思科 (CSCO) 2019 Q1 法說會逐字稿

Welcome to Cisco's First Quarter Fiscal Year 2019 Financial Results Conference Call.

歡迎參加思科 2019 財年第一季度財務業績電話會議。

At the request of Cisco Systems, today's conference is being recorded.

應 Cisco Systems 的要求，今天的會議正在錄製中。

If you have any objections, you may disconnect.

如有異議，可斷開連接。

Now I would like to introduce Marilyn Mora, Head of Investor Relations.

現在我想介紹一下投資者關係主管 Marilyn Mora。

Ma'am, you may begin.

女士，您可以開始了。

Thanks, Michelle.

謝謝，米歇爾。

Welcome, everyone, to Cisco's First Quarter Fiscal 2019 Quarterly Earnings Conference Call.

歡迎大家參加思科 2019 財年第一季度季度收益電話會議。

This is Marilyn Mora, Head of Investor Relations.

我是投資者關係主管 Marilyn Mora。

And I'm joined by Chuck Robbins, our Chairman and CEO; and Kelly Kramer, our CFO.

我們的董事長兼首席執行官查克·羅賓斯 (Chuck Robbins) 也加入了我的行列；和我們的首席財務官 Kelly Kramer。

By now you should have seen our earnings press release.

到現在為止，您應該已經看到了我們的收益新聞稿。

A corresponding webcast with slides, including supplemental information, will be made available on our website in the Investor Relations section following the call.

電話會議後，將在我們網站的“投資者關係”部分提供相應的帶幻燈片的網絡廣播，包括補充信息。

Income statements, full GAAP to non-GAAP reconciliation information, balance sheets, cash flow statements and other financial information can also be found in the Financial Information section of our Investor Relations website.

損益表、完整的 GAAP 與非 GAAP 調節信息、資產負債表、現金流量表和其他財務信息也可以在我們的投資者關係網站的“財務信息”部分找到。

As is customary in Q1, we have made certain reclassifications to our prior period amounts to conform to the current period's presentation.

按照第一季度的慣例，我們對前期金額進行了某些重新分類，以符合本期的列報。

The reclassified amounts have been posted on our website.

重新分類的金額已發佈在我們的網站上。

Click on the Financial Reporting section of the website to access these documents.

單擊網站的“財務報告”部分可訪問這些文件。

Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results and will discuss product results in terms of revenue and geographic and customer results in terms of product orders, unless stated otherwise.

在整個電話會議中，除非另有說明，否則我們將參考 GAAP 和非 GAAP 財務結果，並將討論收入方面的產品結果以及產品訂單方面的地理和客戶結果。

All comparisons made throughout this call will be on a year-over-year basis, unless stated otherwise.

除非另有說明，否則在本次電話會議中進行的所有比較都將按年進行。

The matters we will be discussing today include forward-looking statements, including the guidance we will be providing for the second quarter of fiscal 2019.

我們今天將討論的事項包括前瞻性陳述，包括我們將為 2019 財年第二季度提供的指導。

They are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent report on Form 10-K, which identifies important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements.

它們受制於我們在提交給美國證券交易委員會的文件中詳細討論的風險和不確定性，特別是關於 10-K 表格的最新報告，該報告確定了可能導致實際結果與報告中包含的結果大不相同的重要風險因素。前瞻性陳述。

With respect to guidance, please also see the slides and press release that accompany this call for further details.

關於指南，另請參閱本次電話會議隨附的幻燈片和新聞稿以了解更多詳細信息。

As a reminder, Cisco will not comment on its financial guidance during the quarter unless it is done through an explicit public disclosure.

提醒一下，除非通過明確的公開披露，否則思科不會就本季度的財務指引發表評論。

With that, I'll now turn it over to Chuck.

有了這個，我現在把它交給查克。

Thank you, Marilyn, and good afternoon, everyone.

謝謝瑪麗蓮，大家下午好。

We delivered another great quarter.

我們交付了另一個出色的季度。

It is absolutely clear that the strategy and transformation that we laid out 3 years ago was working.

很明顯，我們 3 年前製定的戰略和轉型正在奏效。

We accelerated revenue growth, expanded margins and generated strong operating cash flow and double-digit earnings per share growth.

我們加快了收入增長，擴大了利潤率，並產生了強勁的經營現金流和兩位數的每股收益增長。

We saw broad-based growth across all of our geographies, product categories and customer segments.

我們在所有地區、產品類別和客戶群中都看到了廣泛的增長。

This was driven by strong execution, differentiated innovation and our transition to more software and subscription offerings.

這是由強大的執行力、差異化創新以及我們向更多軟件和訂閱產品的過渡所推動的。

We are well positioned to capture significant growth opportunities while creating long-term value for our shareholders.

我們有能力抓住重要的增長機會，同時為我們的股東創造長期價值。

In today's environment, there's an ever-increasing number of connected devices with users expecting an always-on experience with access to any application.

在當今的環境中，連接的設備數量不斷增加，用戶期望在訪問任何應用程序時獲得始終在線的體驗。

The enterprise has expanded to now include multiple clouds, and applications are evolving at an unprecedented rate.

企業已經擴展到現在包括多個雲，並且應用程序正在以前所未有的速度發展。

Customers facing a new level of complexity are increasingly seeing the value of our integrated platforms over stand-alone products.

面臨新的複雜程度的客戶越來越多地看到我們的集成平台相對於獨立產品的價值。

We are fundamentally changing the network and security industry.

我們正在從根本上改變網絡和安全行業。

We're building an architecture that is designed to securely connect any user on any device on any network to any application running anywhere.

我們正在構建一種架構，旨在將任何網絡上任何設備上的任何用戶安全地連接到任何地方運行的任何應用程序。

This creates an enormous opportunity for us as we deliver a multi-domain, intent-based networking architecture that drives automation, simplicity and agility for our customers.

這為我們創造了一個巨大的機會，因為我們提供了一個多域、基於意圖的網絡架構，可以為我們的客戶推動自動化、簡單性和敏捷性。

Now let's take a more detailed look at our results as we continue to deliver new innovation across our entire portfolio.

現在，隨著我們繼續在整個產品組合中提供新的創新，讓我們更詳細地了解我們的結果。

Starting with Infrastructure Platforms.

從基礎設施平台開始。

Over a year ago, we set out on a strategy that would disrupt how growing data from a proliferation of new connected devices and complex traffic flows would be managed and secured from the private enterprise into multiple cloud environments.

一年多以前，我們制定了一項戰略，該戰略將破壞如何管理和保護從私有企業到多個雲環境的新連接設備激增和復雜流量流中不斷增長的數據。

We brought to market an intent-based architecture capable of capturing business intent and applying it across wired, wireless and enterprise routing, including SD-WAN.

我們向市場推出了一種基於意圖的架構，該架構能夠捕獲業務意圖並將其應用於有線、無線和企業路由，包括 SD-WAN。

This allows our customers to automate their operations, applications and security policies for efficiency and business agility.

這使我們的客戶能夠自動化他們的操作、應用程序和安全策略，以提高效率和業務敏捷性。

This value proposition resonates strongly with our customers and is driving continued strong customer ramp of our Catalyst 9000 family of switches.

這一價值主張引起了我們客戶的強烈共鳴，並推動我們的 Catalyst 9000 系列交換機的客戶持續強勁增長。

Yesterday, at our Partner Summit, we announced several exciting, new additions to this architecture.

昨天，在我們的合作夥伴峰會上，我們宣布了該架構的幾個令人興奮的新增功能。

We launched the next additions to the Cat 9K family, the 9200 and the 9800.

我們推出了 Cat 9K 系列的新成員 9200 和 9800。

The Catalyst 9200 series of switches extend intent-based networking to simple branch deployments and mid-market customers.

Catalyst 9200 系列交換機將基於意圖的網絡擴展到簡單的分支機構部署和中端市場客戶。

The Catalyst 9800 is our newest wireless controller.

Catalyst 9800 是我們最新的無線控制器。

We continue to help our customers run consistent security, automation and analytics services across wireless and wired environments.

我們繼續幫助我們的客戶在無線和有線環境中運行一致的安全、自動化和分析服務。

The 9800 gives our customers ultimate flexibility, running anywhere from on-premise and any cloud or embedded virtually on Catalyst 9000 switches.

9800 為我們的客戶提供了最大的靈活性，可以在本地和任何云的任何地方運行，或者以虛擬方式嵌入到 Catalyst 9000 交換機上。

We also announced a major new architectural change for the modern branch network.

我們還宣布了現代分支網絡的重大新架構變更。

Cisco is unifying our security and SD-WAN technologies to help organizations embrace the cloud faster with choice and confidence.

思科正在統一我們的安全和 SD-WAN 技術，以幫助組織以選擇和信心更快地擁抱雲。

We provide the simplest way to integrate SD-WAN with our cloud security.

我們提供了將 SD-WAN 與我們的雲安全集成的最簡單方法。

This is a great example of how the expansion into the cloud is driving our entire portfolio.

這是一個很好的例子，說明向雲的擴展如何推動我們的整個產品組合。

In the Data Center, as more customers move to multi-cloud environments, the need for secure virtualized infrastructure grows.

在數據中心，隨著越來越多的客戶轉向多雲環境，對安全虛擬化基礎設施的需求也在增長。

Our strategy is to enable our customers to address increasing connectivity and data growth while securely enabling workloads across any combination of private, public or multi-cloud environments.

我們的戰略是讓我們的客戶能夠應對日益增加的連接性和數據增長，同時在私有、公共或多雲環境的任何組合中安全地支持工作負載。

We continue to invest in innovation to help our customers transform their data centers for improved efficiency, scale and resiliency.

我們繼續投資於創新，以幫助我們的客戶改造他們的數據中心，以提高效率、規模和彈性。

This has resulted in tremendous traction with our Nexus 9K, ACI and UCS solutions as we architect security from the application to the network and support cloud workloads wherever they may reside.

這導致了我們的 Nexus 9K、ACI 和 UCS 解決方案的巨大吸引力，因為我們構建了從應用程序到網絡的安全性，並支持位於任何位置的雲工作負載。

Building on the success of our industry-leading Nexus switch portfolio, we recently unveiled new Nexus 400-gig switches.

基於我們行業領先的 Nexus 交換機產品組合的成功，我們最近推出了新的 Nexus 400-gig 交換機。

We are committed to leading the market transition from 100 gig to 400 gig, providing customers with increased bandwidth and scale in their data center environments, powering any workload in the cloud.

