Cisco Systems Investor Day at Cisco Live Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mark McKechnie - Evercore Partners - Analyst : Thanks. It's Mark McKechnie from Evercore. So as our thanks as usual, I appreciate the idea of taking each proprietary industrial solutions and, you know, shift again to IT. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 20, 2014 / 3:00PM, CSCO.OQ - Cisco Systems Investor Day at Cisco Live You threw up a number at the [TAM]. If we could have calculated it, there's 180 billion. I'm assuming that's accumulative Cisco product sales over the past five years. You're going about 2.7 billion now in your services revenue. How do we think about the size of the services opportunity relative to that $180 [TAM]? And really, you know, thinking about which verticals do you go after, you have to bring in domain-specific knowledge and you know, of course how do you balance the margins versus the revenue opportunity there?

Question: Kulbinder Garcha - Credit Suisse - Analyst : Kulbinder from Credit Suisse. I have question to the guy from Telstra. I apologize, I forgot your name.

Question: Kulbinder Garcha - Credit Suisse - Analyst : Erez. So --

Question: Kulbinder Garcha - Credit Suisse - Analyst : Well, Kulbinder is not easy either. And so my question is how you managed between the other cloud services you're going to be offering, Amazon, let's say for example, and Cisco's intercloud and I understand the point that Amazon can give you the reliability and security that many corporates may want today but there's also -- has to be acknowledgement that they are improving every day.

Question: Kulbinder Garcha - Credit Suisse - Analyst : They have massive amount of scale and they are relatively rational on price and they don't seem to want to make much money out of this right now. And so my question is how do you manage that? Do you start the corporate or your customer design and then whatever happen, happens? Or is there value added layer that you put on top of that that means that where you'll be directing them all? I'm trying to understand how that transition works.

Question: Mark McKechnie - Evercore Partners - Analyst : Thanks, John. So Mark McKechnie from Evercore.

Question: Mark McKechnie - Evercore Partners - Analyst : So this may be a laugh question for you, I'm not sure, but the business model transition that a number of the group's talked about. You know, lower upfront cost, more recurring fees, and then also the unbundling from hardware and software. I mean, to me, that was probably the biggest thing I heard today and I'm trying to figure it out. Maybe you could walk us through some of the reasons that drove you to that, you know, be it financial, be it competitive and possibly even, you know, hearing from your customers. But, you know, how important is that business model change and help us out with how impactful that's going to be.

Question: Mark McKechnie - Evercore Partners - Analyst : (Inaudible - microphone inaccessible).