Kash Rangan – Merrill Lynch

No, no I understand. But assuming that it were to go through, how would you or what''s your thought process in mind, which is sort of game plan if it goes through, how would you approach the industry?

James Whitehurst

Yes. It''s a hypothetical question. We will have to deal with it whenever comes to fruition. Let me answer your second question about the growth rate, which is, we use many inputs in billing our model, one of which is estimates by various sources about server growth. But as I said, our growth has many components, far beyond servers and other types of devices that are computers that Linux is on, middleware management, not to mention the free-to-pay. So, it''s just one factor of many. I would say since neither one of us said it in the prepared remarks that our pipeline looks good, quite strong. Our deferred revenue is strong, our backlog is strong. So, therefore our visibility looks pretty good at this time. I don''t know, we also do a bottom up build from our sales force with Korus [ph] and so that''s a nice check on any top down numbers. So, again, our reasons are pretty tight because we''re pretty confident in our view of demand.

Tom McCallum

Thanks. Next question please.

Operator

Your next question is from the line of Brent Thill with Citigroup.

Brent Thill – Citigroup

Thanks. Charlie if you can just go back to the deferred revenue and billings, you''ve seen a pretty sharp decline year-over-year in the growth rate. Can you just give us sense? Obviously, you grew 25% last year, now you are guiding 10% to 13%. But when you look at the billings and your pipeline, do you expect this to stabilize now and grow from this level? Or how do you reconcile what''s happening with the growth rate on both deferred…?

Charles Peters

I think that the easiest way to answer that question is to look at the guidance I provided on operating cash flow. The only way that one could provide the guidance on operating cash flow and particularly in the face of another 20 million decline in interest income, would be some assumptions about growth in deferred revenue and billings and probably backlog again for the year.

Brent Thill – Citigroup

Okay. And Jim, I guess a number of tech companies have indicated in the last couple of months that they are seeing some form of stabilization in the environment versus what we saw last fall when markets were in a free fall? Can you just comment at a very high level, what customers are saying to you at this point versus what you saw last fall?

James Whitehurst

We luckily never quite saw that same dip. We''ve seen a lot of interest from customers in open source as their budget have gotten tight. We see that interest continuing and a lot of discussions started then are just now coming to fruition. So, I haven''t seen real reduction in tight budgets. Maybe there is not the same quite level of desperation in people''s voices but budgets are tight this year. Budgets are set and we think that''s good for us at open source.

Brent Thill – Citigroup

Great, thanks a lot.

Tom McCallum

Operator, next question please.