我們致力於引領市場從 100 gig 到 400 gig 的轉變，為客戶提供更高的帶寬和數據中心環境的規模，為雲中的任何工作負載提供支持。

The addition of 400 gig to our Nexus portfolio extends the power of ACI, providing intent-based networking to enterprises, web scale and service providers to enable them to build compact, fully-automated, high-bandwidth fabrics.

在我們的 Nexus 產品組合中增加 400 gig 擴展了 ACI 的功能，為企業、網絡規模和服務提供商提供基於意圖的網絡，使他們能夠構建緊湊、全自動、高帶寬的結構。

Cisco is the only company that not only delivers a best-of-breed 400-gig portfolio but also brings customers the architectural solutions for today's multi-cloud world.

思科是唯一一家不僅提供同類最佳的 400-gig 產品組合，還為客戶提供適用於當今多雲世界的架構解決方案的公司。

Last week, we expanded our hybrid cloud portfolio by introducing the industry's first hybrid solution for Kubernetes on Amazon Web Services.

上週，我們通過在 Amazon Web Services 上推出業界首個 Kubernetes 混合解決方案，擴展了我們的混合雲產品組合。

We are delivering a hybrid cloud solution that is designed to enable our customers to easily connect, secure and monitor Kubernetes-based applications across on-premise and the AWS cloud.

我們正在提供一種混合雲解決方案，旨在使我們的客戶能夠跨本地和 AWS 雲輕鬆連接、保護和監控基於 Kubernetes 的應用程序。

Turning to our Security business.

轉向我們的安全業務。

We again delivered another robust performance with double-digit growth.

我們再次實現了兩位數增長的強勁表現。

Our goal is to be our customers' #1 security partner.

我們的目標是成為客戶的第一大安全合作夥伴。

We are building a comprehensive and integrated security portfolio focused on effectively detecting, rapidly containing and quickly responding to threats.

我們正在構建一個全面、集成的安全產品組合，專注於有效檢測、快速遏制和快速響應威脅。

Spanning from the Edge to the Data Center and to the cloud, our customers' users devices, applications and data are protected wherever they are.

從邊緣到數據中心再到雲端，我們客戶的用戶設備、應用程序和數據無論身在何處都受到保護。

We continue to add more SaaS-based offerings to our broad security portfolio.

我們將繼續為我們廣泛的安全產品組合添加更多基於 SaaS 的產品。

A great example of this is our recent acquisition of Duo Security, which provides cloud-based identity solutions for Unified Access security and multifactor authentication.

一個很好的例子就是我們最近收購的 Duo Security，它為統一訪問安全和多因素身份驗證提供基於雲的身份解決方案。

Duo solutions play an important role in extending our intent-based architecture into multi-cloud environments, simplifying policy for cloud security and expanding endpoint visibility coverage.

Duo 解決方案在將我們基於意圖的架構擴展到多雲環境、簡​​化雲安全策略和擴大端點可見性覆蓋範圍方面發揮著重要作用。

The integration of Cisco's network, device and cloud security platforms with Duo's zero-trust authentication and access products is designed to allow us to easily and securely connect users to any application on any network device.

思科的網絡、設備和雲安全平台與 Duo 的零信任身份驗證和訪問產品的集成旨在使我們能夠輕鬆安全地將用戶連接到任何網絡設備上的任何應用程序。

Moving to applications.

轉向應用程序。

Data intelligence continues to be critical for organizations to improve business outcomes and agility.

數據智能對於組織提高業務成果和敏捷性仍然至關重要。

Our AppDynamics solution uniquely addresses this need, resulting in another quarter of strong double-digit growth.

我們的 AppDynamics 解決方案以獨特的方式滿足了這一需求，從而實現了又一個四分之一的強勁兩位數增長。

Our innovative capabilities and application monitoring and analytics provides unparalleled real-time business insights to our growing customer base, making us the clear market leader.

我們的創新能力以及應用程序監控和分析為我們不斷增長的客戶群提供了無與倫比的實時業務洞察力，使我們成為明確的市場領導者。

We achieved a solid quarter in our collaboration business and continue to set the standard for how people connect, collaborate and create every single day.

我們的協作業務取得了穩定的季度業績，並繼續為人們每天聯繫、協作和創造的方式設定標準。

We are defining the future of productivity and collaboration by providing customers of all sizes with a comprehensive portfolio to help them share data through any device anywhere.

我們通過為各種規模的客戶提供全面的產品組合來定義生產力和協作的未來，以幫助他們通過任何設備隨時隨地共享數據。

Customers recognize the value we bring with more than 95% of the Fortune 500 using our collaboration solutions.

超過 95% 的財富 500 強企業使用我們的協作解決方案，客戶認可我們帶來的價值。

We're delivering unique capabilities, enabling rich collaborative experiences, increased productivity and helping our customers transform their workspaces.

我們正在提供獨特的功能，實現豐富的協作體驗，提高生產力並幫助我們的客戶轉變他們的工作空間。

This is accomplished through our new modern WebEx experience, AI-enabled devices and enhanced interoperability across our on-premise and cloud solutions.

這是通過我們全新的現代 WebEx 體驗、支持 AI 的設備以及我們內部部署和雲解決方案之間增強的互操作性來實現的。

Yesterday, we expanded our collaboration offerings with a full suite of cloud calling and team collaboration tools to extend our customers' on-premise investments with new hybrid solutions from the cloud to the end user.

昨天，我們通過一整套雲呼叫和團隊協作工具擴展了我們的協作產品，以通過從雲端到最終用戶的新混合解決方案擴展我們客戶的本地投資。

These innovations include the availability of BroadSoft cloud calling with WebEx Teams through service providers, 85-inch WebEx board and our new portfolio of huddle room solutions with Room Kit Mini and WebEx Share.

這些創新包括通過服務提供商使用 WebEx Teams 進行 BroadSoft 雲呼叫的可用性、85 英寸 WebEx board 以及我們帶有 Room Kit Mini 和 WebEx Share 的全新小型會議室解決方案組合。

In summary, we had a great quarter, and our opportunity has never been greater.

總而言之，我們有一個很棒的季度，我們的機會從未像現在這樣大。

Our growth continued to accelerate as we executed well against our strategy, continued to drive innovation across our portfolio and delivered more software and cloud-based offerings.

我們的增長繼續加速，因為我們很好地執行了我們的戰略，繼續推動我們產品組合的創新，並提供了更多的軟件和基於雲的產品。

It is clear our customers are looking to Cisco as a trusted partner to help them operate in a multi-cloud world and to transform their businesses.

很明顯，我們的客戶將思科視為值得信賴的合作夥伴，以幫助他們在多雲世界中運營並實現業務轉型。

We are well positioned with our growing portfolio across multiple domains as we continue to innovate to bring our customers a more secure, automated and simple IT infrastructure.

隨著我們不斷創新，為我們的客戶提供更安全、自動化和簡單的 IT 基礎架構，我們在多個領域不斷增長的產品組合處於有利地位。

We believe the strength and differentiation of our portfolio, combined with the power of our business model, provides us with a strong foundation for fiscal year '19 to create long-term growth and shareholder value.

我們相信，我們投資組合的實力和差異化，再加上我們商業模式的力量，為我們在 19 財年創造長期增長和股東價值奠定了堅實的基礎。

Kelly, I'll now turn it over to you.

凱利，我現在把它交給你。

All right.

好的。

Thanks, Chuck.

謝謝，查克。

I'll start with a summary of our financial results for the quarter, followed by the guidance for Q2.

我將從本季度的財務業績摘要開始，然後是第二季度的指導。

We executed well across the business with strong orders, revenue growth, margins, EPS and operating cash flow.

我們在整個業務中表現良好，訂單強勁，收入增長，利潤率，每股收益和經營現金流。

We had continued momentum in product orders, which grew 8%.

我們的產品訂單保持增長勢頭，增長了 8%。

Total revenue was $13.1 billion, up 8%.

總收入為 131 億美元，增長 8%。

Our non-GAAP operating margin rate was 31.9%.

我們的非 GAAP 營業利潤率為 31.9%。

Non-GAAP net income was $3.5 billion, up 14%.

非 GAAP 淨收入為 35 億美元，增長 14%。

And non-GAAP EPS was $0.75, up 23%.

非 GAAP 每股收益為 0.75 美元，增長 23%。

Let me provide some more detail on our Q1 revenue.

讓我提供更多關於我們第一季度收入的細節。

Total product revenue was up 9% to $9.9 billion.

產品總收入增長 9% 至 99 億美元。

Infrastructure Platforms grew 9% with strong growth across all businesses.

基礎設施平台增長了 9%，所有業務都實現了強勁增長。

Switching had another great quarter with growth in Campus driven by the continued ramp of the Cat 9K and growth in Data Center driven by the Nexus 9K.

Switching 在 Cat 9K 的持續增長和 Nexus 9K 推動的數據中心增長的推動下，又迎來了另一個偉大的季度。

Routing returned to growth driven by Service Provider.

路由在服務提供商的推動下恢復增長。

Wireless had double-digit growth with strength in our Wave 2 offerings and Meraki.

Wireless 在我們的 Wave 2 產品和 Meraki 中取得了兩位數的增長。

We also saw good growth in Data Center driven by servers and HyperFlex.

我們還看到了由服務器和 HyperFlex 驅動的數據中心的良好增長。

Applications was up 18% with growth across all the businesses.

隨著所有業務的增長，應用程序增長了 18%。

We saw good growth in Unified Communications, TelePresence and AppDynamics.

我們看到了統一通信、網真和 AppDynamics 的良好增長。

Security was up 11% with strong performance in identity and access, advanced threat and unified threat.

安全性增長了 11%，在身份和訪問、高級威脅和統一威脅方面表現強勁。

Service revenue was up 3% driven by software and solution support.

在軟件和解決方案支持的推動下，服務收入增長了 3%。

We continue to transform our business, delivering more software offerings and driving more subscriptions Software subscriptions were 57% of total software revenue, up 5 points year-over-year.

我們繼續轉型我們的業務，提供更多軟件產品並推動更多訂閱軟件訂閱佔軟件總收入的 57%，同比增長 5 個百分點。

To remind you, we adopted ASC 606 in Q1.

提醒您，我們在第一季度採用了 ASC 606。

There have been no changes to our offerings to customers or our cash conversion cycles.

