompanying the press release and posted on their website.

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

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

    Please furthermore note that in order to best discern the slides, they suggest enabling full screen slide mode within the webcast. In addition, the slides can furthermore subsist downloaded from the Commvault website under the Investor Relations page.

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

    I will now turn the convoke over to Bob.

    Thank you Mike, and genial morning, everyone and thank you for joining their fiscal second quarter FY '19 earnings call. On today's convoke they will dispute 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 maintain 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 fraction of their Commvault advance 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 last several quarters.

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

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

    The goals of Commvault advance are to establish a strong foundation to better revenue, while at the identical time achieving much improved operating margin leverage. The implementation was a culmin turning to their balance sheet and cash flows in the first quarter cash and short-term investments were partially 1.1 billion ation of a yoke of years of endeavor 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 advance related changes they made during the quarter, including reorganization of their sales and distribution organizations, which in fraction shifted a significant percentage of bailiwick resources to support their channel and alliance partners and major simplification of both products pricing to execute their solutions easier to both sell and buy.

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

    Based on the early results of these changes, they are already seeing improved momentum and maintain seen a sharp increase in funnel growth, strong order current in October and solid forecast from the field. However, given the early stage of their transformation, they device 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 buy odds of the major shift in the market and significantly improves their competence to execute their strategy and drive revenue and earnings growth.

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

    As data scale increases, they are furthermore well on their path to their exit by scale in their platform. They now maintain 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 transparent technology leader and migrating and managing data in the cloud with IBM's $35 billion acquisition of Redhat this weekend, there will subsist additional focus on cloud and Commvault is well positioned to buy 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 fraction of Advance, they are laser focused on improving their competence to accelerate revenues through a much stronger sales and distribution. These efforts maintain 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 factor of Commvault advance is to create and enhance expanded and simplified product portfolio, which includes product innovations that execute it easier for customers to install and exhaust their products and changes to packaging and pricing structures to execute 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 assist customers know their data and then ascertain and extract novel business insights from data under management whether that data is on-premise or in the cloud.

    All these products maintain built upon a common software and technology platform they convoke 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 subsist fully integrated with the HPE store once appliances. The integration will allow backup data to subsist moved natively to the cloud or back to on premise. They anticipate this integration to subsist available in November.

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

    We recently announced an expanded partnership with whereby NetApp is now a full 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 anticipate to discern significant funnel build and revenue progress with both HP and NetApp during Q3. They remain excited about the business break represented by their alliances with complete of these leading technology vendors and believe that these relationships will drive significant break for Commvault going forward.

    Let me talk about their transition to subscription pricing. birth 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 point to 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 yoke 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 balance 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 support to their customers. As they identified economies in their cost structure, they maintain not decreased their investment in R&D or customer support since their objective is to maintain their technological leadership position in the industry.

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

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

    Our competence to enable customers to rapidly current 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 advance 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 point to 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 great enterprises with the journey to the cloud and solutions to assist customers mitigate and retrieve from a cyber beset 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 support to their channel and strategic partners, combined with the introduction of novel innovative product offerings and pricing.

    In summary, the implementation of the Commvault advance 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 district for the company to execute and deliver improved pecuniary performance.

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

    Brian Carolan -- Vice President and Chief pecuniary Officer

    Thank you, Bob and genial morning everyone. In addition to covering the traditional pecuniary highlights for the second quarter of fiscal 2019, I will furthermore spend time updating you on the progress they maintain 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 furthermore 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 furthermore maintain made available a presentation on the Investor Relations section of their website and furthermore included this presentation in their 8-K filing. If you are on the webcast you can succeed along with these slides during my remarks.

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

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

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

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

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

    In addition, as they current through facet II of Commvault Advance, they remain focused on maintaining their technological leadership position in the industry. They execute not anticipate these operational initiatives to maintain an adverse impact their product evolution strategy.

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

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

    We anticipate that their diluted weighted middling share count for full year FY '19 will subsist 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 last six quarters has been very successful.

    For the sake of clarity and transparency, they are introducing two revenue metrics to assist 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 convoke 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. Slide 9 in their presentation includes a chart that summarizes revenue based on how it is recognized and if it is potentially repeatable, nearly complete of Commvault software and product revenue is related to solutions that are Run in the customers on-prem environment for cloud infrastructure.

