Scott Coleman (Morgan Stanley): What does the pipeline look like going into the fourth quarter?

Frank Calderoni: The pipeline looks very solid. The key is your close rate, just is as good as normal where it is going to takes you a little bit longer to get the closest. Our peers now at the industry are getting the growth, they are getting the growth in services. They are getting the growth in data center consolidation.

They are getting the growth into new technologies. So we just made a series of initial product announcements in the data center. And doing that in partnership with some of our large players in the data center as well, and stay tuned in terms of how that is a successful course over the next 12 to 18 months.

So that''s kind of how I''d put all together if you put together the various pieces in terms of our growth opportunities, some of the trade-offs and what we are seeing him.

Dawood (UBS): Regarding your commercial business, your SMB business, it has been coming down in terms of growth rate over the last three quarters. Can you comment on that?

John Chambers: It was 18% on a total global basis. What we are also doing is breaking the commercial business into two segments what we call medium, commercial and small commercial.

So, you will see us beginning next quarter to focus on small as a separate market than regular commercial and we are clearly making that one of our $10 billion type of opportunities in terms of our accounts show on that but we are starting from the low base with low market share.

Commercial tends to be a market if your customers business is good, they spend, and if their business is not as good they do not spend. So it will react different into the various theatres based on where you were. In Asia Pacific commercial grew at 30% because their economies are doing well and at the emerging markets grew at 20%, because the economies are also doing well.

And commercial and European markets it grew in the about 27% and again you see good balance. It was challenging in the US in terms of the commercial business only growing 13%.

We have got to continue to be active and to continue to be both effective in bringing new products to market, developing new channels especially in the small market and continuing to be acquisitive in this market as well.

Mark Sue (RBC Capital Markets): Can you give us your thoughts on the duration of the spending costs in the US, and if you think the situation still looks short lived and contained?

John Chambers: Our views have not changed dramatically since early February when we shared with you, we thought that the US would see some bumps here that would last two to three quarters the most likely scenario and by the end of the calendar year most likely scenario was that it will be turning back up.

Tal Liani (Merrill Lynch): Have you received any information to support a better environment or a worse environment?

John Chambers: What we saw in January is exactly what continued. We saw growth in about 9%, 10% or 11% range. And it does move around from either customer segments or geographies within the U.S. and we did indicate to you.

We are starting to see some balance in the U.S., which if you are an optimist, do not tend to be based on the fact on what my customers are saying indicates that you are getting a flow or at least at this period of time using the enterprise balance as an example within that. And by the way the enterprise the counts were deteriorating at a much faster pace two to three quarters ago.

Aaron Rakers (Wachovia): On the switch business and the Nexus prodicuct, as you focused on data center consolidation, how will that product ramp?

John Chambers: If you look at the fixed switching capabilities, it did grow at 11%. The high end switching, the modular segment such as, say, 6000, the new Nexus 7000 were where our challenges were within the switching group.

But it will take a while just like the CRS took a while for the customers to look at it''s capability before you put it in the middle of your network. For the Nexus 7,000 it will take a while and some additional features before the customers put it in the middle of their data centers.

The Nexus 5,000, which we do not start taking orders on for another month or two, is exciting in terms of what it could mean in terms of data center as well.

Ittai Kidron (Oppenheimer & Company): Give us a little bit more color about the revenue and your order growth rate for service provider as a whole and how you see the growth shaping up going forward?