我們向客戶提供的產品或我們的現金轉換週期沒有變化。

This is purely an accounting change.

這純粹是一項會計變更。

It does not impact the metrics that -- I'm sorry, it does impact the metrics that show our continued business transformation.

它不會影響指標 - 對不起，它確實會影響顯示我們持續業務轉型的指標。

We think the most meaningful metric going forward is software subscriptions as a percentage of total software revenue.

我們認為未來最有意義的指標是軟件訂閱佔軟件總收入的百分比。

When we look at the impact of acquisitions in our Q1 results year-over-year, there was an 80 basis point positive impact on revenue.

當我們查看收購對我們第一季度業績的同比影響時，對收入產生了 80 個基點的積極影響。

We saw strong momentum in Q1 with total product orders growing 8%.

我們在第一季度看到了強勁的勢頭，總產品訂單增長了 8%。

Looking at our geographies.

看看我們的地理位置。

Americas grew 8%, EMEA was up 6%, and APJC was up 12%.

美洲增長 8%，EMEA 增長 6%，APJC 增長 12%。

Total emerging markets was up 16%, with the BRICS plus Mexico up 19%.

新興市場總量增長了 16%，其中金磚國家和墨西哥增長了 19%。

In our customer segments, Enterprise was up 15%, Commercial grew 8%, Public Sector was up 8% and Service Provider grew 2%.

在我們的客戶群中，企業增長了 15%，商業增長了 8%，公共部門增長了 8%，服務提供商增長了 2%。

From a non-GAAP profitability perspective, total Q1 gross margin was 63.8%, up 0.1 point.

從非美國通用會計準則盈利能力的角度來看，第一季度總毛利率為 63.8%，上升 0.1 個百分點。

Product gross margin was 63.2%, up 0.2 point.

產品毛利率為63.2%，上升0.2個百分點。

And service gross margin was 65.7%, up 0.1 point.

服務毛利率為65.7%，上升0.1個百分點。

Our operating margin was 31.9%, up 1.5 points.

我們的營業利潤率為 31.9%，上升 1.5 個百分點。

In terms of bottom line, from a GAAP perspective, Q1 net income was $3.5 billion, and EPS was $0.77.

底線方面，從 GAAP 角度來看，Q1 淨收入為 35 億美元，EPS 為 0.77 美元。

We ended Q1 with total cash, cash equivalents and investments of $42.6 billion.

第一季度末，我們的現金、現金等價物和投資總額為 426 億美元。

Q1 operating cash flow was $3.8 billion, up 22%, with free cash flow of $3.6 billion, also up 22%.

第一季度運營現金流為 38 億美元，增長 22%，自由現金流為 36 億美元，也增長 22%。

Normalized for the $400 million legal settlement we received from Arista, operating cash flow was up 9%.

將我們從 Arista 收到的 4 億美元法律和解歸一化後，運營現金流增長了 9%。

From a capital allocation perspective, we returned $6.5 billion to shareholders during the quarter.

從資本配置的角度來看，本季度我們向股東返還了 65 億美元。

That was comprised of $5 billion of share repurchases and $1.5 billion for our quarterly dividend.

其中包括 50 億美元的股票回購和 15 億美元的季度股息。

From a M&A perspective, we closed 2 acquisitions in Q1 with Duo Security and July Systems.

從併購的角度來看，我們在第一季度完成了 Duo Security 和 July Systems 的 2 筆收購。

These moves are consistent with our strategy of increasing investment in innovation and R&D for our growth areas.

這些舉措符合我們增加對增長領域創新和研發投資的戰略。

To summarize, we had a great Q1.

總而言之，我們有一個很棒的第一季度。

We executed well with strong top line growth and profitability.

我們執行良好，收入增長強勁，盈利能力強。

We're seeing the returns on the investments we making in innovation and driving the shift to more software and subscriptions, delivering long-term growth and shareholder value.

我們正在看到我們在創新和推動向更多軟件和訂閱的轉變方面所做投資的回報，從而實現長期增長和股東價值。

Let me reiterate our guidance for the second quarter of fiscal '19.

讓我重申我們對 19 財年第二季度的指導。

This guidance includes the type of forward-looking information that Marilyn referred to earlier.

本指南包括 Marilyn 之前提到的前瞻性信息類型。

Note that we have normalized our second quarter guidance to exclude the SPVSS business for Q2 fiscal year '18, which we divested on October 28, 2018.

請注意，我們已將我們的第二季度指導規範化，以排除我們於 2018 年 10 月 28 日剝離的 18 財年第二季度的 SPVSS 業務。

We have provided historical financial information for the SPVSS business in the slides that accompany this call.

我們在本次電話會議隨附的幻燈片中提供了 SPVSS 業務的歷史財務信息。

We expect revenue growth in the range of 5% to 7% year-over-year.

我們預計收入同比增長 5% 至 7%。

We anticipate the non-GAAP gross margin rate to be in the range of 63.5% to 64.5%.

我們預計非美國通用會計準則毛利率將在 63.5% 至 64.5% 的範圍內。

The non-GAAP operating margin rate is expected to be in the range of 30.5% to 31.5%, and the non-GAAP tax provision rate is expected to be 19%.

非 GAAP 營業利潤率預計在 30.5% 至 31.5% 之間，非 GAAP 稅收撥備率預計為 19%。

Non-GAAP earnings per share is expected to range from $0.71 to $0.73.

非 GAAP 每股收益預計在 0.71 美元至 0.73 美元之間。

I'll now turn it back to Marilyn so we can move into the Q&A.

我現在把它轉回 Marilyn，這樣我們就可以進入問答環節了。

Thanks, Kelly.

謝謝，凱利。

Michelle, let's go ahead and open the lines for questions.

米歇爾，讓我們開始提問吧。

(Operator Instructions) I'll now turn it over to you, Michelle.

（操作員說明）我現在把它交給你，米歇爾。

James Faucette from Morgan Stanley Investment Research.

摩根士丹利投資研究部的 James Faucette。

I guess, maybe I'll direct to say, Chuck and Kelly, and you guys answer where you think it is appropriate.

我想，也許我會直接說，Chuck 和 Kelly，你們在你們認為合適的地方回答。

But one of the key questions we've been getting from investors is, if you're seeing any change in customer behavior, either because of pending tariff implementations or macro conditions around the world, you've seen -- in this past quarter, you've seen a lot of volatility on exchange rates as well as the pending implementation of these tariffs.

但我們從投資者那裡得到的一個關鍵問題是，如果你看到客戶行為發生任何變化，無論是由於未決的關稅實施還是全球宏觀狀況，你已經看到 - 在過去的這個季度，你已經看到匯率的劇烈波動以及這些關稅的即將實施。

So wondering if you're seeing any change, whether customers are pulling forward deals or reducing deal size, et cetera.

所以想知道您是否看到任何變化，客戶是否正在推進交易或減少交易規模等等。

So let me -- thanks, James.

所以讓我——謝謝，詹姆斯。

Let me give you some comments, first of all, and then I'll pass it over to Kelly.

首先讓我給你一些意見，然後我會把它傳遞給凱利。

First of all, we -- the tariffs were immaterial to us in Q1.

首先，我們 - 第一季度的關稅對我們來說並不重要。

The 10% tariffs, I think, we implemented them with a month to go, so we did not see any impact.

10% 的關稅，我認為，我們實施了一個月，所以我們沒有看到任何影響。

But I can tell you that from a demand perspective, when we implemented the pricing changes, which we told you we would on the last call, we saw absolutely no demand change from the week before and the week after we did that.

但我可以告訴你，從需求的角度來看，當我們實施價格變化時，我們在上次電話會議上告訴過你，我們看到前一周和後一周的需求完全沒有變化。

We have talked to all of the sales leaders around the world, and I could tell you, there are probably only a handful of customers that have made any indication to us right now that they're doing any pull-forwards.

我們已經與世界各地的所有銷售主管進行了交談，我可以告訴你，目前可能只有少數客戶向我們表示他們正在做任何前瞻性工作。

Now that doesn't mean that there's not stuff out there that we don't see, but in general, we do not view this as a broad-based issue.

現在這並不意味著沒有我們看不到的東西，但總的來說，我們不認為這是一個基礎廣泛的問題。

And our momentum from the first week of the quarter until the last week of the quarter was incredibly consistent.

從本季度的第一周到本季度的最後一周，我們的勢頭非常穩定。

So Kelly, any comments?

凱利，有什麼意見嗎？

Yes.

是的。

I mean, I'll say just to add some -- add to that.

我的意思是，我會說只是添加一些 - 添加到那個。

If I look at the linearity by month through the quarter of Q1, it was the exact same as it was in Q1 '18.

如果我按月查看 Q1 季度的線性，它與 18 年第一季度完全相同。

So we didn't see -- for the 10% tariffs, we didn't see any pull-ins.

所以我們沒有看到 - 對於 10% 的關稅，我們沒有看到任何拉入。

And just to kind of remind everybody.

只是想提醒大家。

We are actively working with our supply chain to mitigate as much of this as possible, and we've made progress.

我們正在積極與我們的供應鏈合作，以盡可能減少這種情況，並且我們已經取得了進展。

For that, that we couldn't mitigate, we passed on, and we passed on the price impact, so just to the products impacted versus broad-based.

為此，我們無法減輕，我們傳遞了，我們傳遞了價格影響，所以只傳遞給受影響的產品而不是廣泛的產品。

We were very specific and surgical where we applied it.

我們在應用它的地方非常具體和外科手術。

But overall, we are very specific.

但總的來說，我們非常具體。

Going into Q2, like Chuck said, it's pretty straightforward, but I would hope that it is a potential that drives some demand.

進入第二季度，就像 Chuck 所說的那樣，它非常簡單，但我希望它有可能推動一些需求。

But the underlying strength of the IT environment is still there.

但 IT 環境的潛在力量仍然存在。

Yes.

是的。

Two other quick comments.

另外兩個快速評論。

I can just tell you, personally, I haven't had one conversation with any customer around the tariffs at this point.

我個人可以告訴你，目前我還沒有與任何客戶就關稅進行過一次談話。

Secondly, I think that once we got past the midterms, we've begun to hear some positive, at least, headlines relative to the discussions.

其次，我認為一旦我們過了中期，我們就開始聽到一些積極的消息，至少是與討論相關的頭條新聞。

And I remain fairly optimistic that this has become a top priority for the administration, and we're hopeful that they'll come to some agreement before we move to anything more significant.