    We currently execute not maintain 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 legal 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 maintain intentionally used the word repeatable and not recurring to portray 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 age of sale.

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

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

    Customers often prefer a subscription model, because it simplifies their procurement process, lowers their upfront commitment and aligns with their current 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 execute it easier for prospects to become Commvault customers, they are confident that the lifetime value of their customer relationships will increase. And from a Commvault perspective, they believe these models will drive a more predictable and repeatable revenue stream over time.

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

    In this example, on Slide 11, they maintain 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 support and maintenance. Each year that this customer renews their support maintenance, Commvault receives $45,000 of revenue. The total cost over a three-year age 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 price is inclusive of both software and maintenance and support. Over time typically, after the first read complete (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 furthermore 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 valuable to highlight two key operating metrics, which demonstrate their continued progress toward more repeatable software and products revenue streams, which we've been discussing for several quarters now. They believe these metrics point to 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 condense 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 Slide 13, as celebrated 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 support revenue on these arrangements.

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

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

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

    The second metric, I would relish to dispute is the subscription and utility annual condense value or ACV, which is shown on Slide 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 vigorous subscription contracts value, inclusive of revenue that was recognized as either software or support services, annualized for a 12-month equivalent value plus two, the annualized value of vigorous utility or pay as you current usage billings.

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

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

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

    I would now relish 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 maintain been making genial progress within their Commvault advance framework across complete 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 anticipate that the changes they maintain made to products, pricing, distribution and partnerships will drive future revenues and operating leverage, they furthermore took actions to align their cost structure with a reasonable revenue growth target.

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

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

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

    While their strategic fundamentals are strong and their competence to execute has improved, they still kisser faultfinding challenges. It is valuable to note that Commvault advance 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 advance are in place, there is a inescapable factor of transformational risk associated with the execution of such initiatives, particularly in the near term.

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

    While they furthermore necessity to better their nigh rates on these deals, great deal closure rates will likely remain lumpy, particularly in the near term. And lastly, while they are elated 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 maintain a dampening result on revenue, but they believe will ultimately result in a higher lifetime value. As previously stated, fiscal '19 will subsist impacted by the near-term disruption of the changes they implemented that as fraction of their Commvault advance 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 furthermore subsist a key component of their improved pecuniary performance. As you can discern on Slide 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 break 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 condense value.

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

    Our remaining international cash balance is spread across over 35 countries, while their goal is to continue to revert as much cash as workable back to the U.S., they may not subsist able to execute so in an economically efficient manner or may subsist limited by foreign laws and regulations.

    However, they execute believe that steps they are taking will result in the vast majority of future net cash current to subsist 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 balance was approximately $316 million, which is an increase of 7% over the prior year period. Nearly complete 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 maintain repurchased approximately $47 million or approximately 707,000 shares of their common stock at an middling cost of $66.33 per share.

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

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

    We announced a number of novel products and services including an exciting novel way 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 single console for managing Commvault's complete portfolio of products across an entire enterprise on premise, cloud and quit point infrastructures.

    The Command focus 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 competence to buy corrective actions.

    Broad-based security enables IT, Admin and quit users to maintain their own easily customizable dashboards. The Command focus can subsist 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 necessity as a service. They furthermore announced two other backup services for virtual machines on AWS and Azure, and a backup service for indigenous cloud application such as Microsoft Office 365 and sales force.

    These solutions will subsist available within cloud marketplaces for ease of acquisition and deployment. Customers can purchase the services as a Pay As You current license or as a fixed term subscription. They furthermore 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 great 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 great enterprises featuring stellar technology with their Commvault Hyperscale software. The small offering takes a full power of Commvault complete backup recovery into an appliance offering faultless for remote office and arm offices.

    All of their appliances can subsist used to seamlessly backup data on-premise or current 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 point to Al and I furthermore 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 subsist complete and backup and recovery solutions. Advances in machine learning and AI will create a sales driving relish taste that redefines how customers engage with their software. This is made workable through the capabilities of the novel Commvault Command Center.

    Secondly, the simple SmartCloud highlighting Commvault's competence to deliver a engage 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 legal extension of a modern on-premise data center.

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

    Innovation remains the hallmark behind Commvault's product vision and leadership. Commvault is applying leading edge AI and machine learning to deliver outcomes that customers value most. Commvault challenges the industry to anticipate 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 way and the search committee is making genial progress.

