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MARIA: WELCOME BACK,
TECHNOLOGY AMONG GROWTH
STORIES GLOBALLY RIGHT NOW IN
A WORLD WHERE PEOPLE ARE
UNSURE OF THE GLOBAL GROWTH
ESPECIALLY IN THE FACE OF
CYBERSECURITY, AND SURPRISES
ISSUES TAKING CENTER STAGE CEO
CISCO CHUCK ROBBINS GOOD TO
SEE YOU THANKS SO MUCH FOR
JOINING US YOU'VE GOT A LOT OF
CATLIFTS ON THE HORIZON 5G
SECURITY, CLOUD TRANSITION
TELL ME HOW GROWTHS LOOK INS
YOUR STANDPOINT.
>> MARIA FIRST OF ALL, IT IS
-- THE SECURITY HACKER TO BE
BUILT WITH CUSTOMERS TODAY ARE
MUCH DIFFERENT THAN WHAT THEY
USED TO BE YOU THINK ABOUT
NONE OF OUR CUSTOMERS IN NEW
WORLD HAVE A PER I AMTER
VIRTUAL ENTERPRISE SECURITY
HAS TO BE BUILT IN NETWORK
YUING A.I. ALL THINGS WE LIKE
TO TALK ABOUT KEY AREA FOR US
IN ORDER TO DO THAT WE SEE OUR
CUSTOMERS HAVING TO REFRESH,
AND BUILD IN NEW
INFRASTRUCTURE THAT ACTUALLY
CAN PROVIDE THAT SO THAT IS A
BIG THING 5G BUILDOUT BIG
THING EARLY DAYS IOT BIG THERE
IS LOTS POSITIVES.
>> TELL ME WHAT YOU ARE SEEING
IN TERMS OF GROWTH RIGHT NOW
GIVEN THIS DOMINATING THEIM
THAT WE ARE SEEING IN GLOBAL
SLOWDOWN.
>> LIKE THE WORLD IS COMING TO
AN END?
>> I THOUGHT COMING HERE I
THOUGHT THE WORLD WAS COMING
TO END WAS CONVINCED BY ALL
THE PEOPLE, BUT REALITY IS, IS
THAT YOU KNOW, I LIKE OTHERS
HAVE SAID, WE RUN RISK OF
TALKING OURSELVES INTO
SOMETHING I TALK TO MY PEERS
WE ARE ASKING WHERE THIS IS
COMING FROM?
AND SO I THINK, THAT CLEARLY
THERE ARE LOTS OF GEOPOLITICAL
RISKS PRIMARILY I THINK
CLEARLY, A LOT OF US BENEFITED
FROM THE TAX REFORM IN 1R89
FROM THE TAX REFORM IN '189
FROM THE TAX REFORM IN '18,
BUILT IN THEY KNOW THAT
GEOPOLITICAL RISK BIGGEST
ONES, I THINK THAT MOST OF US
REMAIN OPTIMISTIC THAT WHETHER
BREXIT OR SHUTDOWN OR TRADE,
THAT THOSE THINGS ARE GOING TO
BE RESOLVED BECAUSE THEY JUST
NEED TO BE RESOLVED.
>> HAVE YOU SEEN CUSTOMERS
REACT TO THE UNCERTAINTIES IN
EUROPE LIKE BREXIT, LIKE THE
ITALIAN BUDGET ISSUES PERHAPS
THE ISSUES IN FRANCE.
>> I THINK AS YOU TALKED TO
FOLKS AROUND HERE I THINK MANY
HAVE SEEN YOU KNOW A LITTLE
BIT OF A SLOWDOWN NOT TALKING
ABOUT OUR BUSINESS A LITTLE
BIT OF A SLOWING IN EUROPE
LAST TWO OR THREE, FOUR
QUARTERS WHAT THEY TOLD ME IT
HASN'T BEEN PRECIPITOUS, AND
ANY TIME YOU SEE BREXIT,
YOU'VE GOT YOU KNOW THE BIT OF
UNCERTAINTY IN GERMANY
SITUATION IN FRANCE SITUATION
IN ITALY WOULD YOU EXPECT THAT
MIGHT BE THE CASE I ACTUALLY
BELIEVE THAT WE SHOULD BE
SUPER IMPRESSED WITH THE
RESILIENCE OF THE GLOBAL
ECONOMY IN FACE OF ALL THESE
THINGS THAT IS THE THING GIVES
ME HOPE AS WELL AS THE FACT
THAT HAVE A THE UNDERLYING
REASONS THAT SOME OF THESE
ISSUES NEED TO BE SOLVED IN
CONSTRUCTIVE WAY I THINK
PEOPLE HAVE TO SOLVE THEM THAN
US.
