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

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

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IBM IBM SmartCloud Application Performance

IBM Drives Watson AI in everything places | killexams.com real Questions and Pass4sure dumps

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

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

IBM Cloud inner most for DataIBM

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

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

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

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

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


IBM Db2 query Optimization the usage of AI | killexams.com real Questions and Pass4sure dumps

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

computer discovering on the IBM z Platform

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

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

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

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

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

    AI comes to Db2

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

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

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

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

    The issue for the DBA

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

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

    Db2 12 for z/OS and synthetic Intelligence

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

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

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

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

    how it Works

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

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

    abstract

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

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

    # # #

    Reference 1

    John Campbell, IBM Db2 Amazing EngineerFrom "IBM Db2 AI for z/OS: raise IBM Db2 application performance with laptop gaining knowledge of"https://www.worldofdb2.com/events/ibm-db2-ai-for-z-os-increase-ibm-db2-utility-performance-with-ma

    Reference 2

    Db2 AI for z/OShttps://www.ibm.com/support/knowledgecenter/en/SSGKMA_1.1.0/src/ai/ai_home.html


    massive Blue at terminal Brings IBM i To Its personal Public Cloud | killexams.com real Questions and Pass4sure dumps

    February 18, 2019 Timothy Prickett Morgan

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

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

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

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

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

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

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

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

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

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

    we can bewitch a contemplate on the pricing as soon as it turns into accessible and notice the course it everything stacks up, and bag the strategies of other IBM i cloud players about what massive Blue is doing.

    linked reports

    Public Cloud Dreaming For IBM i

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

    a more robust strategy to epidermis The IBM i Cloud Cat

    What Cloud providers ought to finish To appeal to IBM i

    Google near Launching IBM i Cloud provider, Will Says

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

    Ensono Emerges With IBM i Cloud providing

    Clouds grow, but Can IBM i comply with?

    IBM finally gets Power8 Machines On SoftLayer Cloud

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

    cellular Apps And The IBM i concern factory

    Infor Readies IBM i Cloud

    IBM i Finds a spot within the Cloud

    vigour systems Coming To The SoftLayer Cloud

    IBM Brags About Its Cloud Prowess due to SoftLayer

    IBM Buys SoftLayer To construct Out hosting, Cloud organizations

    Two quiz TPM Questions: real IBM i Clouds And Apple purchasing IBM i

    IBM i 7.1 Tech Refresh activities reside Partition Mobility

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

    I, Cloud-i-us

    wanted: Cloud-i i-nfrastructure

    The X component: Head in the Clouds


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

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    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 like 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 financial Officer.

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

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

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

    Commvault adopted the original revenue standard ASC606 on April 1, 2017. Their adoption was done on a retrospective basis, everything prior periods in their financial statements esteem been adjusted to comply with the original rules.

    As a result, the results and growth percentage they will contend today are on a comparable basis using the original rules. everything 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 moreover comprise a coast presentation as section of Commvault prepared remarks to facilitate updates on their Commvault advance initiatives. These initiatives comprise an update on their transition to subscription revenue models, as well as their recent operational review. The slides moreover cover their announcement of original 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 moreover note that in order to best notice the slides, they suggest enabling replete screen coast mode within the webcast. In addition, the slides can moreover 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 circle the convoke over to Bob.

    Thank you Mike, and helpful morning, everyone and thank you for joining their fiscal second quarter FY '19 earnings call. On today's convoke they will contend their fiscal 2019 second quarter results, their multi-year commerce model transformation to deliver shareholder value called Commvault Advance, including an update on the progress they esteem made to accelerate their transition to subscription revenue models, the results of their recent operational review, which includes the announcement of original multi-year revenue and operating margin targets, and an update on their share repurchase program. Let me briefly summarize their Q2 financial 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 section of their Commvault advance initiatives. Later in the presentation, they will talk about their original revenue metrics that will provide greater clarity to investors on their subscription model transition, which has been accelerating over the terminal several quarters.

    In Q2, their subscription revenue represented the highest harmony 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, terminal quarter they were implementing a major corporatewide transformation called Commvault Advance. delight bewitch note that Commvault issued a press release this morning, outlining the significant progress they esteem made since announcing Commvault advance in May.

