Chuck Robbins

Our bread and butter over the years has been in the enterprise and we have lots of technology, we have a partner ecosystem, we have full stack solutions, we have security, we have all the things that they're looking for to actually build out AI workloads and deal with AI with confidence.

Well, I started by saying clearly we're not pleased with where we are yet.

But I will say over the last two to three years, we've made a lot of progress.

It's a major decision for customers to make big platform decisions in security.

We've had a lot of great wins.

I'm proud of what the teams have built.

And we saw our next generation firewalls.

We saw mid-teens growth in orders there.

We saw double-digit ARR growth in Splunk.

We saw our new and refreshed products on the security side continue to show growth.

And the issue we had in the quarter was really it's an accounting issue around how cloud delivered Splunk versus on-prem delivered Splunk.

The cloud stuff is routable and revenues realized over the life of the term.

And the on-prem stuff gets recognized immediately.

And we just had a major shift in how our customers consume it, which is great for us in the long term that they're buying more cloud-based solutions.

But it creates a little bit of a challenge on revenue during the quarter.

The good news is the networking business is doing incredibly well and can cover that for us.

I think the big things that we did, we obviously introduced a lot more software into our portfolio in areas that are strategic, like security.

And the Splunk acquisition has been a great one.

I think the other thing that's worth calling out is this investment that we started in 2016, to be clear, on our silicon strategy that is absolutely the reason that we're having success today in the hyperscaler space.

If we did not have our silicon,