>> I KNOW YOU ARE REPORTING
EARNINGS NEXT WEEK -- PUBLIC,
YOU ARE IN QUITE PERIOD BUT
JUST TELL ME YOU DON'T SEE A
SLOWDOWN?
>> IN U.S.
>> WE JUST SEE GO BACK LAST
QUARTER WE GROO 8% I DON'T
KNOW DID SOMETHING HAPPEN LAST
90 DAYS FASTEST GROWTH QUARTER
WE HAVE SEEN IN YEARS AND
YEARS AND YEARS, SO I THINK
THE OTHER THING THAT WE
BELIEVE, IS IF YOU GO BACK
BEFORE THE LAST YOU KNOW
FINANCIAL CRISIS, IF YOU LOOK
AT IT ROLE OF TECHNOLOGY
PARTICULARLY IN A BUSINESS TO
BUSINESS WORLD WE TEND TO
FOCUS SO MUCH ON HE CONSUMER
TECHNOLOGY WE DON'T TALK ABOUT
THIS A LOT IF YOU LOOK AT THE
ROLE, THAT BUSINESS TECHNOLOGY
IS PLAYING, 10, 12 YEARS AGO
CUSTOMERS WOULD BUILD A
STRATEGY THEN TURN TO
OPERATIONS TEAMS TECHNOLOGY
TEAMS THEY WOULD SAY, DO WHAT
YOU NEED TO DO TO ENABLE OUR
STRATEGY.
AND TODAY, THERE -- BUILDING
THEIR STRATEGY BASED ON THEIR
UNDERSTANDING OF WHAT
TECHNOLOGY ALLOWS THEM TO DO
TECHNOLOGY AT CORE HOW FAR
THEY EVOLVE STRATEGY SO IT IS
NOT AN OPERATIONAL ENABLER NOT
SOMETHING WE NEED TO STOP
SPENDING RIGHT NOW IT IS PART
OF THEIR BUSINESS, SO I THINK
THAT WE YOU KNOW MY BELIEF IS,
THAT TECH COULD SEE LESS WE
WILL SEE IF IT PLAYS OUT COULD
SEE LESS OF A POTENTIAL YOU
KNOW, PRECIPITOUS FALLOFF AS
WE HAVE SEEN IN EARLIER
SLOWDOWNS I AM NOT SUGGESTING
WE ARE IN A SLOWDOWN.
>> LET ME ASK YOU ABOUT CHINA
IN PARTICULAR, HUAWEI THERE IS
A LOT OF FOLKS ON HUAWEI CFO
DETAINED INITIALLY BECAUSE OF
ESPIONAGE, HAS HUAWEI YOU HAVE
COMMON LINES OF BUSINESSES
WITHH; RIGHT?
>> HAS HUAWEI STOLEN TRADE
SECRETS FROM KISCO.
>> THEY ARE BIGGEST COMPETITOR
ON GLOBAL BASIS I ALSO WILL
JUST SAY WHAT I KNOW ABOUT THE
SITUATION SAME THING EVERYBODY
ELSE KNOWS WHAT WHAT WE READ
WE HAD A SUIT BACK IN EARLY
2000, THAT LITERALLY 2002,
2003, I HAVE NO KNOWLEDGE OF
ANYTHING OCCURRING, SO WHAT WE
FOCUS ON AROUND THE WORLD WITH
THEM ANY OTHER COMPETITOR IS
DELIVERING ON SIGNIFICANT
INNOVATION TO ACTUALLY HELP
CUSTOMERS ACHIEVE WHAT THEIR
TRYING TO ACHIEVE THAT IS WHAT
WE FOCUS ON.
>> SEEMS TO ME THAT GIVEN THE
WORRIES ABOUT SPYING AT HUAWEI
IT IS 23 A CUSTOMER HAS TO
CHOOSE PROBABLY GOING TO
CHOOSE KISCO.
