Deutsche Bank and Cisco to Host a Conference Call on Next Generation Security Transcript

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

Question: Vijay Bhagavath - Deutsche Bank - Analyst : Yes. Thanks, Carol. I will start out with the first question. David, Bret, give us a quick highlight snapshot of the security portfolio? We know lots of new things are happening in Cisco's Security Business, especially the more recent firePOWER services. So you have upgraded hardware, lots of new software modules, [acclaimus]. You are very competitive with Palo Alto and the FireEye and the likes, in malware defense next-gen firewalls. Let's start with the highlights, on what's the latest and new in the portfolio, and then we take it from there.

Question: Vijay Bhagavath - Deutsche Bank - Analyst : Yes, excellent. So, David, want to better understand the competitive advantage, and the mode you have around your security business? And where I'm coming from, is more recently the products you have launched as a part of firePOWER services, directly compete with Palo Alto, FireEye in particular, and maybe others. And many of the companies you compete with are specialists, or are perceived as a specialists in their categories. So, how do you convince your customer that you would have a competitive advantage versus this specialist? That's the first part of the question. And then, the second part of the question is, what are some early proof points or success points you're seeing, as you ramp this new product through your worldwide channel? Thanks.

Question: Vijay Bhagavath - Deutsche Bank - Analyst : Great. Excellent. I have a question for both of you. Dave and Bret, more from a customer point of view. Where are the real dollars flowing in your view in security? Give us some sense of a rank ordering or a priority. I mean, when we hear all these buzz words thrown at us, next-gen firewall, IPS, DDoS, app security, endpoint security, on and on, it's a little confusing with so many acronyms, and technology terms thrown at us every day. Give us a sense of rank ordering and priority, first part of the question. And then, second part of the question is, security increasingly is getting purchased and delivered as-a-service. We've seen this with Akamai Prolexic, F5 Silverline. What are your thoughts on moving up into the security as-a-service play? And then what percentage -- which type of portfolio would

Question: Brian Modoff - Deutsche Bank - Analyst : Let me jump in, and ask another question, while other people are queuing. So what are your customers telling you, both of you guys might want to answer this one, in terms of major threat vectors, business and IT challenges and security? And how are you responding to their major challenges and network and information security?

Question: Brian Modoff - Deutsche Bank - Analyst : Yes. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 01, 2015 / 4:00PM, CSCO.OQ - Deutsche Bank and Cisco to Host a Conference Call on Next Generation Security

Question: Brian Modoff - Deutsche Bank - Analyst : Yes.

Question: Brian Modoff - Deutsche Bank - Analyst : Okay. Vijay, jump in?

Question: Peter Callahan - Deutsche Bank - Analyst : Thanks a lot for the call this morning, guys. I actually have a question, a little more higher level, and it's something I [often] get and I often think about is, how do we think about the steady state growth rate for security spend overall? I know if you look at some of the industry forecasts, it's kind of high single-digits, 8%, 9%. But Chuck Robbins in the call talked about Cisco doing double-digit growth in the back half of this year. There is some companies growing meaningfully faster than that, and obviously there has been some choppy results recently in this space as well. And so, where do you guys think spend is going, and is it going to be really double-digit industry spend? Is that where we're headed, and is that sustainable? How do we think about this kind of moving forward, in share gain mode, or in just an industry tailwind, where everybody wins?

Question: Peter Callahan - Deutsche Bank - Analyst : Great. That's extremely helpful.

Question: Norian Hage - - Analyst : Thanks for taking the question. Can you guys talk about -- when you think about building blocks technologies, do you have everything you need to roll out products, key -- to build your portfolio? Do you need to acquire any blocks of technology or products, otherwise how do you think about that whole build versus buy decision?

Question: Norian Hage - - Analyst : And that architectural approach makes total sense. As you look out over the horizon, what sort of innovation/interesting technologies excite you guys as the next thing that might be very applicable to security?

Question: Norian Hage - - Analyst : Great. Thank you very much.

Question: Norian Hage - - Analyst : Thanks.

Question: Vijay Bhagavath - Deutsche Bank - Analyst : Excellent. So here is a question from me around Cisco ONE. I've been hearing from some of your top channel partners, it's actually quite active in the channel, booking Cisco ONE ELA contract, looking to monetize your software more effectively than before. How is Cisco ONE helping your security portfolio because as you mentioned several times, Dave, software is a key ingredient of your portfolio? Thanks.

Question: Brian Modoff - Deutsche Bank - Analyst : Excellent. Another question from me is on IoT. Can you talk about the security implications of IoT? When we're connecting essentially billions of things, how do we ensure that they're secured? How do we manage them? To us, without security IoT, is really going to be limited in its acceptance.

Question: Brian Modoff - Deutsche Bank - Analyst : Okay. Vijay, do you want to ask the last question and then I think we will wrap it up?

Question: Brian Modoff - Deutsche Bank - Analyst : Okay. Can I actually slip in one last question, before we wrap up on [client]. The team has discussed about several end markets within the industry, but you have yet to discuss DDoS. Can you talk about what you are doing in the DDoS mitigation? Thanks.

Question: Brian Modoff - Deutsche Bank - Analyst : Okay. Thank you. All right. I'd like to wrap up. Vijay, do you want to say the wrap up, and we'll be done here?