我仍然相當樂觀地認為這已成為政府的首要任務，我們希望他們能在我們採取更重要的行動之前達成某種協議。

Vijay Bhagavath from Deutsche Bank.

德意志銀行的 Vijay Bhagavath。

I have a bigger-picture question for both of you, if I may, which is the subscriptions model.

如果可以的話，我有一個更宏觀的問題要問你們，那就是訂閱模式。

The promise was to get a higher share of the purchasing dollars, the customers' budgets.

承諾是獲得更高份額的購買資金，即客戶的預算。

Is that starting to happen?

那開始發生了嗎？

Are you starting to see it in your sales figures?

您開始在銷售數據中看到它了嗎？

And if you could give us any data anecdotes saying, yes, now that we have kind of expanded and extended software subscriptions across the portfolio, you're seeing X percentage more of the customer share of IT spending purchasing dollars would be very helpful.

如果你能給我們任何數據軼事說，是的，現在我們在整個產品組合中都有某種擴展和擴展的軟件訂閱，你會看到 IT 支出購買美元的客戶份額增加 X% 將非常有幫助。

Yes, thanks, Vijay.

是的，謝謝，維杰。

Let me comment because this was at the heart of our presentation this week at the Partner Summit.

讓我發表評論，因為這是我們本週在合作夥伴峰會上的演講的核心。

And there's a significant recognition that, I think, is occurring in the marketplace right now.

我認為，現在市場上正在出現一種重要的認識。

If you look at what our customers are dealing with, they are dealing with a world that truly does involve consuming services from multiple cloud providers.

如果你看看我們的客戶正在處理什麼，他們正在處理一個真正涉及使用來自多個雲提供商的服務的世界。

Most of our customers have well over 100 and beyond SaaS applications that they're dealing with.

我們的大多數客戶都在處理 100 多個甚至更多的 SaaS 應用程序。

They still have increased investments in the Data Center.

他們仍然增加了對數據中心的投資。

They're beginning to see IoT explosions at the Edge, data at the Edge, mobile workers everywhere, interconnectivity with suppliers and customers.

他們開始看到邊緣的 IoT 爆炸式增長、邊緣的數據、無處不在的移動工作人員以及與供應商和客戶的互連。

And what that has done is it's completely made obsolete the original assumptions on which they define their IT infrastructure.

這樣做的結果是，它完全使他們定義 IT 基礎架構所依據的原始假設過時了。

And so the IT infrastructure was built based on assumption of traffic flows that just fundamentally don't exist anymore.

因此，IT 基礎設施是基於基本不再存在的流量假設構建的。

And so what we're seeing is that they now need to drive security and policy and automation from the Campus to the Data Center to the branch into the cloud.

因此，我們所看到的是，他們現在需要推動從園區到數據中心再到分支機構的安全、策略和自動化，再到雲端。

And they're looking more and more at the simplicity of having a single architecture to provide that capability.

他們越來越關注使用單一架構來提供該功能的簡單性。

So one of the big things that we talked about this week was the need to drive multi-domain architectures for our customers, which actually give them the ability.

因此，我們本週討論的一件大事是需要為我們的客戶推動多域架構，這實際上賦予了他們能力。

And you're seeing us extend and connect like policy in the Campus with policy in the data centers.

你看到我們在數據中心擴展和連接校園政策和政策。

So you're seeing ACI being connected into DNA and our Software-Defined Access technology in the Campus so that we can extend policy.

所以你看到 ACI 被連接到 DNA 和我們在校園中的軟件定義訪問技術，以便我們可以擴展策略。

You saw this week with the branch where we integrated our SD-WAN with our security -- cloud security portfolio.

你在本週看到了我們將 SD-WAN 與我們的安全——雲安全產品組合集成在一起的分支機構。

So -- and I think we're seeing that come through in more and more of these broad-based software licenses that we continue to see our customers adopting.

所以 - 我認為我們正在看到越來越多的這些廣泛的軟件許可證出現，我們繼續看到我們的客戶採用這些許可證。

So I think that we are seeing that play out exactly as we thought, Vijay.

所以我認為我們看到的結果和我們想像的完全一樣，Vijay。

Kelly, any...

凱利，任何...

No.

不。

Rod Hall from Goldman Sachs.

來自高盛的 Rod Hall。

I guess, I wanted to focus in on product revenue growth.

我想，我想專注於產品收入增長。

It was really strong for the quarter, 9%.

這個季度真的很強勁，9%。

I know that's with SPVSS, which, if anything, dragged that down.

我知道這是與 SPVSS 相關的，如果有的話，它會拖累它。

And then -- so I mean, it feels like you've been pretty conservative in the guidance, and I know you'll probably say, "No, we aren't." But I'm just curious what could go better in this guidance, what you're contemplating in terms of elements of conservatism.

然後 - 所以我的意思是，感覺你在指南中一直很保守，我知道你可能會說，“不，我們不是。”但我只是很好奇，在本指南中，哪些方面可以做得更好，您在保守主義要素方面正在考慮什麼。

Can you give us any idea of how you're thinking about that forward quarter right now and how things might go better if, let's say, we do get a trade deal, et cetera?

你能告訴我們你現在是如何考慮這個前季度的嗎？如果我們確實達成貿易協議等等，事情會如何變得更好？

Rod, thanks for the question.

羅德，謝謝你的提問。

Let me just give you some -- a little color, and then Kelly can answer some specifics on the math.

讓我給你一些 - 一點顏色，然后凱利可以回答一些關於數學的細節。

I would say, the last 2 quarters were probably the most consistent, strong quarters that we've seen in years, honestly.

我想說，老實說，過去兩個季度可能是我們多年來看到的最穩定、最強勁的季度。

And I think it's a combination, as we've talked about, of the macro environment but also, frankly, the innovation.

正如我們所討論的，我認為這是宏觀環境的結合，坦率地說，也是創新的結合。

If you look at the portfolio that we have put out there and you look at the number of announcements and the technology and the innovation that we delivered this week, I think you're going to continue to see strong execution.

如果你看看我們在那裡發布的產品組合，看看我們本週發布的公告數量、技術和創新，我認為你會繼續看到強勁的執行力。

We're really proud of what our teams have done.

我們為我們的團隊所做的一切感到非常自豪。

So -- and I think that the recognition by the customers of this architectural shift that I was talking about earlier is really beginning to play out.

所以——我認為客戶對我之前談到的這種架構轉變的認可真的開始發揮作用了。

So we feel really good about how we're performing.

所以我們對自己的表現感覺非常好。

I'll let Kelly comment on both the product revenue growth and the outlook.

我會讓凱利對產品收入增長和前景發表評論。

Yes.

是的。

I'd say, actually, I think, Rod, I feel like this is a pretty, pretty good guide and actually better theoretically than maybe you guys were expecting.

我想說，實際上，我認為，Rod，我覺得這是一個非常非常好的指南，實際上在理論上比你們預期的要好。

I mean, don't forget, that 6% growth in the midpoint of the guide we gave you, again, excluding SPVSS out of both periods, obviously, is really solid because we have much tougher comparison from a year ago.

我的意思是，不要忘記，我們給你的指南中點 6% 的增長，再次，從兩個時期中排除 SPVSS，顯然，這是非常可靠的，因為我們與一年前相比有更嚴格的比較。

I mean, we see the strength, and I'm just trying to balance it with there is a lot of unknown depending on what tariffs do.

我的意思是，我們看到了力量，我只是想在它與有很多未知數之間取得平衡，這取決於關稅的作用。

But underlying strength in the macro gives us good confidence.

但宏觀的潛在力量給了我們很大的信心。

So I feel actually very, very good about the call and...

所以我對這個電話感覺非常非常好，而且......

Kelly, I just -- just one comment on that.

凱利，我只是 - 對此只有一個評論。

What I would say -- and I didn't mean that it was disappointing from a guidance point of view.

我要說的是——我並不是說從指導的角度來看它令人失望。

I just meant that you were so strong on growth in the reported quarter.

我只是說你在報告的季度增長如此強勁。

Why not be more, I guess, aggressive with the guidance?

我想，為什麼不更積極地接受指導呢？

That was really what I was asking.

那真的是我要問的。

There is one -- there is -- you bring up a good point, which I do want to get out there.

有一個 - 有 - 你提出了一個很好的觀點，我確實想說出來。

Our growth was very, very strong in Q3.

我們在第三季度的增長非常非常強勁。

And again, back to ASC 606, under new accounting rules, as you know, we have a very strong presence in the Enterprise.

再次回到 ASC 606，如您所知，根據新的會計規則，我們在企業中擁有非常強大的影響力。

Our Enterprise business is going very, very well.

我們的企業業務發展得非常非常好。

Whenever we sign these big, multi-year enterprise agreements, under the new accounting rules, that will accelerate revenue.

每當我們根據新的會計規則簽署這些大型的多年期企業協議時，都會加速收入增長。

So in this current Q1, software came in very, very strong.

所以在當前的第一季度，軟件非常非常強大。

We happen to have 2 very large multi-year enterprise agreements with some large enterprises where, in any one quarter, I might have one, but this was a big one.

我們碰巧與一些大型企業簽訂了 2 份非常大的多年期企業協議，在任何一個季度，我都可能有一份，但這是一份很大的協議。

So that's one additional piece to it.

所以這是它的另一部分。

But overall, I'd say all of the underlying fundamentals are very, very positive.

但總的來說，我想說所有潛在的基本面都非常非常積極。

And I think these enterprise agreements are actually reflective of what the question Vijay asked.

我認為這些企業協議實際上反映了 Vijay 提出的問題。

That's a good point.

那是個很好的觀點。

Paul Silverstein from Cowen and Company.

來自 Cowen and Company 的 Paul Silverstein。

Kelly, just 2 quick questions on pricing and the drag from the shift to recurring or does 606 address that?

凱利，只有兩個關於定價的快速問題，以及從轉變到經常性的拖累，或者 606 是否解決了這個問題？

And the bigger question for you and Chuck -- and Chuck, if you can't answer this, I'm hoping you'll answer a different question.

對你和查克來說更大的問題——查克，如果你不能回答這個問題，我希望你能回答一個不同的問題。

But I hear you keep citing the strength of the macro environment.

但我聽說你一直在引用宏觀環境的力量。

And the thought arises that it's far from even throughout the world.

