IP phone communications:

In a quarter when many of your peers and competitors have struggled, Cisco’s results are particularly noteworthy. What are you seeing and experiencing that is unique?

John Chambers: Our vision, strategy and execution are clearly working. Cisco’s balanced approach to the market in terms of our four customer segments, core and advanced technologies, business and technology architecture, combined with our five key geographic theaters continues to work very well. These strong results indicate that both our vision of how the industry is going to evolve as well as our strategy has positioned Cisco for continued leadership in the industry.

In very general terms as intelligence moves throughout the network, the network is becoming the primary driver of not only IT, but also all forms of communications. If this is the way the market evolves, and we believe it will, Cisco is very uniquely positioned to lead in both communications and IT enabled by the network.

The momentum we are seeing makes us comfortable that not only are we winning versus most of our competitors in the marketplace, but anticipating and positioning our customers effectively for market transitions. Whether it’s convergence of data, voice, video, and mobility, architectural evolutions, or intelligence throughout the network, we believe Cisco is uniquely positioned to enable the future of IT and communications.

That said, we will continue to monitor our peers and the overall market to better understand the concerns they are experiencing.