    In closing, under Commvault advance 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 advance initiatives and are excited about their accelerating subscription revenue.

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

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

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

    Now let me turn the convoke 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 maintain one for Bob and one for Brian. I'll start with Brian. Hey Brian, thanks for the detail on the current 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 examine Bob the next question.

    Brian Carolan -- Vice President and Chief pecuniary Officer

    Sure. genial 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 age of sale on the software portion.

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

    So you don't discern it point to up in deferred. It actually shows up in age 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 genial visibility into the traction that we're making on more repeatable revenue models.

    Joel Fishbein -- BTIG, LLC -- Analyst

    Would you maintain a backlog number then, relish in terms of total condense backlog or is that not a metric that might subsist meaningful?

    Brian Carolan -- Vice President and Chief pecuniary Officer

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

    Joel Fishbein -- BTIG, LLC -- Analyst

    Okay. Great. And then Bob just for you, what gives you assurance 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 denote 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 great deals into the funnel and those deals were tied a trend in the industry for great enterprises to consolidate complete 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 increase in great deal and current furthermore gives us optimism for this current quarter and it's continued.

    And secondly, as I discussed in my remarks, they now maintain a much stronger distribution position and although that's going to buy a exiguous time to impact their earnings, we're starting to discern that as well, so fortunately they got a massive significant upturn in their I'll convoke it core enterprise business and furthermore that is furthermore being driven by a much stronger partner and alliance relationships in the enterprise.

    And from the midmarket standpoint, they are seeing genial traction with their appliances in Commvault Complete and novel pricing. So the whole foundation at Commvault Complete was not try to execute changes here. That's why it goes back a yoke years to execute 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 umpire we've done this the right way although it had some attended risks as they made these massive changes last quarter.

    Joel Fishbein -- BTIG, LLC -- Analyst

    Great, thank you.

    Operator

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

    Aaron Rakers, -- Wells Fargo -- Analyst

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

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    So the funnel growth Aaron is material and significant. I denote it's -- we're talking about a very major increase in the growth of funnel, particularly in great enterprises and particularly in the Americas and the assumptions we're making on funnel nigh what I convoke reasonable and Brian can respond that question.

    So we're not putting vast nigh 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 furthermore search for really genial relative to the guidance they just provided.

    Brian Carolan -- Vice President and Chief pecuniary Officer

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    I think, Aaron, you saw a lot of this and this benevolent of validates what you saw it current 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 umpire last quarter Bob, in response to your question, you said that basically 98% I umpire was the number that the total sales obligate realignment efforts maintain been completed.

    As they search for 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 subsist anticipated in front of us if there are any?

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

    Aaron Rakers, -- Wells Fargo -- Analyst

    Okay, thank you.

    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 execute the observation that the search committee is making very genial progress on the CEO search.

    Jason Ader -- William Blair -- Analyst

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Well, the only validation is for us to hit the numbers. That's the only actual validation. complete I can advertise 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 convoke it $3 million, $4 million, $5 million, $6 million benevolent 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 strength of their product line for the bid market, where their appliances are complete and really getting their prices in line and we've eased that up with a lot more resources and focus.

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

    In addition, let me subsist transparent about this, if you search for 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 umpire there is a stronger platform in the industry than what they maintain here at Commvault.

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

    I umpire we're seeing the actual traction from the consolidation taking district in the enterprise across the Board for data management functions. I umpire cyber is a vast driver of that and we've had really genial success in taking major customers and they when they retrieve from major cyber attacks, they had most present at their current Conference as a genial case of that.

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

    So in spite of the changes the things they made, I umpire the company is fundamentally in a extremely strong strategic position to accelerate growth and they maintain 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. genial morning. So looking at Slide 21, your assumptions for repeatable revenue growth suggest growth of just 17% in fiscal '19. I umpire that decelerates to about 16% by fiscal '21, despite the blend continuing to increase.

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

    Brian Carolan -- Vice President and Chief pecuniary Officer

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

    Andrew Nowinski -- Piper Jaffray -- Analyst

    Okay. impartial 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 competence to grow revenue in Europe there?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    No. The EMEA team is consistently -- met their number or beat it and last quarter they basically took the bailiwick out for about six weeks as we're going through this whole 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 umpire what we've stated is accurate, that you can't draw any long-term conclusion from what happened last quarter, they really believe that the majority of that was disruption.