並且出現了它遠非整個世界的想法。

U.S. has been strong, but there are plenty of other places far less so.

美國一直很強大，但還有很多其他地方遠不如此。

In fact, I don't think the word strong would apply.

事實上，我不認為強這個詞會適用。

And yet your revenue on a very broad base across geos is very strong and far outstripping what we see from a macro perspective.

然而，您在跨地域的廣泛基礎上的收入非常強勁，遠遠超過我們從宏觀角度看到的收入。

If you can't answer for the disconnect, my question to you would be, how -- what do you think is the time period?

如果您無法回答脫節問題，我的問題是，您認為時間段是怎樣的？

I know it's still early in the Catalyst switch architecture upgrade cycle.

我知道現在還處於 Catalyst 交換機架構升級週期的早期階段。

How far do you think that has to go?

您認為這需要走多遠？

Where do you think you are in that process?

你認為你在那個過程中處於什麼位置？

How much strength is there to come?

到底有多大的實力？

Okay.

好的。

Thanks, Paul.

謝謝，保羅。

Thanks for the 4 questions.

感謝您提出的 4 個問題。

Just kidding.

只是在開玩笑。

So Kelly, you'll talk about pricing and everything.

所以凱利，你會談論定價和一切。

Let me give you the broader answer, Paul.

讓我給你更廣泛的答案，保羅。

I think you're right.

我想你是正確的。

And I mean, when you look at our results in -- on an orders perspective and you see emerging countries up 16% in the face of a rising dollar, that's different than what we've seen historically when we were very -- what I would say is we were directly connected to the global GDP, and we move with it.

我的意思是，當你看我們的結果時——從訂單的角度來看，你會看到新興國家在美元升值的情況下增長了 16%，這與我們歷史上看到的不同，當時我們非常——我可以說我們與全球 GDP 直接相關，我們也隨之改變。

I think maybe this is the beginning of us answering the question that I've been asked the last 2 calls, which is how much of this is macro and how much of it is your own execution.

我想這也許是我們回答最近 2 次通話中有人問我的問題的開始，即其中有多少是宏觀的，有多少是您自己執行的。

When we began to perform differently than what's perceived to be in the macro, I think that'll give us insight into how much of it is our execution or innovation.

當我們開始表現出與宏觀上所認為的不同時，我認為這會讓我們深入了解其中有多少是我們的執行或創新。

The other thing I'd point out is that -- and by the way, in the emerging countries, just to be clear, it was very consistent across the board.

我要指出的另一件事是——順便說一下，在新興國家，需要明確的是，它在各個方面都非常一致。

So we had incredible strength in -- we do have incredible strength in India.

所以我們在 - 我們在印度確實擁有令人難以置信的力量。

It was our second quarter of 50%-plus growth in India.

這是我們在印度實現 50% 以上增長的第二季度。

So we have really done a great job there, and it's not just the large service providers.

所以我們在那裡確實做得很好，不僅僅是大型服務提供商。

We had a large Public Sector deal this quarter.

本季度我們有一筆大型公共部門交易。

So we're -- that is a key market for us that we intend to win in, and the teams are doing a good job there.

所以我們——這對我們來說是一個我們打算贏得的關鍵市場，而且團隊在那裡做得很好。

But I think the other thing to consider is that when you look at our customers even in a tough economic environment, what is one of the things that you want to do when you're in a tough economic environment is you want to continue to drive cost and productivity in your business.

但我認為另一件需要考慮的事情是，當你在艱難的經濟環境中觀察我們的客戶時，當你處於艱難的經濟環境中時，你想做的事情之一是你想繼續推動您企業的成本和生產力。

And at the heart of the automation strategy and at the heart of some of the SD-WAN stuff and at the heart of rearchitecting the infrastructure, the ending result is to drive cost out and drive productivity up.

在自動化戰略的核心、一些 SD-WAN 的核心以及重新構建基礎設施的核心，最終的結果是降低成本並提高生產力。

So it's unclear to me at this point what any sort of significant macro shift is going to do to the spending in this environment because it is connected to what you're trying to achieve when you do have a tough macro environment.

因此，目前我還不清楚任何重大的宏觀轉變會對這種環境下的支出產生什麼影響，因為它與你在艱難的宏觀環境中想要實現的目標有關。

So we're going to have to see how it goes.

所以我們將不得不看看它是如何進行的。

But -- so that's -- that question -- on the Cat 9K, look, we're still incredibly early.

但是 - 這就是 - 那個問題 - 在 Cat 9K 上，看，我們還早得令人難以置信。

I mean, it's incredibly early.

我的意思是，這太早了。

We just launched another product that addresses a market size similar to what we launched 1.5 years ago.

我們剛剛推出了另一款產品，其市場規模與我們 1.5 年前推出的產品相似。

And so we're just on the front end of it.

所以我們只是在它的前端。

And as customers adopt that architecture, then you're seeing -- we announced the wireless portfolio that's going to fit within that.

當客戶採用該架構時，您就會看到——我們宣布了適合該架構的無線產品組合。

In the spring, you'll see SD-WAN get integrated into the overall architecture in addition to the innovation we announced this week.

在春季，除了我們本周宣布的創新之外，您還會看到 SD-WAN 被集成到整體架構中。

So we feel good about where we are, and we'll see how the macro plays out.

因此，我們對自己所處的位置感到滿意，我們將看看宏觀經濟如何發揮作用。

And Paul, on the price, we saw, from a rate impact on price, about 1.9 points down.

保羅，在價格方面，我們看到，從價格對價格的影響來看，下降了大約 1.9 個百分點。

So slightly up from what it has on the last couple of quarters, but still better than it was, say, in Q1 of '18, but a slight tick-up, 1.9 points.

與過去幾個季度相比略有上升，但仍比 18 年第一季度好，但略有上升，1.9 個百分點。

Samik Chatterjee from JPMC.

JPMC 的 Samik Chatterjee。

Kind of the macro question, which is just to focus on your EMEA business.

一種宏觀問題，只是關注您的 EMEA 業務。

You had a strong quarter there.

你在那裡有一個強勁的季度。

Which are the countries kind of driving that strength?

哪些國家在推動這種力量？

And as we kind of get to this point where we have some more clarity building around Brexit, how do you -- are you seeing any kind of enterprise customers starting to sort of step -- come off the fences and start to invest a bit more, given that there's now more clarity building around what the eventual deals will look like?

當我們達到這一點時，我們圍繞 Brexit 建立了更多的清晰度，你如何 - 你是否看到任何類型的企業客戶開始採取某種步驟 - 擺脫圍欄並開始投資更多，鑑於現在圍繞最終交易的樣子有了更多的清晰度？

Again, I'll make some color commentary, and I'll let Kelly give you some details there on the numbers.

再一次，我會做一些顏色評論，我會讓凱利給你一些關於數字的細節。

But I think that, for us, Europe has held up in a time where there's been ongoing uncertainty, and I think this shows the resilience that we've seen around the world in the face of a lot of uncertainty.

但我認為，對我們來說，歐洲在一個持續存在不確定性的時代堅持了下來，我認為這顯示了我們在世界各地看到的面對大量不確定性的韌性。

You have Brexit.

你有英國脫歐。

You've got Italy.

你有意大利。

You've had elections.

你有過選舉。

You've got Merkel's announcement, and yet we still see continued strength.

你收到了默克爾的聲明，但我們仍然看到了持續的力量。

And we -- it's been pretty consistent for the last, what, Kelly, 4 to 6 quarters, I'd say.

而且我們 - 它在最後一個非常一致，什麼，凱利，4 到 6 個季度，我會說。

It's been fairly consistent growth.

這是相當穩定的增長。

So our teams are doing a good job there.

所以我們的團隊在那裡做得很好。

I think that we're continuing to execute.

我認為我們正在繼續執行。

And I think that any clarity on any of these issues like Brexit can do nothing but help in my opinion.

而且我認為，在我看來，對英國退歐等任何這些問題的任何澄清都無濟於事。

So Kelly?

那麼凱利？

Yes.

是的。

No, I'd just say it is very broad-based.

不，我只是說它的基礎非常廣泛。

I'd say Enterprise is exceptionally strong.

我會說 Enterprise 非常強大。

So it's -- there is no -- and the U.K. specifically has been pretty good for us over the last, as I said, the last 4 quarters.

所以它 - 沒有 - 正如我所說，過去 4 個季度，英國在過去對我們特別有利。

So I think it does just go back to it's a resilient IT environment.

所以我認為它確實只是回到了它的彈性 IT 環境。

Jim Suva from Citigroup Global Markets.

花旗集團全球市場部的 Jim Suva。

It's Jim Suva.

我是吉姆·蘇瓦。

I just have one question, and that is on memory pricing.

我只有一個問題，那就是內存定價。

Can you just remind us of -- the memory pricing was going up, say, the past 12 or 24 months with the actions the company did.

你能否提醒我們——內存價格在過去 12 或 24 個月內隨著公司採取的行動而上漲。

And more importantly, what is the strategy going forward as memory pricing appears to have softened?

更重要的是，隨著內存定價似乎已經走軟，未來的戰略是什麼？

How should we think about that in your strategy or pricing impact to your company?

我們應該如何考慮您的戰略或定價對您公司的影響？

Yes.

是的。

So the historical -- what we did was memories around DRAM specifically.

所以歷史——我們所做的是專門圍繞 DRAM 的記憶。

It was a combination of just prices going up and consistently for all of '17 and '18, and it was a very tight supply.

這是整個 17 年和 18 年價格持續上漲的綜合結果，而且供應非常緊張。

So our strategy was securing supply.

所以我們的策略是確保供應。

We bought inventory ahead.

我們提前購買了存貨。

We did everything we could to try to minimize the impact.

我們竭盡所能將影響降到最低。

We had big purchase commitments.

我們有很大的購買承諾。

And we are still seeing year-over-year price increases.

而且我們仍然看到價格同比上漲。

In this quarter, we still are seeing the prices being higher than they were a year ago.

在本季度，我們仍然看到價格高於一年前。

The good news is, though, when we look forward, and like I alluded to in the last call, we should see it go from a headwind to a tailwind starting in the second half of our fiscal quarters.

不過，好消息是，當我們展望未來時，就像我在上次電話會議中提到的那樣，我們應該會看到它從我們財政季度的下半年開始從逆風變成順風。

So Q3 and Q4, we fully, fully expect the DRAM to be a tailwind for us, which will be good.