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

    We believe that their second quarter software and products revenue reflected the temporary disruption from the significant Commvault advance related changes they made during the quarter, including reorganization of their sales and distribution organizations, which in section shifted a significant percentage of realm resources to back their channel and alliance partners and major simplification of both products pricing to contour 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 leavings of FY 2019.

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

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

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

    As data scale increases, they are moreover well on their path to their exit by scale in their platform. They now esteem 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 bewitch advantage 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 section of Advance, they are laser focused on improving their talent to accelerate revenues through a much stronger sales and distribution. These efforts esteem 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 commerce model optimization changes that will deliver shareholder value comprise 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 constituent of Commvault advance is to create and enhance expanded and simplified product portfolio, which includes product innovations that contour it easier for customers to install and spend their products and changes to packaging and pricing structures to contour a dramatically easier for their sales teams and partners to sell and customers to buy their products.

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

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

    All these products esteem 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 comprise their appliances in Commvault Complete, reallocation of sales resources from direct selling to supporting their partners and the expansion of their alliance relationships.

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

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

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

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

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

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

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

    Now let me talk about cost efficiencies. During fiscal '19, they made excellent progress in adjusting their cost structure so that they can deliver meaningful improvements to operating margins over the next brace of years. With the assistance of third party consultants, they identified areas of operational efficiencies both in the near and long term, which positively impacted the first half of FY '19 and they anticipate will drive higher operating margins for the poise 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 ameliorate their business, one thing they will not change is their commitment to innovation and delivering world-class solutions and back to their customers. As they identified economies in their cost structure, they esteem not decreased their investment in R&D or customer back since their objective is to maintain their technological leadership position in the industry.

    Our commitment to lead the industry in innovation is highlighted by the announcements they made recently at their third Annual Customer and ally 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 ameliorate IT resource utilization, bewitch immediate actions to mitigate damage from a cyber bombard and provide real time alerts on critical issues.

    We moreover continued to maintain their leadership position in the cloud. Commvault Solutions seamlessly drudgery 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 talent to enable customers to rapidly saunter workloads to, from and between clouds, while protecting the data is a significant competitive advantage and remains a key driver of the Commvault business.

    Now that the foundation of Commvault advance is in place, they believe they will notice increased topline momentum, as their channel strategy, go-to-market initiatives and alliance partnerships has started to demonstrate 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 recover from a cyber bombard with highly automated, machine learning and synthetic intelligence aided data protection, cataclysm recovery and intrusion detection and mediation.

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

    In summary, the implementation of the Commvault 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 status for the company to execute and deliver improved financial performance.

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

    Brian Carolan -- Vice President and Chief financial Officer

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

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

    Q2 total revenues were $169.1 million representing an multiply of 1% over the prior year period. On a sequential constant currency basis, total revenue would esteem 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 medium enterprise deal size was approximately $284,000 during the quarter.

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

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

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

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

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

    We anticipate that their diluted weighted medium share matter for replete 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 terminal 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 commerce and they intend on accelerating the pace of this transition over the next several years.

    When you combine their subscription-based license sales with their other repeatable services revenue streams, such as maintenance, managed services and SaaS, it represents what they 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. coast 9 in their presentation includes a chart that summarizes revenue based on how it is recognized and if it is potentially repeatable, nearly everything of Commvault software and product revenue is related to solutions that are Run in the customers on-prem environment for cloud infrastructure.

    We currently finish not esteem 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 dependable 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 esteem 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 term of sale.

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

    We measure total repeatable revenue as subscription software and product revenue, utility software revenue and the revenue related to their maintenance and back services. Note that unlike software, their maintenance and back 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 esteem heard from many of their enterprise customers that consumption-based pricing such as subscription arrangements is very elevated 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 saunter to consumption-based pricing models associated with cloud storage.

    Ultimately a subscription license provides the customer with much more flexibility to appropriate the changes in their commerce and technology. If subscription arrangements contour 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 contemplate at a simple representative example 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 coast 11, they esteem compared a like-for-like perpetual license and subscription license arrangement. As you can see, the subscription solution requires less upfront investment by the customer and results in lower initial revenue to Commvault.