    Andrew Nowinski -- Piper Jaffray -- Analyst

    Okay, thanks, Bob.

    Operator

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

    John DiFucci -- Jefferies -- Analyst

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

    Can you disclose us about what the size or the percentage or the revenue of that revenue is relish 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 majestic scheme of the total. I would advertise that their retention rate is extremely tall on that.

    This is often a pay-as-you-go model based on usage. It's a quite sticky revenue stream that repeats typically every quarter and what we're trying to execute with the ACV metric is trying to annualize that as well, because it is on a Run rate that is fairly predictable for us. And it's not -- the majority of the revenue is not even nigh to that. They didn't advertise 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 maintain a pretty tall retention rates. So that's genial to hear. Okay. And Bob listen, so just to current 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 quit product, but go-to-market execution seems to maintain been spotty over history.

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

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Now, let's subsist clear. Sales is still really faultfinding and the surprise if you want to convoke it a surprise 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 yoke of years shifted to buying point products, the next shiny box or whatever and that began shifting probably about six months ago, maybe a exiguous longer so a consolidated holistic play in the enterprise and that's really accelerated and those -- that whole series of, suffer 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 obligate and I mentioned earlier, when they started Advance, but they wanted more leverage with distribution partners in the enterprise and now we've got the combination of those two.

    And then the mid-market, even though they shifted more resources to partners that's a process that is not going to occur in a day. It is happening as they speak, we're seeing in, but that engine will gain momentum quarter-on-quarter. So the respond is sales for their business is still extremely valuable and yes, there's no doubt when you execute major changes relish this and these are fundamental. They didn't try to party 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 way through that. But I umpire it will subsist manageable, because they got so many strengths now for their salespeople to hit their quotas and execute a lot of money.

    John DiFucci -- Jefferies -- Analyst

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yes, and search for some of that goes on when you execute 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. genial morning. I just want to succeed up on that last question, Bob, are you taking any specific actions with your top reps to incentivize them, specifically to stay on for the next yoke of quarters as you current 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 obligate around retention.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    The respond is just in common they are taking specific action in specific cases and trying to execute it easier for their sales teams to win their quotas. There is not a common corporatewide action. There are specific actions in the field.

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

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

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

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

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

    Brian Carolan -- Vice President and Chief pecuniary Officer

    No, they didn't Put a number on that. I'd advertise 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. complete 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 execute with yoke 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 maintain they done differently this year versus past years?

    I feel relish 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 buy HP and I'll let Al buy the NerApp. The unlikeness is that they maintain what I convoke fully integrated online plays with HP. So when they current to market, they current 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 last yoke of months. They maintain significant deals in the funnel with them that are actual that will most likely nigh this quarter.

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

    So I'm really confident about benevolent of where they are with them and we're furthermore 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 buy the NerApp.

    Al Bunte -- COO

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

    We furthermore umpire 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 convoke historic storage suppliers wanting to participate in this benevolent of trend.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yean and Al just made a really genial 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 competence to seamlessly manage data on premise and in the cloud across an enterprise is a major strategic odds versus anybody out there.

    Eric Martinuzzi -- Lake Street -- Analyst

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

    Brian Carolan -- Vice President and Chief pecuniary Officer

    Higher plane of integration.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    And to subsist transparent in HPE case and they execute maintain a competitor, in the enterprise they're focused with Commvault and the enterprise. The HPE play is mainly a great enterprise -- global great 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 complete disconnect. Everyone maintain a mighty 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

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    This article is a transcript of this conference convoke produced for The Motley Fool. While they strive for their foolish Best, there may subsist errors, omissions, or inaccuracies in this transcript. As with complete their articles, The Motley Fool does not assume any responsibility for your exhaust of this content, and they strongly encourage you to execute your own research, including listening to the convoke 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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    Trainers [3 Certification Exam(s) ]
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    USMLE [1 Certification Exam(s) ]
    VCE [6 Certification Exam(s) ]
    Veeam [2 Certification Exam(s) ]
    Veritas [33 Certification Exam(s) ]
    Vmware [58 Certification Exam(s) ]
    Wonderlic [2 Certification Exam(s) ]
    Worldatwork [2 Certification Exam(s) ]
    XML-Master [3 Certification Exam(s) ]
    Zend [6 Certification Exam(s) ]





    References :


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