所以第三季度和第四季度，我們完全、完全期待 DRAM 成為我們的順風，這將是一件好事。

And this quarter had an impact.

這個季度產生了影響。

There will be less of an impact next quarter, and then we get to goodness.

下個季度的影響會變小，然後我們就會變得很好。

And we did -- much like we're doing with tariffs, we did pass through a lot of the memory costs through price increases over that time as well.

我們做到了——就像我們對關稅所做的那樣，我們確實通過那段時間的價格上漲來轉嫁了很多內存成本。

Tejas Venkatesh from UBS.

來自瑞銀的 Tejas Venkatesh。

I'm on for John Roy.

我支持約翰·羅伊。

I wanted to focus on the Enterprise orders, which were up 15%, I think the best since 2011.

我想關注企業訂單，增長了 15%，我認為是 2011 年以來最好的。

Where is that strength coming from?

哪裡來的力量？

And are there businesses that are accelerating versus the reported quarter?

與報告的季度相比，是否有業務正在加速發展？

And maybe, secondly, somewhat related.

其次，也許有些相關。

You called out strength in Service Provider Routing.

您在服務提供商路由方面大顯身手。

But Enterprise Routing is a significant portion of your Routing business, and it was down a lot last year after the Viptela acquisition.

但企業路由是您路由業務的重要組成部分，去年在收購 Viptela 後下降了很多。

Now that, that's partly integrated, how's it going?

既然已經部分整合，進展如何？

So I would say, if you look at our Enterprise business, it was incredibly consistent globally.

所以我想說，如果你看看我們的企業業務，它在全球範圍內非常一致。

It was incredibly consistent across the breadth of our portfolio.

它在我們的整個產品組合中都非常一致。

I think every product category we had grew in the Enterprise space.

我認為我們在企業領域發展的每個產品類別。

And it's largely driven by the strategy in the automation side that we brought forward with this represented in sort of proxy by the Cat 9K from a revenue perspective.

這在很大程度上是由我們提出的自動化方面的戰略驅動的，從收入的角度來看，這代表了 Cat 9K 的代理。

We've also -- our team and we talked about this before.

我們也 - 我們的團隊和我們之前討論過這個問題。

Back in Q4 of '18, if you go back to the Q3 call, we said that we felt confident that the SD-WAN solutions would begin to be rolled out in Q4.

回到 18 年第 4 季度，如果你回到第 3 季度的電話會議，我們說過我們有信心 SD-WAN 解決方案將在第 4 季度開始推出。

We saw that, and so we've seen continued adoption of that.

我們看到了這一點，因此我們看到了對它的持續採用。

And I think with the announcements we made this week with the native integration into our cloud security portfolio that you'll even see that continue.

而且我認為，隨著我們本週發布的本機集成到我們的雲安全產品組合中的公告，您甚至會看到這種情況仍在繼續。

So I think the -- our teams are doing a good job with helping our customers understand the costs and the operational simplicity that they can gain from some of the architectures that we're bringing forward, and I think that's what's driving it.

所以我認為 - 我們的團隊在幫助我們的客戶了解他們可以從我們提出的一些架構中獲得的成本和操作簡單性方面做得很好，我認為這就是推動它的原因。

Kelly, any comments on this?

凱利，對此有何評論？

Yes.

是的。

No, I mean, it was across all -- basically, we were up across -- when I look across our businesses, basically just about everywhere.

不，我的意思是，當我審視我們的業務時，基本上幾乎無處不在。

So it was, again, broad-based.

因此，它再次具有廣泛的基礎。

Sami Badri from Crédit Suisse.

瑞士信貸銀行的 Sami Badri。

My main question has to do with service provider growth in the quarter And you made a comment earlier about India being up 50%.

我的主要問題與服務提供商在本季度的增長有關，您之前曾說過印度增長了 50%。

If you were to exclude the India growth in the quarter, would Service Provider be flat to down?

如果您排除本季度印度的增長，服務提供商會持平還是下降？

Maybe give some perspective on that.

也許對此給出一些看法。

And then the second part is, as you think about Service Provider, the Service Provider segment or the customer vertical in next year or 2, are you seeing some customer spend being held back with the onset of 5G spending and deployments coming into the picture?

然後第二部分是，當你考慮明年或兩年的服務提供商、服務提供商細分市場或垂直客戶時，你是否看到一些客戶支出隨著 5G 支出和部署的出現而受到抑制？

And if we were to see a 5G revenue type of spending deployment or acceleration, where in the next 4 quarter do you think that would start to be very noticeable?

如果我們要看到 5G 收入類型的支出部署或加速，您認為在接下來的第 4 個季度中，這會在哪裡開始變得非常引人注目？

Let me get...

讓我拿...

Go ahead, Kelly.

來吧，凱利。

Yes, I'll take the first one on the Service Provider excluding India.

是的，我將在不包括印度的服務提供商中使用第一個。

I will just say that our Service Provider segment was up in the Americas and EMEA as well.

我只想說，我們的服務提供商部分在美洲和 EMEA 也有所上升。

So again, it was...

所以，又是...

Positive everywhere.

處處積極。

It was not driven by India.

它不是由印度驅動的。

Though, India had a very strong Service Provider as well.

不過，印度也有非常強大的服務提供商。

But it was up.

但它已經起來了。

Up everywhere.

無處不在。

Yes.

是的。

I would say just a quick characterization on this market, and we've talked about this before.

我只想快速描述一下這個市場的特徵，我們之前已經討論過這個問題。

Different customers, different markets are in different phases of their architectural transitions.

不同的客戶、不同的市場處於其架構轉換的不同階段。

And we're seeing, in Asia, we had a couple of big wins obviously where we're helping them rearchitect their networks, try to simplify their architectures.

我們看到，在亞洲，我們顯然取得了一些重大勝利，我們正在幫助他們重新構建他們的網絡，試圖簡化他們的架構。

And a lot of that is, in some ways, to prepare for 5G.

在某些方面，其中很多是為 5G 做準備。

So we're executing better and -- but I think -- I'll still say we've been saying is that we've been doing planning with many of the customers on 5G.

所以我們執行得更好 - 但我認為 - 我仍然會說我們一直在說我們一直在與許多 5G 客戶進行規劃。

I had a call with one CEO today talking about their roll-out plans.

我今天與一位首席執行官通了電話，討論了他們的推出計劃。

So we're actively in the discussions, and our teams are working on architectural designs to accommodate.

所以我們積極參與討論，我們的團隊正在致力於架構設計以適應。

You're going to see them go into trials.

你會看到他們進入試驗。

In fact, you've all heard some of the U.S. providers are going into trials in the first quarter of next calendar year.

事實上，你們都聽說過一些美國供應商將在下個日曆年的第一季度進行試驗。

I still believe it'll be calendar 2020 before we see anything -- if we're looking for some broad-based movement.

我仍然相信在我們看到任何東西之前將是 2020 日曆年——如果我們正在尋找一些基礎廣泛的運動。

But we'll see how it goes if they move faster, then obviously, we could be a beneficiary of that.

但如果他們行動得更快，我們會看到情況如何，顯然，我們可以從中受益。

But we're staying close to it right now.

但我們現在離它很近。

Jeff Kvaal from Nomura Instinet.

來自 Nomura Instinet 的 Jeff Kvaal。

Yes, I have a question and a clarification.

是的，我有一個問題和一個澄清。

The question is, on the 400-gig side, I think some of your peers in the space are hoping that this will be an opportunity for them to make insertions into the webscale market.

問題是，在 400 gig 方面，我認為該領域的一些同行希望這將是他們進入 webscale 市場的機會。

It seems, Chuck, from your language that you're focused primarily on the Enterprise market.

Chuck，從您的語言來看，您似乎主要關注企業市場。

So I guess, I'm wondering, if not now for web scale, when?

所以我想，我想知道，如果不是現在用於網絡規模，什麼時候？

If I have that right.

如果我有那個權利。

And then, Kelly, maybe on a clarification side.

然後，凱利，也許是在澄清方面。

Could you help us understand if you've baked anything into the January outlook or pass-throughs of memory prices or increases in tariffs or what have you?

您能否幫助我們了解您是否將任何內容納入 1 月份的展望或內存價格的傳遞或關稅增加或您有什麼？

Yes.

是的。

So Jeff, my apologies if I misrepresented our 400-gig strategy.

所以傑夫，如果我歪曲了我們的 400 演出戰略，我深表歉意。

I think I said in the script that we were -- in the opening comments that we were absolutely focused on web scale.

我想我在劇本中說過，在開場評論中，我們絕對專注於網絡規模。

And I think this does represent an architectural transition that gives nonincumbents the opportunity to insert.

我認為這確實代表了一種架構轉變，讓非現任者有機會加入。

So we will look for those opportunities as well.

所以我們也會尋找這些機會。

I think when you look at the 400-gig advantages we have, we're bringing forward much like we do with the Nexus.

我認為，當您查看我們擁有的 400 兆字節優勢時，我們會像對待 Nexus 一樣向前推進。

We're going to have a merchant version, and we then have an ASIC-based version we'll be delivering.

我們將有一個商業版本，然後我們將提供一個基於 ASIC 的版本。

We have telemetry.

我們有遙測。

We've got optics, security automation, backward and forward compatibility that are going to provide differentiators for us.

我們擁有光學、安全自動化、向後和向前兼容性，這些將為我們提供差異化優勢。

We're co-chairing some standard boards.

我們共同主持了一些標準委員會。

We can extend ACI from the private cloud into the public cloud across these.

我們可以跨這些將 ACI 從私有云擴展到公共雲。

So we think we have a lot of advantages.

所以我們認為我們有很多優勢。

The teams -- we have the ability to analyze data flows, with security ACI automation policy.

團隊——我們有能力使用安全 ACI 自動化策略分析數據流。

So the whole intent-based portfolio that our teams in the Data Center actually introduced years ago, we think will be a big differentiator as well as the breadth of the options that we'll have in the 400-gig space.

因此，我們的數據中心團隊多年前實際推出的整個基於意圖的產品組合，我們認為將是一個很大的差異化因素，以及我們在 400 兆空間中擁有的選項的廣度。

But we absolutely do see the web scale as an opportunity that we're going to go after here.

但我們絕對確實將網絡規模視為我們將在這裡追求的機會。

And on the clarification.