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

    To purchase the equivalent amount of software under a three-year subscription model, the customer would pay $300,000 either upfront or over the three-year life of the agreement. This price is inclusive of both software and maintenance and support. Over time typically, after the first read everything (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 moreover realize other financial 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 demonstrate the potential value of the transition to CommVault shareholders.

    The first is repeatable revenue and the second is a original metric not previously discussed, but widely used in the industry and that is annual 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 coast 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 back revenue on these arrangements.

    The amounts included on the recurring back and services row is primarily maintenance and back revenue related to existing perpetual software arrangements. They would regard 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 coast 14. Subscription-based pricing represented a record 43% of software and products revenue in Q2, which compares to 17% in Q2 of terminal year.

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

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

    We believe this ACV metric normalizes the variations in contractual length among their subscription and utility transactions and will 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 hope to drive original customer acquisition, land and expand growth as well as up-sell opportunities. As of Q2, ACV has grown to $76 million after only a short term of selling subscription licenses. Importantly, ACV is accelerating and achieved approximately 90% year-over-year growth this quarter.

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

    I would now like to spend the next few minutes addressing both their near-term financial outlook and their longer-term operating targets. As outlined in today's press release, they esteem been making helpful progress within their Commvault advance framework across everything 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 financial performance of the company, while they hope that the changes they esteem made to products, pricing, distribution and partnerships will drive future revenues and operating leverage, they moreover 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 moreover conservatively planning for modest revenue growth in Q3 and Q4. They hope third quarter total revenue to subsist approximately $181 million and fourth quarter revenue of approximately $189 million, resulting in total FY '19 revenues of approximately $715 million.

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

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

    While their strategic fundamentals are strong and their talent to execute has improved, they noiseless kisser critical 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 unavoidable constituent 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 esteem discussed for many quarters, they are currently reliant upon a constant inflow of great six and seven-figure deals, which arrive with additional risks due to their complexity and timing.

    While they moreover necessity to ameliorate their nigh rates on these deals, great deal closure rates will likely remain lumpy, particularly in the near term. And lastly, while they are pleased 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 esteem a dampening consequence 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 section 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 notice 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 moreover subsist a key component of their improved financial performance. As you can notice on coast 21, their target is to achieve 80% repeatable revenue in fiscal '21.

    Given their transition to subscription software licensing began in fiscal '18, fiscal '21 represents the first opening for Commvault to significantly benefit 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 tarry of fiscal '21. The $240 million goal is approximately eight times the ACV they stated with when they began their saunter 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 notice 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 poise sheet and cash flows. As of September 30, their cash and short-term investments poise was approximately $484 million. During the quarter, they repatriated $67 million of international cash back to the US and reduced the amount of cash held in exotic locations from $197 million as of June 30 to $130 million as of September 30.

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

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

    Free cash flow, which they define as cash flux 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 poise was approximately $316 million, which is an multiply of 7% over the prior year period. Nearly everything 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 esteem repurchased approximately $47 million or approximately 707,000 shares of their common stock at an medium 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 circle the convoke back over to Bob. Bob?

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

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

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

    The Command headquarters 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 talent to bewitch corrective actions.

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

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

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

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

    All of their appliances can subsist used to seamlessly backup data on-premise or saunter 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 demonstrate Al and I moreover delivered a keynote presentation that outlined original and exciting products and fresh ideas that meet today's unique data management challenges and opportunities for three main messages.

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

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

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

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

    Before they wrap up, let me briefly update you on the search process for a original CEO. As stated previously, the CEO Search Committee of their Board remains -- retained a leading search from May and has been identifying and actively interviewing candidates. The search process is well under course and the search committee is making helpful 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 financial 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 esteem made comprehensive operational changes over the terminal several months and these changes are now behind us. They are now focused on ongoing forward execution. The actions they took to align their cost structure at the nascence 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 notice increased momentum as their channel strategy, go-to-market initiatives and alliance partnerships start to demonstrate 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 esteem a solid already -- where they already esteem solid proof points of success.

    Our objective is to contour confident they achieve their near-term financial 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 circle the convoke back to Mike. Mike?