>> EVERY CUSTOMER AROUND THE
WORLD RIGHT NOW MAKING
TECHNOLOGY DECISIONS BASED ON
INNOVATION BASED ON CUSTOMER
SUPPORT BASED ON -- ALSO BASED
ON TRUST, THAT IS NO DIFFERENT
WHETHER THEY ARE LOOKING AT,
WE ARE TALKING ABOUT SOME
SOCIAL PLATFORMS COMPANIES
LIKE CISCO AN ELEMENT YOU
THINK PRIVACY DATA EVERYTHING
HAS BECOME MUCH MORE IMPORTANT
DECISION FACTOR FOR OUR
CUSTOMERS, SO WE FOCUS ON
TRYING TO JUST ENSURE OUR
CUSTOMERS FEEL AS GOOD AS THEY
CAN POSSIBLY FEEL ABOUT HOW WE
OPERATE WITHIN HOW WE TAKE
CARE OF THEM, IN THESE AREAS.
>> WHAT ARE YOU DOING
SPECIFICALLY IN TERMS OF
PROTECTING DATA?
YOUR BUSINESS IS CRITICAL TO
SO MANY COMPANIES IN THIS
ENVIRONMENT, WHERE THEY ARE
AFRAID OF ESPIONAGE.
>> WE ACTUALLY HAVE VERY FEW
ELEMENTS OF OUR PORTFOLIO
WHERE WE CAPTURE OUR
CUSTOMER'S DATA ZERO WHERE WE
MONETIZE CUSTOMER DATA WHERE
WE DO SOME COLLABORATION
PRODUCTS WE ACTUALLY WE COMPLY
WITH GDPR, MANY CASES HOST IN
DPUN THAT IS WHAT COUNTRIES
ARE ASKING US TO DO ACTUALLY
WORKING WITH THEM, THE OTHER
THING TRYING TO DO FRANKLY, IS
IF YOU ARE IN GOVERNMENT
TODAY, AND YOUR TASK IS TO
REGULATE OR DRIVE POLICY, IN
THIS RAPIDLY CHANGING
TECHNOLOGY WORLD I HAVE
TREMENDOUS EMPATHY FOR THEM A
VERY HARD THING TO DO
PARTICULARLY WHEN TECHNOLOGY
IS NOT WHAT THEY DO FOR A
LIVING SO --
>> -- 20% OF YOUR BUSINESS.
>> PROBABLY A LITTLE MORE THAN
THAT, GLOBALLY?
BUT IT IS -- BUT -- THE ISSUE
IS THAT WE'RE TRYING TO SPEND
TIME WITH THEM TO THE EXTENT
THEY WANT HELP SO THEY CAN
UNDERSTAND THIS ISSUES MORE
UNDERSTAND THE IMPLICATIONS OF
THE DIFFERENT POLICIES THEY
ARE CONSIDERING, AND WE'RE
TRYING TO CREATE A LEVEL TRUST
WITH THEM TO HELP WORK THROUGH
THIS A IMPLICATED SITUATION.
>> QUICK ON CLOUD YOU ARE
SEEING A LOT OF TRANSITION
THERE FROM YOUR CUSTOMERS HOW
SIGNIFICANT IS THAT BUSINESS
FOR YOU IN TERMS OF GROWTH?
>> IT IS FUNNY I SAID A FEW
MONTHS AGO THAT -- FIVE YEARS,
THE CLOUD WAS GOING TO BE
DEATH OF US, AND IN IRONY OF
ALL I RONNIES THE CLOUD IS
ACTUALLY DRIVING OUR GROWTH
TODAY SO WHAT WE SEE HAPPENING
OUR CUSTOMERS ARE CONSUMING
CLOUD SERVICES FROM IBM,
GOOGLE, FROM AMAZON FROM
MICROSOFT CONSUMING SOFTWARE
APPLICATIONS SALES FORCE
OTHERS THE UNDERLYING
HYPOTHESES TO BUILD TECHNOLOGY
INFRASTRUCTURE COMPLETELY GONE
TRAFFIC GOING EVERYWHERE
YOU'VE GOT IOT, HAVING TO
RESCRUBBING INFRASTRUCTURE TO
ACCOMMODATE THAT WORLD, WHERE