並在澄清。

So yes, in the January outlook, like I said when I was talking about component costs and memory costs, I still have some bit of a -- I will have still a headwind in Q2 from memory as well as some costs around the MLCCs.

所以是的，在 1 月份的展望中，就像我在談論組件成本和內存成本時所說的那樣，我仍然有一些 - 我在第二季度仍然會遇到來自內存的逆風以及 MLCC 的一些成本。

And I have an assumption baked in on certainly the tariff costs if they go up to 25% as well as an assumption on what we can offset with the prices pushing through.

如果關稅成本上升到 25%，我有一個假設，當然還有一個假設，即我們可以用推動的價格抵消什麼。

And so it's all incorporated in the guide I gave you on the gross margin.

所以這一切都包含在我給你的毛利率指南中。

Yes.

是的。

I'm sorry, Kelly.

對不起，凱利。

I meant on the revenue side.

我的意思是在收入方面。

The pass-through on tariffs or memory.

關稅或記憶的轉嫁。

How much is that?

那個多少錢？

Yes.

是的。

So it's the same.

所以是一樣的。

I will tell you from an overall perspective.

我會從整體的角度告訴你。

Let's assume they do cut in, in January.

讓我們假設他們確實在 1 月份切入。

Because we will honor quotes.

因為我們會尊重報價。

If they have quotes in the system that they took that we haven't taken a order yet, it'll take a while before both the price increase cuts through as well as even when the tariffs do cut in the cost side, we'll bleed through the inventory that has been brought in at the lower costs.

如果他們在系統中有我們尚未接受訂單的報價，則需要一段時間才能實現價格上漲，甚至當關稅確實降低成本時，我們也會消耗以較低成本引入的庫存。

So the real full, big impact we'll see, feel when the tariffs go to 25%, if they go to 25%, we'll be in the third quarter.

因此，當關稅達到 25% 時，我們將看到真正全面、巨大的影響，如果達到 25%，我們將在第三季度看到。

But I have baked in some incremental on both the revenue and the margin side in -- from January.

但從一月份開始，我已經在收入和利潤方面增加了一些增量。

Srini Pajjuri from Macquarie Capital.

來自麥格理資本的 Srini Pajjuri。

Kelly, one clarification on the question.

凱利，關於這個問題的一個澄清。

First on ASC 606, is it just a one-quarter benefit to revenue?

首先在 ASC 606 上，它只是四分之一的收入收益嗎？

Or do you expect any more in Q2 or going forward?

或者你對第二季度或未來有更多的期望嗎？

And then the question is, you talked a little bit about some of the metrics that you used to give us on the recurring front not being as well as in going forward.

然後問題是，你談到了一些你曾經在經常性方面給我們的指標，而不是在前進方面。

Could you give us some more color on that and what sort of metrics that we should focus on and then if you have any targets for those new metrics going forward?

你能給我們更多的顏色嗎？我們應該關注什麼樣的指標，然後你是否對這些新指標有任何目標？

So on the first question on ASC 606, so we will benefit from that going forward.

關於 ASC 606 的第一個問題，我們將從中受益。

The point I was making earlier was this was a little abnormal this quarter because we had 2 very large enterprise multi-year deals that were very heavy software content that we recognized now -- on the new accounting rules recognized upfront.

我之前提出的觀點是，本季度這有點不正常，因為我們有 2 筆非常大的企業多年期交易，這些交易是我們現在認識到的非常重要的軟件內容——根據預先認可的新會計規則。

Just to remind everybody of where we are impacted on mostly from ASC 606.

只是為了提醒大家我們主要受到 ASC 606 影響的地方。

When we have enterprise agreements, whether it is our term-based or not, we will be recognizing them upfront if, basically, the functionality of the software goes to the customer.

當我們有企業協議時，無論是否基於我們的條款，如果軟件的功能基本上交給客戶，我們將提前確認它們。

So a lot of the enterprise agreements we have will all be recognized upfront.

因此，我們擁有的許多企業協議都將得到預先認可。

Cisco ONE, for example, a lot of that's going to be recognized upfront.

例如，Cisco ONE，其中很多都會被預先識別。

And even a portion of our Enterprise Networking like the Cat 9K subscription, a portion of that now will be upfront, even though some is still deferred.

甚至我們企業網絡的一部分，如 Cat 9K 訂閱，其中一部分現在將是預付的，儘管有些仍被推遲。

So it's accelerating basically big Enterprise license agreements.

因此，它基本上正在加速大型企業許可協議。

So this quarter, we had 2 very large ones, but we will be benefiting going forward.

所以這個季度，我們有 2 個非常大的，但我們將在未來受益。

And again, it's incorporated in the guide.

再一次，它包含在指南中。

And overall, long term, it'll be in the 1%, 1.5% kind of range.

總體而言，從長遠來看，它將處於 1%、1.5% 的範圍內。

Yes.

是的。

I just want to make a comment.

我只是想發表評論。

When we set out to move to more of a software and subscription model, the real benefit for us is it gives us the opportunity to go in and monetize those licenses again in 3 years.

當我們開始轉向更多的軟件和訂閱模式時，對我們來說真正的好處是它讓我們有機會在 3 年內再次通過這些許可證獲利。

That has not changed.

那沒有改變。

And that was the big benefit.

這是最大的好處。

Because if you looked at the way we sold the switch previously, as an example, we would sell a switch with integrated software one time, and perhaps, 5 to 7 years later, we'd go in and try to sell another one.

因為如果你看看我們以前銷售交換機的方式，例如，我們會銷售一次帶有集成軟件的交換機，也許 5 到 7 年後，我們會嘗試銷售另一種。

In this model, the underlying ability for us to go in at either the 3-year, the 5-year point, whenever that subscription is up, and renew it, that still exists.

在這個模型中，我們在 3 年期、5 年期訂閱到期時繼續訂閱並續訂的潛在能力仍然存在。

This is just an accounting change.

這只是一個會計變更。

So the underlying value to our business is still valid.

因此，我們業務的潛在價值仍然有效。

So we're going to continue to move very hard in this direction.

所以我們將繼續朝著這個方向努力前進。

And so on the metrics then here, second question there.

然後這裡是指標，那裡是第二個問題。

So that's why to that point, we think the right metric is looking -- of our software, what percentage is subscriptions, right?

所以這就是為什麼到那時，我們認為正確的指標正在尋找 - 我們的軟件，訂閱的百分比是多少，對嗎？

And that continues to just increase.

而且這種情況還在繼續增加。

And I'll use the Cat 9K as an example.

我將以 Cat 9K 為例。

We've talked in the past where we used to sell the previous switch sold for $100, and we recognized $100 upfront.

我們過去曾談過，我們以前以 100 美元的價格出售以前的開關，我們預先確認了 100 美元。

We're selling the Cat before ASC 606, we sold that.

我們在 ASC 606 之前出售 Cat，我們賣掉了它。

Cat 9K for $100, but 25% of it was deferred.

Cat 9K 售價 100 美元，但其中 25% 的費用被推遲。

And we recognized that 25% over, say, a 3-year term.

我們認識到 25% 超過 3 年期限。

And then they would renew it for another 3-year term.

然後他們會再續簽 3 年任期。

With ASC 606, that 25% that was deferred, about 12% is now deferred, and other 11 is recognized upfront.

使用 ASC 606，那 25% 被推遲，現在大約 12% 被推遲，其他 11% 被提前確認。

But that full 25% is what we renew.

但那完整的 25% 是我們更新的內容。

And so that's why when you look at the software, that's still subscription software.

這就是為什麼當您查看該軟件時，它仍然是訂閱軟件。

That's why we think that's the relative metric.

這就是為什麼我們認為這是相對指標。

We don't think the -- like looking at our deferred revenue, we looked at that in the past.

我們不認為 - 就像查看我們的遞延收入一樣，我們過去看過它。

I mean, that was a proxy.

我的意思是，那是一個代理。

But as you saw from our disclosures, we wrote off $1.3 billion of that balance with the adoption all of the new standard for those enterprise agreements and for Cisco ONE.

但正如您從我們的披露中看到的那樣，我們通過為這些企業協議和 Cisco ONE 採用所有新標準而註銷了 13 億美元的餘額。

So looking at that isn't as meaningful.

所以看那個沒有意義。

And even with the recurring, like using that Cat 9K example, it's not as meaningful.

即使反復出現，比如使用 Cat 9K 示例，它也沒有那麼有意義。

That's kind of why we think using subscriptions, it shows we're still making the transformation.

這就是我們考慮使用訂閱的原因，它表明我們仍在進行轉型。

It's shows that we're making progress and have that -- again, nothing has changed with the customer.

這表明我們正在取得進展並且取得了進展 - 同樣，客戶沒有任何改變。

We still have that stickiness of having that subscription and the ability to continue to build out our offers with them.

我們仍然有那種訂閱的粘性，並且有能力繼續與他們一起構建我們的報價。

James Fish from Piper Jaffray.

來自 Piper Jaffray 的 James Fish。

Just quick one for me.

給我一個快點。

The Edge is a topic popping up more and more.

邊緣是一個越來越多的話題。

I guess, what are your thoughts around the move towards a distributed environment?

我想，您對轉向分佈式環境有何看法？

How that will impact Cisco?

這將如何影響思科？

And what investments are being made to win there?

在那裡進行了哪些投資以贏得勝利？

And just secondly, there's been a lot of larger M&A over the last few months.

其次，在過去幾個月裡發生了很多規模更大的併購。

How is Cisco viewing the M&A pipeline today?

思科如何看待當今的併購管道？

And if a large enough deal were to come along, would this impact that share buyback plan?

如果達成足夠大的交易，這會影響股票回購計劃嗎？

So let me talk a little bit about the Edge, and I'm going to pile on with a little bit of the cloud, a little bit of discussion around what we see happening with applications in the cloud and some of our announcements, and then we'll talk about the M&A question.

因此，讓我談談 Edge，我將繼續談一點雲，圍繞我們看到的雲應用程序發生的事情以及我們的一些公告進行一些討論，然後我們將討論併購問題。

So first off, the Edge is incredibly important, and I think that's what's leading us, in many cases, to some of these strategic partnerships that you hear us building with the webscale providers.

因此，首先，Edge 非常重要，我認為在許多情況下，這就是我們與 webscale 提供商建立戰略合作夥伴關係的原因。

Some of those are multifaceted where there's an Edge component involved.