    Michael Picariello -- MD of Americas Research

    Operator, can you delight 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 esteem one for Bob and one for Brian. I'll start with Brian. Hey Brian, thanks for the detail on the saunter to the subscription model. What I'm just trying to understand is with a lot of these companies, you start this -- you notice deferred revenue grow right as you note 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 quiz Bob the next question.

    Brian Carolan -- Vice President and Chief financial Officer

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

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

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

    Joel Fishbein -- BTIG, LLC -- Analyst

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

    Brian Carolan -- Vice President and Chief financial Officer

    That's really what, it's almost really, if you contemplate 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 confidence that you can grow 9% next year? Obviously you're making a lot of changes right now and I'm just -- what's giving you the confidence? Is it something that you're seeing out there specifically that you can point to?

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yes Joel, clearly we're seeing a substantial, I carry weight substantial uptick in funnel flux 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 everything their data management functions to deal with cost, cyber compliance and the cloud.

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

    And secondly, as I discussed in my remarks, they now esteem a much stronger distribution position and although that's going to bewitch a puny time to repercussion their earnings, we're starting to notice that as well, so fortunately they got a massive significant upturn in their I'll convoke it core enterprise commerce and moreover that is moreover being driven by a much stronger ally and alliance relationships in the enterprise.

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

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

    Joel Fishbein -- BTIG, LLC -- Analyst

    Great, thank you.

    Operator

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

    Aaron Rakers, -- Wells Fargo -- Analyst

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

    I contemplate with that in mind, it would subsist helpful to understand exactly what degree of funnel pipeline growth that you've been seeing and what assumptions are you making in terms of converting those funnel opportunities into recognized revenue? I'm just trying to understand the basis for that multiply conservatism wise or what you notice 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 carry weight it's -- we're talking about a very major multiply 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 confess that question.

    So we're not putting titanic 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 moreover contemplate really helpful relative to the guidance they just provided.

    Brian Carolan -- Vice President and Chief financial Officer

    Yeah, I contemplate just to result on with Bob's point, we're using fairly typical and medium nigh rates applying that to the current quarter funnel. Again, they notice a healthy uptick in their enterprise deal funnel heading into this quarter, which we're pleased with. Although I did explicate 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 benign of validates what you saw it fade since you were there and what you heard on the floor.

    Aaron Rakers, -- Wells Fargo -- Analyst

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

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

    Aaron Rakers, -- Wells Fargo -- Analyst

    Okay, thank you.

    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 contour the remark that the search committee is making very helpful progress on the CEO search.

    Jason Ader -- William Blair -- Analyst

    Okay. objective enough. And then over the terminal few years, we've seen a train 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 real validation. everything I can explicate 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 benign of deals and they're accelerating.

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

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

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

    And we've been able to bewitch 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 contemplate technically we're in a really helpful position.

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

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

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

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

    Brian Carolan -- Vice President and Chief financial Officer

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

    Andrew Nowinski -- Piper Jaffray -- Analyst

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

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

    Andrew Nowinski -- Piper Jaffray -- Analyst

    Okay, thanks, Bob.

    Operator

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

    John DiFucci -- Jefferies -- Analyst

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

    Can you narrate us about what the size or the percentage or the revenue of that revenue is like 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 financial Officer

    Sure. So the utility portion of the subscription revenue or repeatable revenue is actually -- it's relatively wee in the grand scheme of the total. I would explicate that their retention rate is extremely elevated on that.

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

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

    I know you're trying to shift more to partners, but that moreover increases some risk to any benign of shift those right. So I guess to some of those questions around like how finish 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 noiseless really critical and the astound if you want to convoke it a astound is we've always been strong in the enterprise and it drove a lot of their growth in their early years.

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

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

    And then the mid-market, even though they shifted more resources to partners that's a process that is not going to 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 confess is sales for their commerce is noiseless extremely valuable and yes, there's no doubt when you contour major changes like this and these are fundamental. They didn't try to troupe aid it and they did it quickly.

    You're going to notice 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 notice some attrition, disruption as they manage their course through that. But I contemplate it will subsist manageable, because they got so many strengths now for their salespeople to hit their quotas and contour a lot of money.

    John DiFucci -- Jefferies -- Analyst

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

    Yes, and contemplate some of that goes on when you contour 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. helpful morning. I just want to result up on that terminal question, Bob, are you taking any specific actions with your top reps to incentivize them, specifically to tarry on for the next brace of quarters as you fade through this transition, is there any specific actions you're taking? I know there is a lot of organizational changes here. I was wondering if there was a program around the sales coerce around retention.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    The confess is just in generic they are taking specific action in specific cases and trying to contour it easier for their sales teams to rate their quotas. There is not a generic corporatewide action. There are specific actions in the field.

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

    Okay. And Bob just competitively in the US, especially I know there's been a lot of discussion terminal brace of earnings calls around a brace of emerging platforms that are competing in the channel, just any benign 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 everything the competitors, legacy and the original competitors in the midmarket and certain, I'll convoke lower scale deployment enterprise. They clearly notice the original converged guys in the market and they esteem a lot of momentum, but now you've got a Commvault with a replete product line and much stronger distribution, to deal with that I can say.

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

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

    Alex Kurtz -- KeyBanc Capital Markets -- Analyst

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

    Brian Carolan -- Vice President and Chief financial Officer

    No, they didn't set a number on that. I'd explicate 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. everything right, thanks guys.

    Operator

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

    Eric Martinuzzi -- Lake Street -- Analyst

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

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

    That agreement was completely original agreement that was executed this summer and basically went into market over the terminal brace of months. They esteem significant deals in the funnel with them that are real that will most likely nigh this quarter.

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

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

    Al Bunte -- COO

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

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

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

    Robert Hammer -- Chairman, President and Chief Executive Officer

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

    Eric Martinuzzi -- Lake Street -- Analyst

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

    Brian Carolan -- Vice President and Chief financial Officer

    Higher plane of integration.

    Robert Hammer -- Chairman, President and Chief Executive Officer

    And to subsist transparent in HPE case and they finish esteem 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 everything disconnect. Everyone esteem 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 financial 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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    Leveraging Cloud Services | killexams.com real questions and Pass4sure dumps

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    Clouds provide a number of services to back running applications. IBM SmartCloud Enterprise provides services for compute resources, image development, network resources, virtual block-storage devices, software bundle management, and SSH key management. Fully leveraging these services requires a original mindset, because they typically supplant services that you might traditionally esteem asked someone else to provide (and then taken for granted). Suppose you're planning to host a original deployment. In a traditional IT environment, you might interact with an administrator in a data center, who would quiz you a number of questions. Then, after some investigation and negotiation, you would add your server to a rack in the data center, assign an IP address to it, and set a firewall rule. Finally, the system administrator would leave you to manage data storage, backup, patching, and other tasks independently. On the cloud, these services become section of the cloud's self-service user interface or API.

    Image management is one of the first challenges that you'll kisser with IaaS cloud computing. When you start developing on the cloud, you'll necessity to learn the basics of image development, making some investment in this belt to learn the value of the assets that image-development specialists create. groundwork operating-system images are created with helpful security defaults and minimal but adequate applications for basic use. You must bewitch the time to learn how the groundwork image has been set up, and then try to maintain within those conventions for customizing the image. This understanding will assist you with image maintenance, especially keeping the image current with the latest security patches.

    A virtual machine image is a snapshot of a virtual machine instance, with some runtime data removed (such as IP address, hostname, logs, and swap). The simplest course to create a virtual machine image is to start up an instance, install the software, and rescue it. This image will subsist adequate for your own spend and to share with a wee number of colleagues. However, if you end to share the image with a larger set of people, it will subsist worth your time to automate some software installation and configuration tasks, so that they can subsist done when users first start their virtual machines. This technique will contour maintenance easier, and it will simplify porting to different data centers and multiple operating systems. The groundwork operating-system images will subsist available at everything the various data centers, but considerable time might subsist needed to copy your custom images to everything the data centers, making them available to users around the world. Software bundles and automation scripts bewitch time to develop, but can subsist managed in a central system to minimize maintenance.

    Network services and storage on the cloud are very different. For security, you should host your application on a VLAN and regulate access to it via a firewall or VPN. (More on security in the next section.) There are two basic kinds of block storage:

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