其中一些是多方面的，其中涉及邊緣組件。

Because for us to be able to aggregate the data and give the application developers the ability to run microservices at the Edge, that's why we put x86 into our access products so that you can actually run services from within applications out at the Edge and process data as you need to.

因為我們能夠聚合數據並為應用程序開發人員提供在邊緣運行微服務的能力，所以我們將 x86 放入我們的訪問產品中，以便您實際上可以在邊緣的應用程序內部運行服務並處理數據因為你需要。

We've also built some data fabric technologies like Kinetic that are being used by our customers today.

我們還構建了一些數據結構技術，例如今天我們的客戶正在使用的 Kinetic。

Very early days.

很早的時候。

So we think that what this Edge dynamic does is it gives us the ability to rearchitect the Edge like what you're seeing with SD-WAN.

因此，我們認為這種 Edge 動態的作用是讓我們能夠像您在 SD-WAN 中看到的那樣重新構建 Edge。

But frankly, it makes the network more relevant in the world that we live in today.

但坦率地說，它使網絡與我們今天生活的世界更加相關。

Because the traffic flows and where the data is, where the applications are, where your users are, it's all just fundamentally dynamic.

因為流量的流動以及數據的位置、應用程序的位置、您的用戶的位置，它們基本上都是動態的。

And so you have the architect an environment that accommodates for anything, anywhere.

因此，您為架構師提供了一個可以隨時隨地容納任何事物的環境。

And so we think that this is actually good for us over time, and we'll continue to build technology that enables our customers to deal with it.

因此，我們認為隨著時間的推移，這實際上對我們有好處，我們將繼續構建技術，使我們的客戶能夠處理它。

The other thing I want to just talk about relative to this because part of the reason that these webscale partnerships are so important is that we are enabling these developers with things like the Kubernetes solution that we have to actually build applications once and then move them seamlessly between private cloud and public cloud.

我想談談與此相關的另一件事，因為這些網絡規模合作夥伴關係如此重要的部分原因是我們正在為這些開發人員提供諸如 Kubernetes 解決方案之類的東西，我們必須實際構建一次應用程序，然後無縫地移動它們介於私有云和公有云之間。

And we did that with our Google announcement.

我們通過 Google 公告做到了這一點。

We've done it with our Amazon announcement.

我們已經通過我們的亞馬遜公告做到了這一點。

So what I think is going to happen is instead of creating this complex software architecture at the core that is necessary to map applications back and forth, for future apps, they're going to be built on Kubernetes, and we're going to give the customers -- if they want to start on the public cloud, they can seamlessly move them into the private cloud or if they've build in them in the private cloud, they can move them in the public cloud.

所以我認為將要發生的事情不是在核心創建複雜的軟件架構，這是來回映射應用程序所必需的，對於未來的應用程序，它們將構建在 Kubernetes 上，我們將提供客戶——如果他們想從公共雲開始，他們可以無縫地將它們轉移到私有云中，或者如果他們已經在私有云中構建了它們，他們可以將它們轉移到公共雲中。

And with our ACI being extended into the cloud now, customers can actually seamlessly take their policy in an ACI architecture and extend it into any cloud that they like.

隨著我們的 ACI 現在擴展到雲中，客戶實際上可以在 ACI 架構中無縫地採用他們的策略並將其擴展到他們喜歡的任何云中。

So we're trying to make that simple, and we think the combination of that and the Edge actually brings the network much more value in the future.

因此，我們正在努力使它變得簡單，我們認為它與 Edge 的結合實際上會在未來為網絡帶來更多價值。

Those were the questions?

這些是問題？

About M&A pipeline.

關於併購管道。

Oh, M&A.

哦，併購。

Sorry, Jim.

對不起，吉姆。

We've always said we'll look at any opportunity that arises, if it is strategically aligned and it's good for our fiscally.

我們一直說我們會考慮任何出現的機會，如果它在戰略上保持一致並且對我們的財政有利。

And I would say that the deals that you've seen done over the last few months have 0 bearing on how we think about it.

我想說的是，你在過去幾個月看到的交易對我們的看法沒有影響。

We continue to look at the opportunities that makes sense for us and our part of our financial plan and makes sense for us in that perspective, and that's how we'll continue to look at it.

我們繼續尋找對我們有意義的機會和我們財務計劃的一部分，並從這個角度對我們有意義，這就是我們將繼續看待它的方式。

That comes from Simon Leopold with Raymond James.

那來自西蒙利奧波德和雷蒙德詹姆斯。

I just wanted to ask one quick one and one thematic.

我只想問一個快速的一個主題。

On the quick one, there were some press reports about layoffs.

很快，有一些關於裁員的新聞報導。

And I know Cisco regularly does some pruning.

我知道思科會定期進行一些修剪。

If you could address that.

如果你能解決這個問題。

And thematically, I'd like to get an understanding of how you think about the SD-WAN products.

從主題上講，我想了解您對 SD-WAN 產品的看法。

You've been in this marketplace for a while now, and it looks like it's getting traction.

你已經進入這個市場一段時間了，看起來它越來越受歡迎了。

But my thought is this is a headwind for your router business but a tailwind for the SD-WAN platform.

但我的想法是，這對您的路由器業務來說是不利因素，但對 SD-WAN 平台來說是有利因素。

So how do you see this playing out over, let's say, the next several quarters?

那麼你如何看待這種情況，比方說，接下來的幾個季度？

Okay.

好的。

So let me address both.

所以讓我來解決這兩個問題。

The first is that the restructuring that's going on right now is, first of all, it's not an OpEx reduction, and we've -- I've actually taken this issue and talked head on with our employees about what's going on right now very directly.

首先是目前正在進行的重組，首先，這不是減少運營支出，而且我們已經——我實際上已經解決了這個問題，並與我們的員工直接討論了目前正在發生的事情。直接地。

And majority of this is part of the customer experience transition.

其中大部分是客戶體驗轉變的一部分。

If you look at what we've done relative to the software portfolio and how we're building out these offers for our customers, any great software company has a very successful customer experience organization.

如果你看看我們在軟件產品組合方面所做的工作，以及我們如何為客戶構建這些產品，就會發現任何一家偉大的軟件公司都有一個非常成功的客戶體驗組織。

And if you'll recall, we brought in Maria Martinez from Salesforce back in May of this year, and she has been putting together a strategy for how we need to be structured for the future.

如果你還記得的話，我們在今年 5 月從 Salesforce 引進了 Maria Martinez，她一直在製定一項戰略，說明我們未來需要如何構建。

And this is actually just -- it's an unfortunate step that we needed to take in order to expeditiously get to where we need to be relative to dealing with the renewals and the life cycle that our customers are going to want us to drive with them in this new portfolio.

這實際上只是 - 這是我們需要採取的一個不幸的步驟，以便迅速到達我們需要相對於處理續訂和客戶希望我們與他們一起推動的生命週期的地方這個新的投資組合。

So that's really the predominant driver for what's going on right now.

所以這真的是目前正在發生的事情的主要驅動力。

And again, I've been very clear with our employees.

再一次，我對我們的員工非常清楚。

We've been very open and transparent with them about what's going on.

我們對他們正在發生的事情一直非常開放和透明。

On the SD-WAN side, I think you're -- it's probably generally accurate, what you described.

在 SD-WAN 方面，我認為你 - 你所描述的可能通常是準確的。

However, I think that there's been such a stall in the Enterprise routing business for the last couple of years waiting for this to take off that I would view it as a net positive now because we have movement.

然而，我認為在過去的幾年裡，企業路由業務一直停滯不前，等待它起飛，我現在認為它是一個淨積極因素，因為我們有動作。

And you got to remember, many branches are going to -- they're going to leverage SD-WAN technology on top of one of our ISRs anyway.

你必須記住，許多分支機構將會——無論如何，他們將在我們的一個 ISR 之上利用 SD-WAN 技術。

So you're going to see various flavors at the Edge.

所以你會在 Edge 看到各種不同的風格。

You're going to see some software only on x86 type platforms all the way up to software running on high-end ISRs because you still need a high-performance branch but you want the flexibility in how you dynamically route your traffic out of that branch.

你會看到一些軟件只在 x86 類型的平台上運行，一直到在高端 ISR 上運行的軟件，因為你仍然需要一個高性能分支，但你希望在如何動態地將流量路由出該分支方面具有靈活性.

So I view it as a positive.

所以我認為這是積極的。

And frankly, I think when you see the Enterprise business, the consistency we've seen over the last few quarters, I think SD-WAN is a big part of that.

坦率地說，我認為當你看到企業業務時，我們在過去幾個季度看到的一致性，我認為 SD-WAN 是其中的重要組成部分。

Just a couple of comments.

只是一些評論。

I think I'll just leave you with I think that our teams are executing incredibly well.

我想我會告訴你我認為我們的團隊執行得非常好。

There's clearly some uncertainty out there, but I think the macroeconomy has shown a level of resilience that not many people expected.

顯然存在一些不確定性，但我認為宏觀經濟表現出的彈性水平超出了很多人的預期。

I think that what we're beginning to see and what is coming through here is that while the cloud 4 or 5 years ago was viewed as an existential threat to our business, I fundamentally believe that the cloud and the transition to the cloud that our customers are undergoing is actually driving our growth now.

我認為我們開始看到的和正在經歷的是，雖然 4 或 5 年前云被視為對我們業務的生存威脅，但我從根本上相信雲和向雲的過渡我們的客戶正在經歷的實際上正在推動我們現在的增長。

So we feel good about where we are.

所以我們對自己的處境感覺良好。

We feel good about the innovation, and we feel good about our team's execution.

我們對創新感到滿意，對我們團隊的執行力也感到滿意。

Thank you guys for joining us, and we look forward to talking to you next quarter.

感謝你們加入我們，我們期待下個季度與你們交談。

Thank you, Chuck.

謝謝你，查克。

Go ahead, Michelle.

去吧，米歇爾。

And thank you for participating on today's conference call.

感謝您參加今天的電話會議。

If you would like to listen to the call in its entirety, you may dial (866) 417-5767.

如果您想完整收聽電話，可以撥打 (866) 417-5767。

For participants dialing from outside the U.S., please dial (203) 369-0735.

對於來自美國境外的參與者，請撥打 (203) 369-0735。

This concludes today's call.

今天的電話會議到此結束。

You may disconnect at this time.

此時您可以斷開連接。